Treasurer Releases MYEFO – Mid-Year Economic And Fiscal Outlook Projects Lower Growth But Surplus In 2020-21

The Treasurer, Scott Morrison, has released the Mid-Year Economic and Fiscal Outlook, a budget update that projects lower growth but with a return to surplus still forecast in 2020-21.

Morrison

MEYEFO projects that economic growth in 2016-17 will fall from 2.5% to 2%. In 2017-18, it will be 2.75%, down from 3%. The 2018-19 and 2019-20 projections of 3% growth remain.

The government says the underlying cash deficit is expected to narrow from $36.5 billion (2.1% of GDP) in 2016-17 to $10.0 billion (0.5% of GDP) in 2019-20.

Treasurer Scott Morrison told a press conference with Finance Minister Senator Mathias Cormann this afternoon that in six weeks of parliamentary sittings since the election the government has legislated two-thirds of its budget repair measures.

MYEFO has confirmed that Tony Abbott’s Green Army will be abolished. The government will also save $970 milllion from cuts to family payments.

Tax receipts are down $31 billion from the May Budget forecasts.

Unemployment is predicted to remain at 5.5% through to 2017-18, falling to 5.25% thereafter.

  • Listen to Treasurer Morrison and Finance Minister Cormann at their press conference (44m)
  • Watch the press conference (45m)
16-12-19_myefo

Media release from Treasurer Scott Morrison and Finance Minister Senator Mathias Cormann.

Today’s Mid-Year Economic and Fiscal Outlook (MYEFO) confirms that the Budget is projected to return to balance in 2020-21.

The underlying cash deficit is now expected to narrow from $36.5 billion or 2.1 per cent of GDP in 2016-17 (down on the $37.1 billion reported in the Budget and PEFO) down to $10.0 billion (0.5 per cent of GDP) in 2019-20. [Read more…]


Government And ALP Agree On Budget Repair Deal

The Turnbull government and the ALP have negotiated a deal over budget repair.

Turnbull

The agreement on spending cuts will add to the budget’s bottom line and ensure that the government’s Omnibus Bill will pass through the Parliament.

Earlier in the day, the ALP announced the agreement. The deal included an agreement that the ALP would make the first announcement. [Read more…]


How The Turnbull Government Lost Control Of The House

The absence of nine members of the Coalition caused the Turnbull government to lose control of the House of Representatives for nearly two hours last night.

House

When a procedural motion to adjourn the House was put at 5.00pm, the ALP surprisingly voted No and called for a division, which it won by 69 votes to 67. The ALP then took control of the proceedings of the House and initiated a debate on a Senate resolution calling for a royal commission into the banking system.

Over the next 45 minutes, the government lost two more divisions and did not regain control of the House until 6.50pm, after coalition MPs were brought back into the chamber.

It was the first time since 1962 that a majority government has lost votes in the House of Representatives. Like the Turnbull government, the then Menzies government also governed with a one-seat majority. [Read more…]


Morrison Warns Of Economic Complacency And Calls On ALP To Support Budget Repair Measures

The Treasurer, Scott Morrison, says there is a “terrible risk” that Australia’s economic success has sown the seeds of complacency.

Morrison

In a speech to Bloomberg, in Sydney, Morrison said there was a new divide in Australia between “the taxed and the taxed nots”. He warned of the complacency of a generation that “has grown up not ever having known a recession” and an attitude where “deficits are dismissed as temporary, cyclical and self-correcting”.

Morrison said there were three things the government must do over the next three years.

Firstly, it must “get debt under control by returning the budget to balance”.

Secondly, it must “support and implement policies that help us to increase what we can earn as a nation..in a low growth, low interest rate, low inflation, low wages growth, volatile world”.

Thirdly, Morrison warned against a return to “renewed protectionism” and an attitude that “trade, investment and positive immigration policies are increasingly seen as the problem and not the solution”. Whilst many Australians “feel the system no longer works for them”, Morrison cautioned against a cynical and populist political endorsement of this sentiment. “We cannot pull the doona over our head,” he said. “Rather than secure our economic future, it will cost it.” [Read more…]


MPs Who Won Their Seats On First Preferences In The 2016 Federal Election

Just under a third of the seats in the House of Representatives were decided on first preference (primary) votes, at the 2016 Federal Election.

By definition, these seats are the most secure for the various parties, since preference distribution cannot change the result. The winner has already secured an absolute majority of at least 50%+1 over every other candidate.

Of the 150 electorates, 48 (32%) were won on the primary vote. There were 53 such seats (35%) at the 2013 election. In 2004, 89 seats (59%) were decided on first preferences.

The Liberal Party was most successful, winning 27 of the 48 seats (56%), including 12 in NSW. The Liberal wins covered 4 states.

The Nationals won 5 seats (10%), including 3 in NSW, giving the coalition 32, or 67% of the total.

The ALP won 16 (33%) of the seats, including 10 in NSW. It won 6 seats in Victoria, but failed to win any more in other states or territories.

Seats Won On Primary Votes – 2016 Federal Election
Party NSW Vic Qld WA Total
Liberal Party
12
8
4
3
27
The Nationals
3
2
5
Australian Labor Party
10
6
16
TOTAL
25
16
4
3
48

 
NSW was the only state to have a majority of seats (25 of 47, or 53%) won on primary votes. In Victoria, 16 seats out of 37 (43%) were won on first preferences. Western Australia recorded 19% and Queensland 13%.

The two smallest states, South Australia and Tasmania, had no seats decided on primaries. The four seats in the two territories all went to preferences. [Read more…]


Turnbull And Morrison Reiterate That No Census Data Has Been Accessed Or Lost

Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have emphasised that no data was accessed or lost during last night’s crisis for the 2016 Census.

Turnbull

Speaking at a press conference in Sydney, Turnbull said the census site will be back online as soon as the Australian Signals Directorate is satisfied. [Read more…]


Banks Will Have To Appear Before House Economics Committee Say Turnbull And Morrison

Australian Banks will have to appear once a year before the Economics Committee of the Parliament, under plans announced today by Prime Minister Malcolm Turnbull.

Turnbull and Treasurer Scott Morrison held a joint press conference to outline the plan. Turnbull said the banks “operate under a social licence from the Australian people”. Built on a foundation of trust, “they have to earn that trust through being open and accountable at all times,” Turnbull said.

The heads of the four major banks will be required to appear before the House of Representative Standing Committee on Economics. Morrison said this was “in the same way that the Reserve Bank and APRA currently appear before the committee on a regular basis”. [Read more…]