June 2019

Posted by Anton Murray Consulting on . Posted in 2019

With every election we hear similar things from our clients: “We’re just waiting to see what happens after the election.” It’s common for people to be wary around election time. A new budget and a new government always has various implications for the financial services sector, even more so in the wake of increased scrutiny from the Royal Commission.

But the election is over and the dust has settled, Prime Minister Scott Morrison and the Coalition will govern for another term, and Anthony Albanese has replaced Bill Shorten as leader of the opposition. So what does that mean for the financial services sector?

The overall sentiment from analysts and journalists is that things should mellow out for the sector. No change in government means Josh Frydenberg’s budget will be implemented and amendments to negative gearing and franking credits won’t go forward. Particularly for the SMSF industry, this is welcome news. More general market responses were also positive, with major banks seeing a boost in share prices in the week after the election.

For our clients, the increase from $25k to $30k of assets able to be immediately written off will be a nice bonus, and for candidates and clients, income tax cuts will help pad wallets in the coming months.

With all that said, we’re not out of the woods as far as economic uncertainty goes. As expected, the Reserve Bank cut rates earlier this week and unemployment crept up last quarter. Wage growth continues to stay low and we’re officially in per capita negative GDP growth. While punters might feel slightly more secure for the next few months, it’s unquestionably still rocky territory.

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