Australia 2017 Budget Update – Winners

Last night Treasurer Scott Morrison has handed down the budget and here are a summary how this could effect you.

First home buyers

From July 1, 2017, young people will be given the option of piggybacking on their superannuation to access a kind of super-charged savings account, which will allow savers to salary sacrifice up to $30,000 – $15,000 in a single year – from their pre-tax income to later go towards a first home deposit.

It will receive the same favourable tax treatment going in and out as superannuation. The government says when it comes time to cash out, the scheme will leave savers about 30 per cent better off overall than if they went with a typical deposit savings account.

School students

Whether you get a shiny new iPad will very much depend on which school you go to.

An extra $18.6 billion will be injected into school funding over the next decade under David Gonski’s needs-based model, originally championed by Labor.

But the model will not discriminate between public, private and Catholic schools, so 24 of the nation’s wealthiest schools will experience “negative growth” in their funding and 350 “slower growth”.

More than 9400 schools will see an uptick in funding, however, as it increases from $17.5 billion this year to $22.1 billion by 2021 and $30.6 billion by 2027.

Medicare

The Government is hitting back at Labor’s “Mediscare” campaign with a new Medicare Guarantee Fund to cover essential healthcare.

It will provide $1 billion over four years from 2017-18 for the phased unfreezing of the Medicare rebate, starting with bulk billing incentives for GPs in July 2017, moving on to specialist consultations in 2018, specialist procedures in 2019 and diagnostic imaging in 2020.

Some medicines could be cheaper as more items are listed on the Pharmaceutical Benefits Scheme and doctors are encouraged to prescribe generic brands.

There will be an extra $2.8 billion in funding for hospitals, including $730 million for Tasmania’s Mersey Hospital.

The Medical Research Future Fund will get $65.9 million towards preventive health research, clinical trials and breakthrough research investments, and $5.8 million will be provided for research into childhood cancer.

Pensioners

The Government will provide $268.9 million over two years for a one-off winter energy payment in 2016-17 of $75 to singles and $125 per couple.

The pensioner concession card will be restored to those who lost it after the pension assets test change introduced earlier this year, so seniors will regain access to state and territory based concessions that were withdrawn after the change.

The Government will also provide $5.5 billion for home support services for the elderly as Australia’s population continues to age.

But the residency requirements will be tougher, with recipients required to have 15 years of continuous Australian residence.

Small business

More tax breaks and red tape reduction are on the cards this year, with the $20,000 instant asset tax write-off introduced in the 2016 budget being extended for another year until 2018, and opened up to businesses with an annual turnover of up to $10 million. The federal government is also offering states and territories up to $300 million in exchange for reducing red tape for small businesses.

Western Sydney Airport

The federal government is holding up their promise to build Western Sydney Airport after the owners of Kingsford Smith Airport decided not to take up the opportunity.

It will provide up to $5.3 billion in equity to establish WSA Corporation Limited from 2017-18 to develop the airport. Works are expected to commence by late 2018 and airport operations by 2026, creating 20,000 jobs.

Western Australia

Yes, the state that is facing a bleak future thanks to the end of the mining boom, but it will be getting a huge influx of much-needed federal government funding.

The state will get $1.6 billion to go towards a $2.3 billion road and rail infrastructure package in partnership with the state government. This will include a combined $1.2 billion towards the METRONET rail project and $100 million for better road access to the Fiona Stanley Hospital precinct.

The federal government will also top-up WA’s GST payment by $226 million.

According to the government: “This funding is in recognition of Western Australia’s low share of GST revenue”.

But the government is also putting the pressure on the WA Government to move forward with the Perth Freight Link. It says it will provide $1.2 billion to any future WA Government which proceeds with the project.

Regional areas

Those living in regional areas will be looking forward to some improved infrastructure. Firstly, the government will provide an extra $8.4 billion in equity investment to the Australian Rail Track Corporation to deliver inland rail from Melbourne to Brisbane.

A regional growth fund will invest another $472 million in infrastructure projects that back plans to “adapt to the changes taking place in the economy”.

There will be $28.5 million to establish the Regional Investment Corporation to streamline the delivery of $4 billion in concessional loans. This includes the $2 billion National Water Infrastructure Loan Facility and the $2 billion Farm Business Concessional Loan Scheme.

Tourism operators in Queensland

The government will provide $5 million in 2016-17 to help the Queensland tourism industry recover from the impact of Tropical Cyclone Debbie.

Funding of $3.5 million will be provided to the Queensland Government to fund tourism projects and Tourism Australia will undertake media advertising to promote the continued availability of tourist venues in North Queensland at a cost of $500,000.

Tourism Australia will also reprioritise $1 million of existing marketing investment funds to focus its current international coastal and aquatic campaign on Queensland destinations.

