To the surprise of the nation, it was the Coalition that won over the majority of voters back in May, and is now in for a third consecutive term.
Predictions had completely missed the mark in predicting a Labor win. For a campaign that waged a war on the high-earners and tax dodgers, as well as fighting to better protect the environment and jobs, it didn’t deliver a knockout punch for voters.
A Liberal win was seen as a win for wealthy Australians, and seemed to signal business as usual for the party on most policy fronts, including the environment. The environment was meant to be an election-swaying agenda – either continue down a path of inaction or face up to the facts. In the end we voted to continue to do very little, if anything at all.
So with our pollies set to return to Parliament in July, let’s take a look at what the Coalition’s third term means for you.
1. Home owners
With the uncertainty of the election having passed, and yet another rate-cut (the lowest in history), things are predicted to settle in the months after the election. Though overall it’s the slowest it’s been in 12 years, people continue to turn up in the major cities on auction day.
If you’re a first home buyer, the First Home Loan Deposit Scheme will help you purchase a home without a 20% deposit. The scheme will provide access to loans from financial institutions, without the need for lenders mortgage insurance. The scheme can be used in conjunction with state-based First Home Owners grants, if borrowers and the property meet eligibility requirements.
What’s interesting to note is that even Scott Morrison considered overhauling the negative gearing policy before switching and attacking Labors policies during the 2019 federal election campaign.
The new policies could serve to benefit the property market and hopefully Australia’s housing landscape. Or it could continue to fuel the demise without taking more drastic action.
2. The music industry
$22.5 million will help small businesses host more artists and cover the cost of equipment and performances. While Women in Music will facilitate mentorship programs, assisting women to make inroads in their careers. This is a great vote of confidence for the music industry in Australia, which is often underserved.
3. The Environment
The environment will be a major loser as a result of the election. This sticking point was supposed to secure the election for Labor, since the coalition has what some are saying, “no effective climate and energy policy”.
Many believed that voters would finally cotton on to the climate emergency, however this was not the case. We simply thought the cost of the environment was too high for our hip-pockets, ignoring the ultimate price we’ll all pay in the future. This is a loss for all Australians unfortunately.
4. High income earners
Those who are in the high-tax bracket dodged a bullet with their taxable incomes remaining safe under the Liberal’s tax rate freeze.
Lower-income earners will receive a tax offset, while 94 per cent of taxpayers will continue to pay 30 cents in the dollar in income tax. Some taxpayers can expect a break of just over $1000 come tax time in June.
Labor planned to collect more income tax to fund much needed services for all Australians, living up to the “advanced Australia fair” creed.
Small-to-medium business and family-run organisations will face lower taxes, boosting productivity, and helping level the competitive playing field at the same time. The corporate tax rate for small-to-medium businesses will drop to 25% by 2022, and the asset write-off will also be lifted to a value of $30,000 and apply to businesses earning up to $50 Million. This should help improve cash flow in businesses and stimulate reinvestment which will be a boon for the bottom line of smaller operations around the country.
It will be interesting to see what happens in the third term, and whether or not Scott Morrison will emerge still as the leader, or be usurped. Knowing what the policies mean for you, and how they’ll impact you in different ways, can be complicated and convoluted but it’s important to keep updated in changing times.