2018 Australian Federal Budget – Winners and Losers

On 8 May, the federal government released its proposed budget for 2018, announcing tax cuts for lower income workers, a continuation of planned infrastructure spending and a focus on aged care.
As an investor, it’s important to know how the federal budget may affect the stock market and the operating environments of the companies you’re invested in.
From beer to banking, we’ve put together a list of winners and losers to give you a guide to which industries might be impacted by this year’s budget.
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Winners

Construction and engineering

The government plans to spend big on infrastructure, which could reap a big windfall for the construction and engineering sectors.

Open banking

Funding has been committed to establish a Consumer Data Right, a necessary building block for the progress of Open Banking and increasing innovation in the fintech sector.

Retail

Tax cuts for middle and lower income earners could bring good news for retailers.

Craft breweries

Craft brewers will no longer pay an additional tax on small beer kegs, allowing them to compete with larger beverage companies.

Losers

Tech giants and foreign companies

The government has moved to further its crackdown on tax avoidance by multinationals and tech companies by closing more loopholes.

Health stocks

As the government provides funding for elderly people to stay in their homes, rather than in nursing homes or retirement villages, aged care stocks could suffer in the long term.

Renewable energy

Renewable energy companies could take a hit as the government announced the emissions reduction target will remain at 26-28% and the current subsidy scheme for renewable energy will be phased out from 2020.

Related Reads

Why Budget Day is Important for Investors

Budget 2018: Super changes could save young people $500+ per year


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