Last week the overnight cash rate in Australia was reduced from 4.25% to 3.75% because of the slowing economy. Mortgage rates have fallen as a result. Earlier this week Australia released their Budget which gave some benefits to the average Australian. The Treasurer said he was passing on some of the gains from the mining boom. Company superannuation contributions were increased to 12% and there are tax decreases for incomes up to $80,000. Our Budget will be presented later this month – it is unlikely to pass on any benefits to the average consumer. What we need here is some radical economic reforms just to keep up with Australia. A relatively positive Budget across the Tasman and a negative one here will do nothing to stop those Kiwis from moving across the ditch.
