The economic and cash-flow impact of the repealing of the carbon tax in Australia is set to have an under-appreciated impact on the Australian economy
The economic and cash-flow impact of the repealing of the carbon tax in Australia is set to have an under-appreciated impact on the Australian economy. In the Budget papers it revealed that the removal of the tax would inject around $7.4 billion into the Australian economy in FY15 and FY16 will provide some much-needed income support to Australian families. This is a large amount of funds and is just below the first round of stimulus handed out by the Rudd government during the global financial crisis in 2008. Indeed, with domestic income growth presently running at a 17-year low, the additional cash flow is significant and it will support consumer spending going forward and should provide a +0.3% stimulus into the economy this year. This support comes at a time when any additional stimulus is welcome, given the RBA appears set to remain on hold for an extended period. (VIEW LINK)
The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.