Ratings agency points to economic challenges
International ratings agency, Fitch Ratings has pointed to a slowing economy and raising unemployment as among the challenges confronting the re-election Liberal/National Party Coalition Government.
“We forecast the Federal government to reach an underlying cash surplus by next fiscal year. But a challenging economic environment poses risks to this outlook,” the company said in a post-election analysis. “The economy is slowing and the unemployment rate has inched up, which could weigh on fiscal revenues. A sharper economic slowdown could also lead to pressures for greater fiscal stimulus.”
“The likely continued need for cross-bench support in the Senate could limit the government’s ability to advance some of its policy priorities. This poses additional risks to the budget outlook and the government’s ability to tackle medium-term economic reforms,” the Fitch Ratings analysis said.
However, it said that it expected the re-election would bring broad party policy continuity in line with the fiscal priorities announced in the Government’s pre-election budget.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
