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Politics

An ‘arms race’ of promises as prime minister set to call election

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Grattan on Friday: an ‘arms race’ of promises as prime minister set to call election

Michelle Grattan, University of Canberra

Oops. Anthony Albanese’s own department pre-empted its boss on Thursday. Some unfortunate official, pressing the wrong button, posted on X that the government was in “caretaker” mode, although the prime minister had not yet called the election.

There was a grovelling apology from the department, saying it was trying to find out why the error occurred.

No matter. The department was only a day early. Albanese goes to government house on Friday for an election on May 3.

Indeed, most players and observers had expected, before Cyclone Alfred, that the campaign, with its “caretaker” period, would be well under way by now.

Instead, we’ve had this budget week that’s seen an auction of handouts.

First, the budget announced the tax cuts, which are more than a year away, and will be delivered in two stages, They are, to use Treasurer Jim Chalmers’ description, “modest”.

Then came Peter Dutton’s counter hit – a halving of the excise on petrol and diesel, briefed out ahead of his budget reply. The benefit would come more quickly – but would only last a year. This is a recycled, extended version of the Morrison government’s 2022 excise cut. Labor supported the 2022 move, but rejects Dutton’s proposal.

The budget we nearly didn’t have gave Chalmers the stage to strut his stuff. Budget weeks traditionally belong to treasurers who, among other things, do a walkabout through the ranks of the journalists who are “locked up” and ploughing through the embargoed budget documents. So some old hands were surprised when the PM appeared with a senior staffer to do his own walkabout. Precedents didn’t come to mind.

Labor sought to wedge the Coalition by pushing through legislation to enshrine the tax cuts. The Coalition voted against them in parliament, then declared if elected, it would repeal them. Dutton has confirmed he won’t be announcing any policy for tax cuts closer to the election.

For the Liberals, to be seen opposing an income tax cut is unusual and risky. It’s made for campaign slogans. “The only thing they don’t want to cut is people’s taxes,” Albanese declared. “Labor is the party of lower taxes.” Both sides will be watching their polling carefully in coming days to see whether this stand rebounds against the Liberals.

The opposition believes its excise reduction will hit the mark, especially in the seats it is most targeting – those in the outer suburbs where people drive a lot.

But Kos Samaras, from the Redbridge political consultancy, predicts people will see this “arms race” of handouts as providing just band-aids, with the measures likely to cancel each other out.

Apart from the excise measure, the other big initiative in Dutton’s reply was his plan for a gas reservation scheme.

This is designed to fill what has been an apparent big hole in the opposition’s energy policy. It has its ambitious (many would say unrealistic) nuclear plan for the long term. But if it is arguing it would be able to bring down energy bills any time soon, it needs a here-and-now policy to do so.

Its answer is to turn to gas. That requires ensuring a reliable and adequate supply for the local market, to drive down the price.

“Gas sold on the domestic market will be de-coupled from overseas markets to protect Australia from international price shocks,” Dutton said in his Thursday speech. “And this will drive down new wholesale domestic gas prices from over $14 per gigajoule to under $10 per gigajoule.”

Dutton told the ABC after his address that the price fall could be achieved by the end of this calendar year.

That estimate sounds like a hostage to fortune. Precision can be dangerous when it comes to energy promises. Who can forget that number Labor put out so confidently before the last election – a $275 fall in household power bills?

Critics will find all sorts of issues with Dutton’s east coast reservation scheme, including that it would be heavily interventionist and there’s no guarantee it would work. Labor says Dutton is reheating one of its old plans, and that the government has the gas situation under control anyway.

The opposition says its plan is in line with warnings on gas supply released by the Australian Competition and Consumer Commission on Thursday.

The potential effectiveness of Dutton’s gas plan will be highly contested. What is not in dispute is that the partisan divide over the energy transition will be one of the central issues of the campaign.

This week the prime minister has had a spring in his step. The polls have improved somewhat, and the “vibe” seems to be with him. Responding to a challenge from a couple of podcasters, he playfully put the phrase “delulu with no solulu” into a speech to describe his opponents. Never mind that middle-aged politicians sound slightly absurd when they try to be hip. Albanese is a confidence player and at the moment his confidence is up.

The tactical games aren’t just around the tax cuts. Calling the election first thing Friday carpet bombs Dutton’s budget reply.

And once the election is called, parliament will be prorogued and that will scrap the Friday sitting of estimates committees, denying the opposition an opportunity to quiz officials about the budget and other matters. (On Thursday, the “caretaker” fiasco became public during an estimates hearing, surprising officials from the PM’s department who happened to be appearing at the time.)

For his part, Dutton understands the odds against him.

Political scientist Rodney Tiffen, in an analysis of federal campaigns from 1972 to 2022, found no example where an opposition had started the campaign roughly equal in the polls and won, and three where it had lost (1980, 1987, and 2004). “All winning oppositions started the campaign already ahead,” Tiffen writes in a chapter in The Art of Opposition.

In his budget reply, Dutton delivered one revealing line: “This election is as much about leadership as it’s about policy”.

Dutton casts himself as the leader who would make the tough decisions. “I will lead with conviction – not walk both sides of the street,” he said.

“I will be a strong leader and a steady hand – just as John Howard was.”

Dutton might see Howard as his role model, but it will be a big leap of faith for many voters to see the opposition as a contemporary Howard.

