The 2021-22 Australian Budget – spending the growth windfall to further grow the economy towards full employment

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Key points The Government now expects the Federal budget deficit to peak at $161bn this financial year (down from $214bn in October’s Budget) and fall to $107bn in 2021-22. The windfall to the budget from stronger growth is being spent on extra stimulus. Return to budget surplus looks more than a decade away. Key measures... Read more continue reading

National rental vacancy rate drops in April

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SQM Research has revealed the national residential rental vacancy rate dropped to 1.9% over the month of April 2021 from 2.1% in March, with suburban vacancy rates continuing to fall, with landlords demanding huge rent hikes in some locations including the Gold Coast and North Coast NSW. The total number of vacancies Australia-wide is now... Read more continue reading

Weekly market update – week ending 7 May, 2021

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Investment markets and key developments over the past week Share markets mostly rose over the last week helped by good earnings and dovish central banks. US, European and Japanese shares rose but Chinese shares fell. Helped by the positive global lead and a dovish RBA the Australian share market also rose making a new recovery... Read more continue reading

The return of geopolitical risk? – what to watch over the remainder of 2021

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Key points Geopolitical issues generate much interest but don’t necessarily have a significant impact on markets. But geopolitical risks are higher than prior to the GFC reflecting three big themes: a populist backlash against economic rationalist policies; the falling relative power of the US; and the polarising impact of social media. After a lull following... Read more continue reading

Are we now at the top of the V-shaped recovery?

By now most investors are tiring of their inboxes being filled by sell-side economists and strategists talking about reflation, how much more optimistic they are relative to consensus, and for how much longer the reflation trade will persist. To be clear, there were very few people talking about a strong V-shaped recovery this time last... Read more continue reading

Budget deficit: $30 billion smaller than forecast

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Monthly budget statement The Monthly Financial Statements for March 2021 report the budget position against the expected monthly profile for the 2020/21 financial year through to 31 March 2021. Over the full twelve months to March the budget deficit was $196.17 billion or 9.8 per cent of GDP. The underlying cash balance for the 2020-21... Read more continue reading

Weekly market update – week ending 30 April, 2020

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Investment markets and key developments over the past week Share markets were mixed over the last week with US shares rising to new record highs helped by good economic data, strong earnings and more stimulus and Chinese shares rising but European and Japanese shares fell. Australian shares also fell back slightly as the local market... Read more continue reading

CommSec State of the States – April 2021

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Overall results How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements. Just as the Reserve Bank uses long-term averages to determine the level of “normal” interest rates; we... Read more continue reading

Weekly market update – week ending 23 April, 2021

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Investment markets and key developments over the past week Share markets generally fell over the last week with first worries about the resurgence in global coronavirus cases and then reports that President Biden will propose a doubling in capital gains tax for high income earners weighing on markets. Although Chinese shares managed to rise from... Read more continue reading

Counting down to 100 Days

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The last 12 months have been ones of extreme change and adaption. Covid-19 changed the landscape on a number of fronts. Working from home became business as usual, social distancing became the norm and restrictions on travel both domestically and internationally took hold. As well as dealing with the domestic and global implications of Covid-19,... Read more continue reading