Deloitte: Falling commodities, house prices to smash Budget

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By Leith van Onselen

The lesson that the federal government should not use a short-term cyclical revenue windfall to make structural cuts to taxes has been laid bare by Deloitte’s latest Business Outlook report, which projects that state and federal budgets will be hit hard by falling commodity and house prices. From The Guardian:

In its June quarter Business Outlook report Deloitte suggests rising global interest rates are combining with a bout of bank caution on lending that will accelerate falling house prices…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.