In an interview with Sky News earlier today, the Australian re-elected Prime Minister Scott Morrison said that the parliament may be unable to convene in time, implying that Australia’s re-elected conservative government may not meet a June deadline for tax breaks that policymakers had been counting on to give the slowing economy a much-needed boost.
The delay in tax rebate, maybe for months or even a full year, would add to the case for at least one cut in the current 1.5% cash rate, possibly as early as next month.
Key Quotes (via Reuters):
“We obviously have to wait for the writs to be returned and there’s a formal process for that.”
“At the moment, that’s not looking until very late into the back end of June.”
“So, that really does make very narrow that opportunity to do it before 30 June.”
“I think that’s very unlikely, with the advice I’ve received.”
Morrison’s Liberal-National coalition had promised tax rebates to around 10 million middle- and low-income earners from July 1 worth up to A$1,080 per person.
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