Tax cuts in Budget 2015 would be premature

In relative terms, the Government is being inundated with good news on the economic and financial front at the moment.

Most economic indicators have been moving in the right direction, and the news from the two main banks, for the first half of the year, has been more positive than we have seen for quite some time.

Given that we are now well into the second half of the electoral cycle, this represents good news for the parties of Government, and provided the recent trends are maintained or built upon, there might just be a relatively positive backdrop as they face into what could be a very politically tricky plebiscite.