Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Cuffelinks Budget Special - and our 300th Edition

  •   3 April 2019
  •      
  •   

Direct from the Budget Lockup tonight, and to coincide with our 300th Edition, here are the highlights of the 2019 Federal Budget. There were no major changes for superannuation. 

In the next few days, Scott Morrison is expected to call an election, widely tipped for mid May, and nobody should doubt the context of Josh Frydenberg's first budget. The Government needed to strike a balance between retaining a surplus after $360 billion of deficits in the last decade, and spending to win votes. Treasury coffers have been boosted by strong commodity prices and personal taxes rising faster than wages. The political reality is a budget delivered at a time when the most recent Newspoll has the Government trailing 53 to 47 on two-party preferred.

Higher tax receipts have increased revenue by $55 billion more than expected in the last two years, and while voters like handouts, they also like fiscal responsibility. As Frydenberg said on the weekend, "There are lots of people we'll be speaking to on election night", which gave away the framing of the budget.

Budget 2019 delivers the first surplus since 2008, personal tax cuts, cash handouts for energy payments to welfare recipients, and plenty of money for infrastructure projects. In our coverage, we summarise the highlights and initiatives and the key superannuation and investment implications.

Ashley Owen also gives his background with an excellent historical context and graphic, and Graeme Colleyprovides a quick wishlist of the changes the superannuation industry was hoping for in the Budget. The Treasurer also announced new rules for super flexibility and energy assistance payments.




Government revenues as a share of GDP have risen to 24.9% now from 22.5% in 2013, driven by tax bracket creep. It finances the spending largesse which will not finish with the budget, as we can expect a steady stream of new announcements in the lead up to the election. At the moment, our minority Government holds only 73 seats, and the expanded House of Representatives will have 151 seats. With the speaker excluded, a party will need 77 seats for a majority.

We'll know in a little over a month whether this budget will win enough votes. The Coalition's challenge is that Labor's policies on franking credits, negative gearing and capital gains tax will give it more money to spend. Chris Bowen has announced a 'mini Budget' later in 2019 if elected.

Graham Hand, Managing Editor

(We will add more detailed commentary and papers from our sponsors to our website over the rest of this week, but we will not publish our usual newsletter on Thursday).

 

For a PDF version of this week’s newsletter articles, click here.

 

  •   3 April 2019
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

Latest Updates

Economy

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Superannuation

No, Division 296 does not tax franking credits twice

Claims that Division 296 double-taxes franking credits misunderstand imputation: franking credits are SMSF income, not company tax, and ensure earnings are taxed once at the correct rate.

Investment strategies

Who will get left holding the banks?

For the first time in decades, the Big 4 banks have real competition in home loans. Macquarie is quickly gain market share, which threatens both the earnings and dividends of the major banks in the years ahead.

Investment strategies

AI economic scenarios: revolutionary growth, or recessionary bubble?

Investor focus is turning increasingly to AI-related risks: is it a bubble about to burst, tipping the US into recession? Or is it the onset of a third industrial revolution? And what would either scenario mean for markets?

Investment strategies

The long-term case for compounders

Cyclical stocks surge in upswings but falter in downturns. Compounders - reliable, scalable, resilient businesses - offer smoother, superior returns over the full investment cycle for patient investors.

Property

AREITs are not as passive as you may think

A-REITs are often viewed as passive rental vehicles, but today’s index tells a different story. Development and funds management now dominate earnings, materially increasing volatility and risk for the sector.

Australia’s quiet dairy boom — and the investment opportunity

Dairy farming offers real asset exposure, steady income and long-term growth, yet remains overlooked by investors seeking diversification beyond traditional asset classes.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.