Surplus to arrive early
TREASURER Scott Morrison is set to announce an early return to surplus today with reports the bottom line could be back into the black by $5 billion within two years.
Despite the Government announcing a $24 billion cash splash on infrastructure and flagging personal income tax cuts targeted at low and middle income earners, it’s expected higher-thananticipated revenue will allow the Treasurer to announce an early return to surplus by 2019-20.
The surplus for 2019-20 will be at least $5 billion and could be as high as $7 billion.
Last year’s budget forecast a $2.6 billion deficit for 201920 and a return to surplus by 2020-21. The mid-year budget update in December contained a hint that revenue collections had been higher. It showed a higher expected surplus for 2020-21 of $10.2 billion, up from the smaller $7.4 billion surplus forecast last May.
The National Australia Bank’s monthly survey shows business conditions are at their strongest in more than 20 years, while confidence also rose in April to stand well above its historical average.
This is expected to eventually translate into upward pressure on wages. But the ANZ job advertising series, a key pointer to future employment, fell for a third consecutive month in April at a time when jobs growth has already come off the boil.