Invest
‘Boring budget’ could signal an early election
The absence of serious reform or policy in last week’s federal budget has led some to suspect that an October or November election may be on the cards.
‘Boring budget’ could signal an early election
The absence of serious reform or policy in last week’s federal budget has led some to suspect that an October or November election may be on the cards.
According to Change Accountants CEO Timothy Munro, Treasurer Josh Frydenberg’s latest budget isn’t just “boring”, but a pre-election plug.
“It wouldn’t surprise me if they go to the polls in October-November. Right after the footy grand final and before the cricket season,” he said.
Speaking to nestegg, Mr Munro was confident that the crowd-pleasing bent of this year’s budget aligns with the possibility of a federal election later this year.
“Everyone feels good about stuff. The economy is moving along and the government doesn’t have any surprises. They’ve had a lot of stuff happen recently which has detracted from economic conditions and other things, but if things keep going well on the economy, it wouldn’t surprise me,” Mr Munro said.
Although he’s far from the only speculator saying that the 2021 budget will be the last before the next federal election, Mr Munro’s prediction puts him ahead of the timeline previously suggested by Prime Minister Scott Morrison.
Speaking to Brisbane radio station 4BC back in January, the Prime Minister insisted, “2022’s the election year, that’s when it’s due, too much to do this year. This year is about jobs, and that’s where my focus is.”
As per the official Australian Parliament website, the next federal election should take place before 21 May 2022 but could be called by the sitting government before that date.
The 2019 election was widely predicted to end in a victory for Bill Shorten and the Australian Labor Party. Instead, Scott Morrison and the Liberal Party were returned for their consecutive third term.
Labor’s 2019 loss has been frequently attributed to the party’s position on issues like negative gearing and franking credits in the years since. Changes to either of these issues were not mentioned in Opposition Leader Anthony Albanese’s recent budget reply speech.
The Property Council of Australia, highlighting the omission, called the speech a “missed opportunity for the opposition to rule out changes to negative gearing and capital gains tax arrangements”.
“Changing current negative gearing or CGT arrangements would be the wrong policy at the wrong time and have a perverse impact on housing affordability,” Property Council chief executive Ken Morrison said.
RELATED ARTICLES
-
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
-
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
-
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
About the author
About the author
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
