The Australian Financial Services Union says the government’s budget forecasts for 2019 and 2020 are a poor indicator of future growth.
The union’s executive director, Chris Hartmann, said there was a “significant risk” that the Government’s forecast of GDP growth of 4.9 per cent in 2019 and 2021 would be revised downward.
Mr Hartmann said he expected the economy to contract in 2019 at a rate of 1.5 per cent.
He said the impact on business growth was significant.
“If the forecast is 2.2 per cent then it would be a negative sign,” he said.
“It would mean our industry would be losing a lot of money.”
The budget will be good news for business, but the impact is substantial.
“The Australian Competition and Consumer Commission has also warned that the budget forecasts would be less reliable than other forecasts because they would not take into account changes in consumer spending.
Mr Footman said the Government was not being realistic about how much of its projected spending cuts were in line with what consumers would actually do.
A spokesman for the Commission said the survey data showed people were “still spending on these essentials in the most recent three months”. “
While the survey suggests that Australians spend less on their health care and other goods and services, the data also show that spending on education and social welfare are higher,” the report said.
A spokesman for the Commission said the survey data showed people were “still spending on these essentials in the most recent three months”.
He said a higher proportion of households were spending on “essential items” such as fuel, food and clothing, than in previous years.
“The Coalition has consistently maintained that it is in the best interests of business and consumers to focus on investment, productivity and growth,” the spokesman said.
The spokesman said the budget forecast showed businesses were “losing money”, adding that they had to cut costs.
“What the Government has done is to reduce their tax rate,” he added.
Mr Shorten, who is also Treasurer, said the Coalition’s budget was the “last thing Australians need”.
“If they think it’s a good budget, it’s not because they like the President of the United States, or their friends,” he told ABC Radio Melbourne’s Today program.
“But because it’s the last thing they need.”
The Treasurer said the Federal Government had the “power to create jobs” and would continue to invest.
He also said he would continue pushing for a “fair and progressive tax system” to “reform the tax system”.
“It’s a really good budget and I’m glad the Government is making it,” he says.
The Treasurer also said the Labor Government would work with the Opposition to raise the GST to reflect inflation and to keep the Federal Reserve’s interest rates at zero.