The 2013 Australian Federal Election Result - Coursework Example

Student’s name) (Course code+name) (Professor’s name) (University name) Table of Contents Table of Contents 2 Section One: Election Promises 3 v.Minerals Resource Rent Tax (MRRT) 4 Section 2: The election outcome 5 Section 3: implications of election outcome 6 Summary 8 Reference 9 Section One: Election Promises Though there were several parties in 2013 federal election in Australia, there were only two main contenders who were battling it out. The two main parties were Labor party lead by Mr. Rudd and the Coalition party led by Mr. Abbot. During their campaign, they gave several promises ranging from economic, social and political promises (AFE, 2013). In the campaign promises, the two major parties have given out promises which will cost tax payers money to a tune of $ 6.7billion in the next four years. Some of the promises which relates to personal finances includes. i. Parental leave The labor party promised to stick with the current leave policy while the coalition party has come out with a more comprehensive and is regarded as one of the bold and most expensive election promises. They promise a 26 week leave for mother with maximum annual earnings of $150,000, they will also pay superannuation something which is not offered by their opponents. ii. Personal income tax The labor party promises tax cut on personal income as this will form part of the clean energy package for the household, the ruling party pledges to continue with the second face from 2013-2016 . The Coalition party on the other hand has promised reduction on the income tax and pledges that the Coalition government will pay it and this will exclude the carbon tax package. They argue that this will reduce the marginal tax rates mostly to the low income earners while increases the marginal income tax earners for those who are earning over $1million. iii. Superannuation The ruling Labor party has pledges changes in the tax rate for those who are earning$100,000 at a 15% rate. They will also ensure that superannuation contribution increased to $35,000 per anum for aged workers. The Coalition party on the other hand has promised to deliver unexpected changes to the fund. In the initial phase, it will reduce the guarantee charge by 9-12% and in the second phase is to scrap it out for the low income earners since it was to be paid by MRRT iv. Company tax The ruling Labor party has promised to give the mining tax package by cutting company tax from 30% to 28%. The Coalition party on the other hand has promised to reduce company tax by 1.5% by 2015 v. Minerals Resource Rent Tax (MRRT) The ruling labor party has pledges to stick to the current MRRT tax while the Coalition has promised to scrap out the MRRT tax though this will make them to delay reduction in superannuation guarantee charge. vi. Carbon tax The ruling Labor party has promised to change the carbon tax with emission scheme and this will take effect from 2014/2015 budget. The Coalition party on the other hand has promised to scrap out the carbon price during their first term in the office. Section 2: The election outcome Before the federal Australian election of 2013, the economy of Australian was performing quite slowly. The country GDP was steadily growing at annual growth rate of 2.6% though the total Australian economy is currently 15% bigger than the same economy in 2007. This is a sharp contrast to Britain economy which shrunk by 3% for the past three years (AFE, 2013). There was a big turnout in Queensland during Federal Election 2013. The Labor party managed to scope 6 seats while the rest of the seats went to the Coalition lead by Mr. Abbott. The turnout was one of the highest in the Queensland since ever with the majority voting for opposition and not the government ruling party, labor party. Through early morning, electorate queued to decide for the new management for their country, the election process was smooth and efficient with voters well organized and determined to choose the direction of their country. In the local scenes, the Coalition took most of the local seats with highest number of elected leader’s new comers knocking out the old politicians. The election process was efficient with the pool leaders conducting one of the most transparent pools in the world. The result was amazing and it was the opposite of the expected result. For example, I was expecting that the Labor party would take a land slide lead and take majority of the seat in the local areas with at least 8 seats. The actual result was that the labor party managed to get only six out of possible eight sits. This was contrary to the usual federal elections where it was believed that labor party would win since it was the ruling party (AFE, 2013). Section 3: implications of election outcome After the Coalition party forms the new Australian government, they have promised stronger economic growth and performance which will enables citizens to live within their means. Economic growth will ensure greater job security, reduction in the cost of living and the government will have less debt through improves budget bottom line. The coalition party will be able to actualize this promise through embarking on infrastructure development agenda and cutting labor cost which will ensure reduction in the budget spending (Dr Shane, 2013). The infrastructure package marks the coalition final part in the comprehensive economic recovery plan which will ensure a boost in jobs creation, economic growth and efficient production process. The coalition party policies promises which will directly affect the individual and government finances independency includes tax cuts, increase in health and education expenditure during budgeting and increase in pension fund. These policies will make total saving goes up to over $33 billion in one fiscal year (Dr Shane, 2013). The Coalition government will abolish carbon tax which will improve economic growth in mining sector and this will be based on the guidelines given by the treasury on the macro economic impact of the carbon tax The Coalition government will further increase their spending in the defense and national security, education sector and health sector. This will result to economic and social well being of the nation. Diver’s economy which is competitive will be another key pillar in key development. The policies and their implementation strategies here are; Growing economy- through good infrastructure both in road net work, internet access, good housing will be a key policy which will reduce the expenses by individuals. This will target low income earners, middle income earners and the population as a whole. Major action point in this policy includes; reform in taxation, funding of infrastructure, unlocking of superannuation, reviewing of the banking sector and forming of inquiry on cost of housing (Kevin, 2013). To ensure a growing economy; some of the policies here include; reduction in personal income tax which will enable low income earners to increase their earnings while those with higher earning bracket bearing the greater burden. Scraping out the superannuation fund among low income earners while reducing the guarantee rate which will enables most of the low income earners to increase what they will take home. Competitive and diverse economy: - the Coalition government will embark on securing future of Australia economy. This policy will target business owners and entrepreneurs. The main action plan includes; faire trade, support of research and development in manufacturing sector, supporting manufacturing investment, innovation incentives’ safeguarding local manufacturing, removal of carbon tax, helping constructors and other incentives. With this the individual personal finances will be boosted as the cost of living will be cheaper with high job security level (Kevin, 2013). Improvement of the building sector through continuously revising the Australia building codes hens lowering the cost of housing and encouraging more constructors to involve in the business. This will go hand in hand with maintaining the cost of effective building within Australia. The action plan includes Greater access to industry building standards, continuous reviewing of the Building codes, making the Australian building authority independent and lastly reviewing of the energy efficiency strategy. Here other promises include company tax reduction which will encourage investment, while at the same time protecting the local manufactures. Scraping the carbon tax will also create competitive business environment. Summary The Coalition well articulated that the economic plan will for sure leave the Australian budget better and will be in a good position to ensure stronger and efficient economic growth. The saving scheme plan policy which includes abolition of the foreign aid, carbon tax, and revival of superannuation key in stimulating economic growth. The low income earners will be the most people who will benefit mostly with the Coalition policies. The gap between the reach and the poor will greatly reduce with the government saving the Australian budget from unnecessary spending. The election will cost the tax payers over 6.7billion per year and the greater effect to the higher income earners who will lose since they will be tax more compared to the current government tax system. Reference AFE (2013) Australian Federal election updates and news: http://www.news.com.au/national- news/federal-election/weirdest-moments-of-australia8217s-2013-election- campaign/story-fnho52ip-1226713580964#ixzz2gMgdD5yZ Dr Shane Oliver (2013) Head of Investment Strategy and Chief Economist view AMP Capital Investors Election outcome analysis. Kevin Noonan (2013), Public Sector Australian Federal Budget 2013–14, IT007-000704 Putting mobile technology into a government policy perspective,” IT007-000670 (January 2013) Read More