People worried about their gas bills

The government seems to be focused on increasing gas production to help keep power prices down. It is providing $86.3 million over four years from 2017-18 towards assessing three possible onshore unconventional gas sites and identifying potential environmental impacts.

It includes providing $28.7 million to encourage and accelerate responsible development of onshore gas for the domestic market.

There will also be a study to identify possible improvements to the National Gas Services Bulletin Board so users can view real-time data about gas availability.

Constraints on increase gas supply on the east coast of Australia, and of current and potential gas production in offshore South Eastern Australia will be examined.

The Australian Competition and Consumer Commission will be given $6.6 million over three years from 2017-18 to establish a monitoring regime for the gas market, meaning industry will have to provide more information about factors that impact supply and pricing.

Andrew Law
General Manager
m: 0411 625 998

Market Updates 08/05/2017

China’s foreign exchange reserves rose in April for a 3rd straight month beating market expectations as capital controls and a pause in the dollar’s rally helped with capital outflows coming out of China. Reserves rosed $US 21 billion in April to $3.03 trillion compared with an increase of $3.96 billion in March to $3.009 trillion.
Harry Triguboff, the country’s richest man and director of Meriton is expected to finance about $200 million of the $1.4 billion worth of apartment sales this year as Chinese buyers are struggling with tougher currency controls to get money into Australia.  China has tightened rules on moving capital outside of the country in recent months as it seeks to support the Yuan and stem a slide in its foreign exchange reserves.
Why not give Superforex a call today and see how we can provide the simple FX solutions.
Local market will be keen for the delivery of Annual Budget on Tuesday by Treasurer Morrison.
DATA RELEASES THIS WEEK:
MONDAY:
AUD – Building Approvals m/m, NAB Business Confidence & ANZ Job Advertisements m/m
CNY – Trade Balance
TUESDAY:
AUD – Retails Sales & Annual Budget Release
WEDNESDAY:
ECB President Draghi Speaks
THURSDAY:
USD – Crude Oil Inventories
NZD – Official Cash Rate
GBP – BOE Inflation Report, MPC Official Bank Rate Votes, Monetary Policy Summary & Official Bank Rate
FRIDAY:
USD – CPI m/m, Core CPIU m/m, Retail Sales m/m & Prelim UoM Consumer Sentiment
Regards,
 
Andrew Law
General Manager
m: 0411 625 998

Market Updates 2/05/2017

AUD has advanced overnight on expectations that RBA will increase rates in the near future. The RBA is expected to hold its key rate at 1.50% when it meets today.
AUDUSD was up trading up to $0.7523 in the early morning of trading. USD rose strongly again YEN after investors shrugged off weaker US factory activity and inflation data from last week. All investors will be focusing on this week’s Non-Farm Payroll data from the US.
DATAT RELEASES THIS WEEK:
TUESDAY:
USD – ISM Manufacturing PMI
AUD – Cash Rate & RBA Rate Statement
GBP – Manufacturing PMI
WEDNESDAY:
NZD – GDT Price Index, Employment Change q/q/ & Unemployment Rate
GBP – Construction PMI
USD – ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Crude Oil Inventories, FOMC Statement & Federal Fund Rate
THURSDAY:
AUD – Trade Balance & RBA Gov Lowe Speaks
GBP – Services PMI
CAD – Trade Balance
USD – Unemployment Claims
FRIDAY:
EUR – ECB President Draghi Speaks
CAD – BOC Gov Poloz Speaks, Employment Change & Unemployment Rate
AUD – RBA Monetary Policy Statement
NZD – Inflation Expectations q/q
USD – Employment Rate, Non-Farm Employment Change & Average Hourly Earnings m/m
Andrew Law
General Manager
m: 0411 625 998

Market Updates 24/04/2017

EUR surged after an early counting of ballots in the first round of the French election showed that centrist Emmanuel Macron and the National Front’s Marine Le Pen were on target to reach next month’s run-off. EURUSD was trading above US$1.0929.
While in the local market AUDUSD is down 0.8% to US $0.7563, and it traded as low as US $0.7492 earlier from an overnight peak of 0.7563 due to recent softness in commodity prices.
DATA RELEASES THIS WEEK:
MONDAY:
EUR – German Ifo Business Climate
WEDNESDAY:
USD – CB Consumer Confidence
AUD – CPI q/q
CAD – Core Retail Sales m/m
THURSDAY:
USD – Crude Oil Inventories
USD – Core Durable Goods Orders
USD – Unemployment Claims
AUD – RBA Gov Lowe Speaks
JPY – Monetary Policy Statement & BOJ Outlook Report
EUR – ECB Press Conference
FRIDAY:
CHF – SNB Chairman Jordan Speaks
GBP – Prelim GDP q/q
CAD – GDP m/m
USD – Advance GDP q/q
Andrew Law
General Manager
m: 0411 625 998

