Australian Growth - Made in China

Our patchwork economy continues with unemployement in WA dropping below 5%. in other words running at full employment on a boom that is made in China.  For the rest of us matters are not so good and particulary for investors. 

Its genenerally considered the governments budget is contractionary, and this indicates Australians will have less money in their pockets to spend, although the government estimate they will be creating some 500,000 new jobs that will benefit right around the country. There is also a housing shortage with strong skilled immigration expected that is forecast in the region of 185,000 new migrants in total which might help the slow retail sales and the “made in China” boom.

For now however, there are plans to reduce middle class welfare entitlements, the flood levy, etc. But importantly increasing costs are on the way relating to electricity, water, food etc. This may mean we will have less income and higher expenses compounded by the likely event that the Reserve Bank will increase interest rates in due course.

It seems many Australians will conclude they are better off by not spending or investing and are more likely to save. There is also the thought the government has based its forecast of returning to a surplus budge during financial year 2012-13 has been based on continued exceptional growth and trade from China.

There is no other country that is so dependent on its future from just one country as Australia.   There is also a housing shortage with strong skilled immigration expected that is forecast in the region of 185,000 new migrants in total which might help the slow retail
sales and the “made in China” boom.

With the budget now announced we can help ourselves by claiming all our legitimate personal and PAYE tax deductions.  Xpnsit keeps notes of the tax changes each financial year to assist their users to claim back tax. After all, it’s your money – get it back.