Brokers' Budget response

by Mackenzie McCarty15 May 2013
“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.

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  • by Keith 15/05/2013 11:00:26 AM

    They couldnt run a brothel how can one a government have any credibility on backdrop of predicting a surplus 12 months ago to an amazing deficit ...and it goes on for 2016/17 and on based on tax receipts which are questionable!

  • by Frank 15/05/2013 11:11:35 AM

    How can anyone believe what this government has to say regarding the budget or anything for that matter. The forecast deficit for the 2012 budget was 22 billion and ended up being $44 billion. The same with this budget. Forecast to be in surplus then 19.4 billion. Any fool who believes a word these economic incompetents say believes in santa clause and the easter bunny.

  • by Just a battler 15/05/2013 12:23:17 PM

    Do they thing the Australian people are morons?
    Ten years to bring the books back in the black?
    If I ran my business like this Government run our country, then I would be out of business in very quick time.
    Swan can make all the excuses he likes, but the truth be known, they have stuffed up