“My initial thoughts are there’s been, thankfully, some necessary pulling back of certain long-term commitments that were sustainable; things like tax cuts. It’s not going to make most people happy, I know, but the reality is that it’s like running a household: You can’t keep spending more than you earn and hope it’s going to get better,” says Morgan.
“I’m not sure whether all of that’s gone far enough and I’m a bit concerned that they’ve still gone forward with some big ticket long-term expenditure that, right now, it’s hard to see how that’s going to be funded. Things like the baby bonuses and tax cuts that the country can’t afford are being wound back, but the incoming government is going to have a few more cuts they’re going to be forced to make.”
In terms of how the announcements will affect the home loan market, but Morgan and Rokka remain cautiously optimistic.
“I feel that the Budget will cause further household tightening and give people more opportunity to repay debt and secure rates at historic lows. This could keep our rates at historic lows a little longer than previously expected,” says Rokka, who’s also pleased with the outcomes for pensioners.