The Australian Budget has just been released and this is the third that Turnbull has been involved in. The budget will see a deficit of approx AUD14.5bn next year but will return to a small surplus between 2019-2010.
The Australian government also claims to have turned the corner on both the amount of debt and the deficit but for them to hit their targets this will depend on some very high forecasts.
Wages are anticipated to grow and unemployment predicted to fall whilst GDP will grow from 2.1% to 3% in the next couple of years. Wages have been stagnating in recent times but the Federal Budget is hoping that they will rise in order to help grow the economy.
One of the most interesting topics to be covered was that of tax and the general feeling is that the budget has been aimed at the middle class. The current 37% tax rate will be abolished in 2024-25 with any Australian earning anything up to AUD200,000 being taxed at 32.5% from then on.
The budget has been taken rather well down under and was aimed at keeping the voters happy and with Malcolm Turnbull due to run his full time in government this could be a year from now before the next election takes place.
As we turn the focus back to what is happening in the currency markets the next data release to impact GBPAUD exchange rates will come overnight when the Westpac Consumer Confidence survey is released.
However, arguably the biggest event of the week will likely be the Bank of England’s interest rate decision due on Thursday afternoon. The chances are that we’ll see the BoE keep rates on hold and this could see the Pound falling vs the Australian Dollar.
Having worked in the currency industry for 15 years I am confident that with my experience I am able to help you with the timing of your transfer as well as offer you bank beating exchange rates.
A small percentage of difference can be rather large depending on the size of your transfer so feel free to email me directly with your personal requirement and I look forward to hearing from you.
Tom Holian [email protected]