150323 Joint Party Room Meeting
-
Upload
political-alert -
Category
Documents
-
view
311 -
download
0
description
Transcript of 150323 Joint Party Room Meeting
Initiatives in the Budget will be focused on jobs, growth and opportunity
• Small business package
• Childcare reform
• Infrastructure investment
• Free trade agreements
• Integrity in our tax and welfare systems
3
Main beneficiaries from the Budget will be families and small business
• The IGR showed that our future prosperity will rely on boosting workforce participation and increasing productivity
• PC Childcare Report showed that roughly 165,000 parents with children aged under-13 would like to work but are not able to
• Small business employs around 4.5 million people but could create even more jobs and innovation
4
State of the books
• MYEFO showed we are on track to return to surplus
– Despite weaker global outlook
– Despite historic iron ore price collapse
– Despite impact of the Senate
5
Falling global growth forecasts
6 Source: IMF January 2015 World Economic Outlook.
0
1
2
3
4
5
6
0
1
2
3
4
5
6
2000 2002 2004 2006 2008 2010 2012 2014 2016
Per cent Per cent
Forecasts
October 2014WEO
Iron ore
7 Source: Platts and Treasury.
45
60
75
90
105
120
135
150
45
60
75
90
105
120
135
150
Mar-12 Jul-12 Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Jul-14 Nov-14 Mar-15
2013-14 Budget - $121
2014-15 Budget - $95
US$/t, FOB US$/t, FOB
2014-15 MYEFO - assumption - $60
2012-13 Budget- $136
Today - $50.2
We will continue to improve the Budget bottom line each and every year
• MYEFO showed average of 0.6% of GDP consolidation
• Must continue a sensible path of fiscal consolidation
• Monetary policy and fiscal policy must work hand in hand
9
The cash rate and the pace of consolidation
11 Source: Treasury, RBA and ASX.
6
7
8
9
10
11
12
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014 2015 2016 2017 2018
Cash rate (Per cent) Change in underlying cash balance ($b nominal)
Market Expectations of the RBA cash rate (LHS)
Change in underlying cash balance (RHS)