2015 Federal budget causing less concern than 2014 budget
(10 July 2015 – Australia) There has been a big drop in the proportion of Australians feeling concerned by this year’s Federal Budget.
New research from super fund-owned bank ME has revealed a partial reversal in Australians’ concerns over the Abbott Government’s second Federal Budget, announced in mid-May 2015.
ME’s national survey of 1500 Australian households revealed a 38-point fall in the proportion of Australians expecting the Budget to have a negative impact on their financial situation over the next 12 months, down to 29 percent in late May 2015 from 67 percent a year ago.
Following the 2014 Federal Budget, household financial comfort took a negative hit with households concerned about proposed tightening of government assistance, as well as from rising negativity around the job market, low wage growth and falls in savings.
Fast-forward to June 2015 and the extremely negative response to the Budget has significantly eased.
As a result 60 percent expect their household to be unaffected by the 2015 Budget compared to only 29 percent from the 2014 Budget.
However only 11 percent of Australian households expect to be better off from the 2015 Budget, compared with 4 percent a year ago indicating the Budget continues to have an overall negative impact on households.
ME consulting economist, Jeff Oughton said a much smaller proportion are still worried about the Federal Government’s proposed Budget reforms.
“While 29 percent of the 1500 people polled still expect the Budget to have a negative impact on their financial situation, this was down from about two-thirds of Australians who were fretting in late May 2014,” he said.
The bank said self-employed were less negative than other workers and self-funded retirees were feeling better than other retirees.
“Worries about the flow-on effects of the Budget has had less impact on the self-employed, compared with other employed persons – which could be due to the small business package.
“That said, about 21 percent of self-employed still expect to be worse off, compared with 34 percent for part-time employees and 24 percent for full-time employees.
This is significantly down from late May 2014, when 62 percent of self-employed, 70 percent of part-time and 59 percent of full-time employees expected to be worse off.”
Self-funded retirees are also feeling less concerned (17 percent worse off) than those on a government-funded pension (36 percent worse off) or those on a combined self-funded and government-funded pension (30 percent).
Although concerns are easing with the majority of Australians, the negative impact of the Budget on the financial situation of Australian households more dependent on government assistance, remained higher with 38 percent of single parent households feeling concerned, 39 percent of tertiary students and 41 percent of those unemployed.