Australia: Tax cuts to spur on household spending - ANZ
|Analysts at ANZ point out that for the Australian economy, tax cuts are arriving in the form of tax refund payments from July and thinks that the boost to Australian households will be considerable as there are also some one-off payments to households.
Key Quotes
“We estimate the promised cuts and payments will total $7.2bn, raising annual household income by 0.6%. The tax cuts will be in the form of lump-sum tax refunds.”
“As tax returns vary in timing, we think a slower and more spread-out pattern of spending growth is likely. We believe the tax cuts will boost household consumption in the September and December quarters.”
“Over the last ten years, however, Australian households have changed. We are more indebted and our non-discretionary expenses are higher; we spend more on travel and less on retail. And this may affect how we spend, this time around.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.