The Reserve Bank of Australia is still on track to lower borrowing costs this year, but changes to the stage three tax cut package could delay the first rate cut by a couple of months.
Economists said the stimulus measures – which lower the benefits for wealthy households to give greater tax relief for low- and middle-income earners – would likely have minimal impact because the tax cuts were already factored into the central bank’s forecasts.
Joanne Tran is a markets reporter for The Australian Financial Review in the Sydney newsroom. Connect with Joanne on Twitter. Email Joanne at jo.tran@afr.com