Market Updates 18/04/2017

Positive economic data from China has boosted stocks in US with most European & Australian markets closed during the Easter Monday trading session. Retails sales in China grew by 10.9% which helped strengthen the AUDUSD pushing it through $0.76 overnight before coming down to $0.75 this morning.
UK inflation held at 3 years high around 2.3% supporting the GBP and seeking AUDGBP lower again for nearly a 12th straight day. UK economy has continued to rebound in the wake of Brexit and the triggering of Article 50 last month.
DATA RELEASES THIS WEEK:
 
Tuesday
AUD – Monetary Policy Meeting Minutes
USD – Building Permits
Thursday
USD – Crude Oil Inventories
NZD – CPI q/q
USD – Philly Fed
Manufacturing Index
USD – Unemployment Claims
Friday
GBP – BOE Gov Carney Speaks
USD – Treasury Sec Mnuchin Speaks
GBP – Retails Sales m/m
CAD – CPI m/m
Regards,
 
Andrew Law
General Manager
m: 0411 625 998

Market Upate 10/04/2017

The AUD has fallen to near a 3 month low trading below $0.75 USD in the wake of a weaken price of iron ore and strengthen of USD.  Investors will be looking for trading news on Thursday with Australia releasing unemployment numbers and later that evening the release of US unemployment claims follow by consumer sentiment, CPI figures and US retail sales numbers.
DATA RELEASES THIS WEEK:
Tuesday
USD – Fed Chair Yellen Speaks
GBP – CPI y/y
Wednesday
CNY – CPI y/y
CNY – PPI y/y
GBP – Average Earnings Index 3m/y
GBP – Unemployment Rate
Thursday
CAD – BOC Monetary Policy Report
CAD – BOC Rate Statement & Overnight Rate
CAD – BOC Press Confidence
AUD – Employment Change & Unemployment Rate
CNY – Trade Balance
USD – Crude Oil Inventories
USD – Unemployment Claims
Friday
USD – Prelim UoM Consumer Sentiment
USD – CPI m/m
USD – Core Retails Sales & Retails Sales m/m
For further information please contact one of our offices.
Andrew Law
General Manager
m: 0411 625 998

Article 6 April 2017

Market Summary:

Reserve Bank left cash rate unchanged at 1.50% on Tuesday this week. Investors will be focusing on tonight’s economic data and announcements and it all begins with UK Services PMI at 6.30pm. Services PMI is tipped to remain above 50, the point which denotes expansion, but only marginally at 53.5.

Elsewhere tonight we’ll see the latest preliminary non-farm employment figures out of the U.S with ADP numbers due just after 10pm AEST. The market is expecting to see around 184K new jobs, which would be less than the previous months figures but still on pace with recent months’ results. Obviously a bumper number here will provide some rally in the US dollar, particularly against the Aussie – AUD/USD has fallen again but is holding onto 0.75 for the time being. Investors will also be eyeing the all important numbers due out tomorrow in US for the non-farm employment & unemployment rates.

DATA RELEASES TODAY:

GBP – Services PMI

USD – ADP Non-Farms Employment

USD – ISM Non-Manufacturing PMI

USD – FOMC Meeting Minutes

DATA RELEASES TOMORROW:

GBP – Manufacturing Production m/m

CAD – Unemployment Rate

USD – Non-Farm Employment Change & Unemployment Rate

展望 25 July 2016

澳元美元上周跌幅150点。
本周澳洲關注星期三CPI。(消费者物价指数)

在澳洲联储会议纪要显示,如果需要時,央行准备降低利率來压下澳元。這星期的CPI如果公佈较弱數據,或許將會降息。

随着美國下半年美联储有加息一次的可能,货币還是有利于美元。(星期四美联储利率公布。)

 

展望七月

英国退欧潮减退下,渐渐地迎接新财政年。七月份开始有美国独立日假期,澳洲大选效果,星期二澳央行公布利率决议,星期五美国非农就业数据等等足以在北方暑假下推动市场。

英国退欧出现连锁效应,各国央行出现不同看法,市场认为美国今年都不一定加息,如果这看法成立,澳央行或许提前减息配合世界经济不利因素,虽然澳洲可减息空间不多,但海外央行已出现负利率,这已经不能说为没有减息空间了。世界央行低息政策已成为趋势。

 

 

wy

展望 23 June

今天英国公投结果将今晚发布,是留是离去将改变投资者的交易模式,甚至有央行取决于结果来作进一步的金融政策决定。我们拭目以待。

英国全民公投后,澳大利亚还有财政年度结算即将到来,七月份政党大选,政治不确定性是澳元持观望表现的因素之一。

七月份在北半球的学校暑假,也是投资者交易比较少之一种理由,因为这可以和家人一起同过假期,这是季节性的事情。