Ratings agency points to economic challenges
International ratings agency, Fitch Ratings has pointed to a slowing economy and raising unemployment as among the challenges confronting the re-election Liberal/National Party Coalition Government.
“We forecast the Federal government to reach an underlying cash surplus by next fiscal year. But a challenging economic environment poses risks to this outlook,” the company said in a post-election analysis. “The economy is slowing and the unemployment rate has inched up, which could weigh on fiscal revenues. A sharper economic slowdown could also lead to pressures for greater fiscal stimulus.”
“The likely continued need for cross-bench support in the Senate could limit the government’s ability to advance some of its policy priorities. This poses additional risks to the budget outlook and the government’s ability to tackle medium-term economic reforms,” the Fitch Ratings analysis said.
However, it said that it expected the re-election would bring broad party policy continuity in line with the fiscal priorities announced in the Government’s pre-election budget.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
