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Australia's budget outlook facing important test-S&P

Published 15/12/2015, 02:10 pm
© Reuters.  Australia's budget outlook facing important test-S&P

SYDNEY, Dec 15 (Reuters) - Standard & Poor's said on Tuesday the next six months would be important for Australia's budget outlook with tax reform under consideration and spending cuts jammed in the Senate.

Responding to a mid-year review of the budget from the Liberal National government of Malcolm Turnbull, the ratings agency said the fiscal outlook was weaker than presented just a few months ago with deficits forecast to be larger.

""The next six months could have significant implications for Australia's budget outlook," said S&P.

"Negotiations on tax reform appear to be drawing to a conclusion. And the federal government is due to release its first budget under its new leadership, which we expect would signal the current leadership's economic and fiscal policy priorities."

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