Missed today’s news? We’ve got your back. Check up on the news that matters to small business owners on Thursday, September 19, 2019.
Could Australia benefit from Brexit?
Australia is currently the UK’s seventh-largest trading partner, but we could soon be moving to the top of the heap with the UK Trade minister Liz Truss saying she expects the British government to make a trade deal with Australia following its exit from the European Union. Truss is currently on a whistle-stop tour of Asia Pacific nations, drumming up support for trade agreements with a post-Brexit UK. Commonwealth countries are expected to pick up much of the slack in UK trade relations with Australia expected to benefit from new deals relating to agricultural trade which had been stymied by the EU.
“The reason that I have chosen to make Australia one of the first countries I have visited as Trade Secretary is because that it is an absolute priority to get on with this trade deal,” Truss told reporters.
Are we saving or spending?
Are we currently a nation of savers or spenders? Maybe both. Two of the big four banks have come out with contradictory data. NAB is predicting a sales slump on July numbers with only a slight lift in retail sales. NAB says the cashless transaction data implies Aussies are saving their money rather than splashing their cash. However, CBA has drawn from the Household Spending Intentions survey and Google Trends search data, to suggest consumers are spending their tax cuts, which is likely to drive sales up by one per cent. What both banks agree on, the economy is weak and urge the RBA to deliver further interest rate cuts.
Small budget deficit bodes well for the government
The federal government has announced the 2018/19 budget deficit and it has slashed billions from the bottom line with Australia just $690 million in deficit. Previously the government had predicted close to $5 billion deficit for the year. Treasurer Josh Frydenberg said the Government took in $13.8 billion more than anticipated and expects to return Australia to surplus this financial year.
“These outcomes demonstrate the Government’s economic plan is working and confirming the budget is on track and will be back in the black for the 2019/20 year,” he said.
“Importantly, Australia has completed its 28th consecutive year of economic growth, and maintains its triple-A credit rating, with more than 1.4 million jobs created since we came to Government.”