Conservative consumers, stagnant wage growth and a slowdown in housing construction has led to a major write-down in government revenue.
Speaking with Sky News following the delivery of the mid-year fiscal and economic outlook, Deloitte Access Economics Partner Chris Richardson said the smaller revenue take was the major cause of the budget write-downs.
“As the economy weakens, the amount of tax we are otherwise going to pay is coming off as well – for example, less personal tax, is one of the more notable revisions,” Mr Richardson said. “Not just less spending by consumers but less housing, apartments being built affects the GST take as well.”
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