Henderson talks up MYEFO forecast

CORANGMITE federal member Sarah Henderson is talking up her government’s financial management, saying the Mid-Year Economic and Fiscal Outlook (MYEFO) shows Australia will have a budget surplus in the next financial year.

Announced by Treasurer Josh Frydenberg last week, the underlying cash balance in MYEFO is forecast to improve from a deficit of $5.2 billion in 2018-19 to a surplus of $4.1 billion in 2019-20.

The surpluses are forecast to increase year-onyear to $12.5 billion in 2020-21 and $19 billion in 2021-22.

“We have made real progress in strengthening the Australian economy,” Ms Henderson said.

“We are on track for a budget surplus in 2019-20, our unemployment rate has fallen to five per cent and welfare dependency is at its lowest rate in more than 25 years.

“A stronger economy is the key to delivering better essential services in Corangamite. It means more funding for schools, hospitals and infrastructure. It also means tax relief for hard working Australians and small and family businesses.”

The latest MYEFO also contains more than $9 billion over four years for “decisions taken but not yet announced”, which has been widely speculated as being earmarked for tax cuts and/or election commitments.

Shadow Treasurer Chris Bowen criticised the Coalition’s MYEFO for assuming higher tax income that would come from wages growth returning to strong levels “when they have absolutely no policy to bring that about; absolutely none”.

“In fact, their policy has been, as it’s been implemented, to cut wages, for the first time in 80 years in Australia.”