Greg Gibbs, analyst at Amplifying Global FX Capital, suggests that after a prolonged period of political instability in Australia, the surprise victory by Scott Morrison as leader of the LNC appears set to herald a new phase of stability.
“Furthermore, the balance of power in the Senate appears to offer an easier path for the LNC’s legislation through parliament.”
“The LNC was able to pass its tax cut policy that it took to the May election in the Senate without the support of the main opposition Labor Party or third largest Green Party, with the support of four out of six crossbench members.”
“The success in moving quickly forward with its tax plan, the strong position Morrisson now holds within his LNC, and the Conservative policy agenda should help boost business confidence in Australia.”
“The quickly delivered income tax cuts should directly support consumer and business confidence.”
“In the pockets of lower income earners, the fiscal boost has more chance of being spent rather than saved, adding a modest boost to GDP in the second half of the year.”