Looming Election & Budget Promises

Now that the date has been set for a Federal Election on 3 May, the battle lines are being drawn, with Labour promising to Build Australia’s Future and the Coalition to Get Australia Back on Track. Here we touch on some interesting differences in commitments both in early campaigning and reflected in the recently-delivered Federal Budget – and the Opposition’s Budget Reply Speech. 

Overall, the response from business to Jim Chalmers’ fourth Budget was tepid. Despite being marketed as a ‘platform for prosperity’, the general feeling is that the concerns – and requests – of business had been largely ignored. There was no meaningful business tax or energy reform, and rather than increasing the instant asset write-off, which business groups had lobbied for, it was reduced from $20,000 to just $1,000. 

The ban on non-compete clauses was probably the biggest unwelcome surprise, removing the restraint on employees to switch to a competitor or set up in opposition to their former employer. At present, this applies to new hires on salaries under $175,000 per annum, but it’s feared the government will extend that not just to employees on higher salaries, but may also remove clauses in employment contracts which stop staff from poaching staff and clients when they go. 

Also included in the budget was $20 million to encourage consumers to Buy Australian-made products. The funding will be used to launch the campaign in stores, online and across media, support more local manufacturers and producers to get Australian Made certification and improve the online Made in Australia directory. 

Energy relief was a headline item in the budget, and is also one of the big-ticket items for both major parties in the election campaign, with good energy policy seen as a key to strengthening the economy.

Labor says a re-elected Albanese Government would extend energy bill relief with up to $150 in rebates for eligible small businesses and continue their push to have 82% of the electricity market powered by renewables by 2030 – in part by boosting investment in renewables and low emissions technologies through an expansion of the Clean Energy Finance Corporation. 

The Coalition plans to establish a ‘zero-emissions’ nuclear power industry which it says will deliver cheaper, more sustainable power…from the mid- to late-2030s. To cover the gap, they’ll extend the life of existing coal-fired power plants and significantly expand gas infrastructure.

As well as tax cuts and energy bill relief, the Albanese government promises to expand its fee-free TAFE policy to 100,000 places, and $10,000 incentive payments – but it is not clear if this will extend beyond apprentices involved in housing construction. 

As previously mentioned, Labor’s Buy Australian Made campaign may benefit our sector…but given government itself has been reluctant to spend their print dollar on-shore, that’s very much a wait and see. Continued investment in its headline Future Made in Australia initiative is also welcome but, once again, it is not clear whether that will benefit existing industries like print, sign and graphics, or just its identified priority areas like renewables, aerospace and defence.

For their part, the Liberals blame some of the current inflationary pressures on energy policy, but also say that Government spending needs to be cut. As well as putting the public service in its cross-hairs, a Dutton government would also wind back regulatory roadblocks, lower taxes and deliver more affordable and reliable energy, and be tough on anti-competitive behaviour. A 12-month cut to the fuel excise would also bring welcome relief for many businesses. 

READ MORE ABOUT LABOUR’S PLANS HERE

READ MORE ABOUT THE LIBERALS PLANS HERE

FIND OUT WHAT THE BUDGET MEANS FOR BUSINESS

READ PETER DUTTON’S BUDGET REPLY SPEECH