The Federal Election and the budget - what do the main parties say?

It is now just over one week since the Liberal party handed down their budget, followed by the Labor party taking centre stage the next day with their reply speech.  Since both of these announcements, Malcolm Turnbull confirmed what we have suspected for some time, by calling an early election for July 2, 2016.
 
So what does this all mean?

In the final week of parliament prior to setting in place a double dissolution, none of the budget measures announced on budget night by the Liberal party were introduced to Parliament.  As such, at this stage with the government in caretaker mode no new major undertakings are generally commenced or agreed to except after consultation with the alternative government, the opposition.  Now however, the focus sharply turns to the election campaigns where the budget measures announced by the Liberal party and those outlined in the reply speech by the Labor party, will underpin each party’s election platforms.  As it stands the proposed changes to superannuation appear to be the most contentious, with the Liberal party’s proposed $1.6m cap on superannuation pension funds and the retrospectivity of that measure, causing much debate.  Labor has been silent to this point on the detail of what superannuation changes they will make, whilst acknowledging however that they “will close the unsustainably generous superannuation loopholes at the top end.”  Further, they state that any changes to superannuation will not be retrospective.

Download a PDF copy of our infographic summary explaining the budget positions of the Government and Opposition.

Of course much will be promised by both parties over the next several weeks in the lead up to the election, but so much will remain uncertain until we know the construct of both the House of Representatives and the Senate.  If the current opinion polls are true to form then there is a chance that whichever party gets into power post the election on July 2, they may well hold a slim majority of power.  If that is the case what government proposes to introduce as legislation may well be altered through the course of debate, political jostling and negotiation with minor parties and independents.

Regardless of the election outcome, Moore Stephens remains committed to ensuring our clients are kept abreast of changes that will have an effect on their individual circumstances.  If you would like to discuss any of the issues raised through the budget process and beyond, please consult your Moore Stephens representative.

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