The CBA estimates that the federal government could post a combined surplus of about $60 billion between 2019-20 and 2021-22. CBA adds that the government could have up to $70 billion at its disposal for spending initiatives during the upcoming election campaign, including scope for up to $6 billion in additional tax cuts. Meanwhile, economists at NAB have flagged the possibility that the Budget will be returned to surplus in 2018-19, which is a year earlier than the government has forecast. From The Australian:
More significantly, forecasts by leading market economists of an improved bottom line would deliver the Prime Minister and Josh Frydenberg the option of a big-spending election platform, including further tax cuts to help counter Bill Shorten’s estimated $200bn tax-and-spend agenda…
