A teal wave surged across Australia, one handing Labor control of the nation while decimating the Liberal Party. Never before has our country seen a Federal election like 2022, Independents wreaking primary and preference havoc, signalling their collective arrival as a force in Australian politics. Is this an aberration in an atypical political climate or a sign of things to come?
In an unusual turn, now Prime Minister Anthony Albanese saw Labor’s primary vote contract to a historic albeit victorious low, a downgrade on that which saw the Rudd Government obliterated in 2013. Enter the teal and green armies, preference machines who simultaneously walloped the outgoing Morrison Government while converting poll day popularity into representative status.
Interestingly, the more politics changes the more it stays the same, with grass-roots local campaigning the key to Independent candidate success. Furthermore, the Greens’ message appears to be resonating with young voters, the party’s performance its best ever, significantly outperforming even its wildest expectations.
Whatever the case, voters appear dissatisfied with the major parties and voted accordingly.
The Prime Minister has his work cut out as the newly installed government will be forced to deal with the lingering effects of the COVID-19 pandemic while implementing its five-point economic plan. Inheriting one of the better-performing pandemic economies, Federal Labor has a myriad of pressing items to address, not least of which concerns interest rate rises, inflation, cost of living, reigniting international trade, securing supply chains and reviewing the nation’s international commitments.
Let’s take a look at some of the Albanese Government’s key policy promises.
Aged Care
Labor has promised registered nurses will remain on site in residential aged care facilities while mandating every resident receives an average of 215 minutes of care per day. Furthermore, implementing mandatory nutrition standards ensuring food delivered to residents is of a higher quality is a key election promise.
Child Care
The Federal Government will invest in cheaper childcare with the aim to reduce cost pressures for families while simultaneously boosting GDP through higher workforce participation. Significantly raising the means-tested threshold for subsidised childcare makes this one of Labor’s most expensive campaign commitments.
Education
To address Australia’s skills shortage, better training through fee-free TAFE was put forward, supported by making more university places available to equip Australians with critical skills needed in our transitioning economy.
Energy
Labor intends to invest in cleaner and cheaper energy through its Power Australia policy, cutting power bills, unlocking investment and creating new-economy energy jobs in regional Australia. Furthermore, climate change was a key battle with a $20 billion injection to fast-track upgrades to the national electrify grid, a move designed to support renewable energy supply requirements. Designing a National Electric Vehicle Strategy is on the horizon, as is the installation of 400 community batteries across the nation. In another key commitment, the Government has committed to lowering emissions by 43 per cent by 2030, something widely supported by business.
Federal Integrity Commission
While light on specifics, Labor has promised to establish an integrity commission by year-end, one tasked with investigating potential corruption committed by MPs and members. The commission would be similar in scope and nature to a standing royal commission.
First Nations
Labor has pledged to implement the full Uluru Statement, including the Voice to Parliament.
Health Care
Lowering the cost of prescription medicine was a hot election topic, one which Labor committed to for older Australians requiring a lot of medicine. Furthermore, in an effort to free up emergency rooms, the Government promised to create 50 Urgent Care bulk-billed clinics, with more funding designed to extend open hours and treatment capabilities. Addressing inadequacies within the NDIS has become a top priority.
Housing & Home Ownership
Labor’s shared equity proposal (known as Help to Buy) put forward the promise of making home ownership more affordable, seeing the Commonwealth purchase up to 40 per cent of a home (capped at an initial 10,000 participants) while a commitment to renters in the form of new social housing properties is on the agenda. The Government will also look to establish a $10 billion Housing Australia future fund.
Infrastructure
To modernise our economy, the Government has committed to upgrading the NBN, ensuring a fit-for-purpose digital backbone promoting the capture of digital economic opportunities, something estimated to be worth $207 billion in GDP per year by 2030.
Manufacturing
The Government has pledged to stimulate the economy through its Future Made in Australia initiative utilising the National Reconstruction Fund, opening up billions in private investment, securing supply chains and revitalising regions through more jobs and opportunities.
As you can see, the new Federal Government has its work cut out for it, with the above-mentioned being a small slice of its significant project pie. As a rule of thumb, my attitude toward politics has always been a work-with-the-landscape-in-front-of-you approach, and as an accountant and advisor, to best service my clients, getting across the detail of impending changes as fast as possible has been key.
Needless to say, the election result has thrown up some interesting business developments, topics worth broaching with your trusted Nexia Australia advisor.
