The growth in the share prices of JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) has started to taper off.
Will the budget announcement help these two ASX growth shares bounce back?
JBH share price
HVN share price
Potentially lower tax for low and middle-income earners
It appears likely that the government will extend the low and middle-income tax offset.
This tax offset is an end of financial year rebate of up to $1,080 for singles and $2,160 for dual-income couples.
These tax cuts were brought forward as a result of the pandemic to further assist these income brackets.
What this means for retailers
Both JB Hi-Fi and Harvey Norman have been big beneficiaries of the pandemic as disposable income rose due to government stimulus and people diverted income from holidays to household expenditure.
If the government decides to roll over the tax offset to next year, this will provide a solid boost in disposable income.
Also, it seems unlikely that borders will reopen this year, which may prompt people to again spend on consumer goods.
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