After the gloom of the GFC, then a brighter outlook last year, the upcoming Federal Budget could be a "stinker", according to our economist, Associate Professor Neville Norman of Melbourne University. He foreshadows a return to the old days of a tough first-year budget, followed by better times, then a round of sweeteners before the next election. That means tax increases, government spending cuts, and slower progress on returning the budget deficit to surplus. And, in turn, that means some shock and horror for business in the short term, but the longer-term implications are good if sensible changes to the tax system are made. The main problem is a fog of policy uncertainty which is causing business to stop investing.
Adobe Flash Player (version 9 or above) is required to play this audio clip. You also need to have JavaScript enabled in your browser.
|
