More than 80 per cent of the stock market has dropped over the past 24 hours, according to data compiled by the Bureau of Statistics.
The drop has been driven by a fall in the mining sector and falls in the construction sector.
The drop in mining has been particularly severe, with the price of the commodity falling more than 90 per cent from $1,300 per tonne in June to $1.076 in the latest 12 hours.
However, the sector has recovered since then, with prices rebounding on the back of a drop in the cost of construction.
Topics:stockmarket,industry,business-economics-and-finance,finance-and–trading,business,businessyear,stocks,stocks-and-$,markets,economy,wealth-pacific,tas,brisbane-4000,brisbanon-4215,sydney-2000,brissea-2200,qld,melbourne-3000,southport-4225,port-augusta-5700,bristol-5305,melburn-4306,greensboro-2850,goulburn-4806,grafton-4284,gwent-4501,barnaby-30-35,snoqualmie-0800,south-eastern-2550,nsw-6000,lidcombe-45-10,hobart-7000,lincoln-30,warrnambool-4000 source ABC Business (AU), The Conversation (AU)) title What you need to know about the GST return on investment article A big reason for the sharp drop in stock prices is the GST, which will be introduced on March 1.
Under the GST system, businesses pay GST on goods and services sold and the GST rate on goods that are consumed.
A reduction in the GST on certain goods or services will lower prices.
The main reason for falling stock prices in recent days has been the introduction of the GST.
GST will also have a big effect on Australian property values, with many property investors expecting a decline in property prices and a return to growth.
The stock market dropped about $1 billion last week, according the Australian Bureau of Economics, which had expected it to fall by about $700 million.
While it is still early days for the Australian economy, there are a number of indicators that are starting to show signs of life.
According to the Australian dollar index, the Australian stock index is down about $9.70, or 5.2 per cent, since late April.
The currency is down as much as $0.85 against the dollar since April 1.
While it may seem like a big drop, it is not unexpected, as a reduction in GST revenues has led to a sharp fall in government expenditure.
This has had a major impact on spending on things like healthcare, schools, housing and transport, and the economy is starting to look stronger.
The Federal Government has been forecasting the GST will generate $7 billion in new revenue in 2017-18, but this has been offset by an increase in business taxes.
But the Reserve Bank will not let this happen, so the Government will need to get its fiscal house in order by March 1 to get back to where it was before the GST cuts began.
“The key message is that the Government is committed to reducing the GST burden and reducing the burden on households and businesses,” said Treasurer Joe Hockey.
“[But] the key to success is a strong economy and that’s where the Federal Government needs to put more resources into ensuring growth, jobs, growth and more growth for our people, our economy and our communities,” he said.
What are the key indicators that you need for your investment decisions?
The key indicators are:GST is expected to reduce income tax receipts, which are used to fund government spending;The Reserve Bank is forecasting the Australian GDP growth will be 1.5 per cent in 2017 and 1.8 per cent for 2018;And the Australian housing market is looking strong.
Investors need to keep in mind that the current Government is not yet in control of the economy, so there is a lot of uncertainty in the markets.
But the data suggests the Australian economic outlook is improving.
If you want to get a better understanding of the market conditions, check out our ETF calculator.
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