Andy Hutt discusses the Mid-Year Economic and Fiscal Outlook (MYEFO) for 2017/18.
The federal government has released its Mid-Year Economic and Fiscal Outlook (MYEFO) for 2017/18. At a time of year when many are gripped by the “fear of missing out” (FOMO), MYEFO contained little that would be of concern for those involved in tax.
The government projects that the underlying cash balance will return to surplus in 2020/21, and notes an increase in expected receipts up to that point, relative to the projections in the 2017/18 budget, driven by company tax and superannuation fund taxes.
The government expects its net debt to peak at around 19 percent of gross domestic product in 2018/19, reducing to around 17 percent by 2020/21.
Against the backdrop of a busy year of new tax announcements and measures, the MYEFO documents do not contain news of any additional major taxation initiatives. However the government has taken the opportunity to use MYEFO to recap on some of the measures that are under way, but not yet legislated, including:
With major tax reform looking almost certain to be enacted in the United States (US) within days, it will be interesting to see what dynamic unfolds when parliament resumes in February.