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.

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Latest Updates

Retirement

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

Shares

Boom, bubble or alarm?

After a stellar 2025 to date for equities, warning signs - from speculative froth to stretched valuations - suggest the market’s calm may be masking deeper fragilities. Strategic rebalancing feels increasingly timely.

Property

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Economy

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Shares

Is the iPhone nearing its Blackberry moment?

Blackberry clung on to the superiority of keyboards at the beginning of the touchscreen era and paid the ultimate price. Could the rise of agentic AI and a new generation of hardware do something similar to Apple?

Fixed interest

Things may finally be turning for the bond market

The bond market is quietly regaining strength. As rate cuts loom and economic growth moderates, high-quality credit and global fixed income present renewed opportunities for investors seeking income and stability. 

Shares

The wisdom of buying absurdly expensive stocks (or not!)

Companies trading at over 10x revenue now account for over 20% of the MSCI World index, levels not seen since the dotcom bubble. Can these shares create lasting value, or are they destined to unravel?

Sponsors

Alliances

© 2025 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.