FY16 FEDERAL BUDGET – WHAT HAPPENED TO THE CRISIS
By Patrick Malcolm
Many of our clients know of Matthew Sherwood from either attending one of our end of year seminars where Matthew has been our special guest presenter for the last five years or have listened to him on one our Investment CD’s recordings. The feedback from the clients that have attended the seminars has always been excellent and they have found Matthew’s views on the economy of great interest.
For those that don’t know Matthew, he is the Head of Investment Markets Research for Perpetual Investments, the largest independent Fund Manager in Australia. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.
We will be providing an extensive Federal Budget update in the Weekly Email on Monday. In the meantime, we thought you would be interested to watch a video update on the FY16 Federal Budget by Matthew Sherwood.
Matthew shares his views on the FY16 Federal Budget and how it still shares the same message as the previous four.
“In the decade to 2012, Australia was drowned in national income growth from China which culminated in an ‘entitlements culture’ where everyone watched the Federal Budget to see what they got. This led to large structural spends funded by cyclical revenue, but those rivers of gold have now dried up. Indeed, the past four budgets have all had the same message: ‘a China slowdown has negatively impacted growth, revenue and the Budget bottom line’. The FY16 Budget is no different and does not address the spending-revenue mismatch, but at least it takes several steps in the right direction.”