With very little in this year’s Federal Budget for business, the clear winner in this budget race was housing affordability; but the peloton of real tax reform has been left far behind with Scott Morrison putting in a few chicanes impacting on the pedal power of Banking in particular. Bank investors will be wondering what caused the Government to change gears around taxation and regulation of the major players in that industry.
While it is a great nudge to move housing affordability to the front of the pack, continued tinkering around the edges of tax reform, particularly by using this blunt instrument of tax to affect behaviours, continues to draw out the endurance race for real tax reform.
The other clear winner in this year’s Budget was infrastructure spending. With commitments to fund road, rail and airport projects across the country, the Government has clearly shown that it wants to smooth the path for increased productivity. It remains to be seen whether the projects chosen will deliver the boost to the economy that we should expect when the Government commits our children to repaying significant debts.
BDO’s Tax team has analysed the Budget papers and prepared a report on the key findings of the 2017 Federal Budget.
BDO has also prepared a summary of the Federal Budget report in Chinese.