MYEFO Announcement Reflects Tinge of Positivity in Australian Economy: BDO Australia comments

15 December 2020

The Mid Year Economic and Fiscal Outlook (MYEFO) update, to be delivered on Thursday, will reflect a tinge of positivity shining through in the Australian economy, according to leading professional services firm BDO Australia.

BDO Tax Partner Mark Molesworth said: “The combination of a higher than expected GDP growth in the last quarter along with a wind-down of stimulus measures such as JobKeeper has put a seasonal spring in the Treasurer’s step.”

“We expect this will translate into a MYEFO that has a tangible tinge of positivity.”

“A trio of confidence boosters in the form of a 3.3 per cent rebound in GDP over the three months to September; fewer than expected employers applying for the JobKeeper relief due to improved trading conditions in October; and increased tax receipts from higher iron ore prices have provided much needed relief on the budget.

“The end of a hard lock-down in Melbourne, big consumer spending figures over Black Friday, Cyber Monday and pre-Christmas retail and hospitality trading has also translated into consumer and business confidence.

“If this carries over into the New Year then we hope that the Treasurer looks at serious, productivity-enhancing tax reform to continue the economic momentum.”