The Mid-Year Economic and Fiscal Outlook (MYEFO) was released today and it’s clearly showing a grim outlook for Australian business with revenue declining and cost increasing – not quite the path to profit that we desperately need.
The budget deficit for this financial year will be $40.4 billion. That’s more than $10 billion larger than forecast in May and it doesn’t look like it’s set to reduce for another four years at least.
How will this deficit impact Australian business?
These figures ring alarm bells for the economy. Treasurer Mr. Joe Hockey warned us about the anticipation of job losses and an end to Australia’s prosperity ahead of the update, and now these warnings are set to be come a reality.
Increased unemployment and weaker growth in wages is just the beginning. Mr Hockey blames two factors for the $43.7 billion deterioration in the budget over the four-year estimates - the impact of the economy on tax receipts and payments, and the Senate's handling of May budget measures.
Where can I read more?
Azure Group highly recommends the following sources to learn more about the MYEFO and what that means for Australian business in the coming years:
- ABC’s MYEFO explained: the budget bottom line in 4 charts
- Australian Financial Review’s MYEFO at a glance | Key points
- Read the full report on the Treasury website
It’s important to factor in what this could mean for your business. Any of the Azure Group Advisors would be happy to review the potential impact on your business and suggest strategies to safeguard against this.
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