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Politics

Small business tax cut boosts economy, creates jobs

COSBOA: Small business tax cut could boost Australia’s economy by $11.4 billion and create 3,370 permanent jobs.

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COSBOA: Small business tax cut could boost Australia’s economy by $11.4 billion and create 3,370 permanent jobs.

In Short

COSBOA’s economic modelling suggests that reducing the small business tax rate from 25% to 20% could boost the economy by $11.4 billion and create around 3,370 jobs.

CEO Luke Achterstraat urges major parties to adopt this fiscally prudent proposal, which could enhance cash flow, innovation, and overall economic growth for small businesses.

Economic modelling by the Council of Small Business Organisations Australia (COSBOA) indicates a reduction in the small business tax rate from 25% to 20% could enhance the economy by up to $11.4 billion and create approximately 3,370 permanent jobs.

COSBOA’s CEO, Luke Achterstraat, described the tax cut as “fiscally prudent” and beneficial for economic policy, noting it could stimulate cash flow and business growth.

Achterstraat stressed the importance of this proposal for small businesses, emphasising that it would lead to increased economic growth, innovation, and productivity. He explained that the modelling suggested the GDP could rise by $10 for every $1 lost in tax revenue, resulting in significant economic benefits and minimal budget impact.

Adopt the policy

As the 2025 election campaign progresses, Achterstraat called on major parties to consider adopting the policy, highlighting its potential to support small businesses, particularly following challenges from the GFC and Covid-19.

The modelling evaluated three scenarios for tax reduction implementation: an immediate cut in 2025-26, a phased approach to 2027-28, and another to 2029-30. Each scenario showed substantial benefits for small business cash flow, investment, and job creation.

Under the immediate reduction scenario, Australia’s GDP could increase by about $11.4 billion over five years, with net gains of roughly $10 for each $1 of lost revenue. This tax cut could provide essential relief for small businesses, allowing them to focus on their operations and community service.

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Politics

Newspoll steady as both leaders’ ratings fall

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Newspoll steady as both leaders’ ratings fall; Labor surging in poll of marginal seats

Adrian Beaumont, The University of Melbourne

With less than two weeks to go now until the federal election, the polls continue to favour the government being returned.

Newspoll was steady at 52–48 to Labor, but primary vote changes indicated a gain for Labor as both leaders dropped on net approval. A Redbridge marginal seats poll had Labor gaining two points since the previous week for a 54.5–45.5 lead, a 3.5-point swing to Labor in those seats since the 2022 election.

A national Newspoll, conducted April 14–17 from a sample of 1,263, gave Labor a 52–48 lead, unchanged on the April 7–10 Newspoll. Primary votes were 35% Coalition (steady), 34% Labor (up one), 12% Greens (steady), 7% One Nation (down one) and 12% for all Others (steady).

In the last two Newspolls, Labor has been a little lucky to get a 52–48 lead as this would have been given by 2022 election preference flows, and Newspoll is making a pro-Coalition adjustment to One Nation preferences. This time the 2022 election flow method would give Labor about a 53–47 lead.

This Newspoll is the only new national poll since Friday’s update. The fieldwork dates were nearly the same as for the Freshwater poll that had Labor ahead by just 50.3–49.7 (April 14–16 for Freshwater). Other polls indicate that Freshwater is likely the outlier. Here’s the Labor two-party vote chart.

In-person early voting begins on Tuesday ahead of the May 3 election, so there isn’t much time for the Coalition to turn around their deficit, if the polls are accurate.

Anthony Albanese’s net approval in Newspoll was down five points to -9, with 52% dissatified and 43% satisfied. Peter Dutton’s net approval was down three points to -22, a record low for him. Albanese led Dutton as better PM by 52–36 (49–38 previously). This is Albanese’s biggest lead since May 2024.

Here’s the graph of Albanese’s net approval in Newspoll this term. The plus signs are data points and a smoothed line has been fitted.

Albanese and Labor were preferred to Dutton and the Coalition on helping with the cost of living by 31–28. Labor also led on dealing with uncertainty caused by Donald Trump (39–32), lowering taxes (33–26) and helping Australians buy their first home (29–24). The Coalition led on growing our economy by 34–29.

For so long, it had appeared that the cost of living issue would sink Labor at this election, so this result will please Labor.

Labor surges further ahead in Redbridge marginal seats poll

A poll of 20 marginal seats by Redbridge and Accent Research for the News Corp tabloids was conducted April 9–15 from a sample of 1,000. It gave Labor a 54.5–45.5 lead, a two-point gain for Labor since the April 4–9 marginal seats poll. Primary votes were 35% Labor (steady), 34% Coalition (down two), 14% Greens (up two) and 17% for all Others (steady).

The overall 2022 vote in these 20 seats was 51–49 to Labor, so this poll implies a 3.5-point swing to Labor from the 2022 election. If applied to the national 2022 result of 52.1–47.9 to Labor, Labor would lead by about 55.5–44.5. Since the first wave of this marginal seats tracker in early February, Labor has gained 6.5 points.

Albanese’s net favourability improved three points since last week to -5, while Dutton’s slumped six points to -22. By 36–26, voters thought Albanese and Labor had better election promises for them than Dutton and the Coalition.

By 56–13, voters agreed with Labor’s attack line that Dutton’s nuclear plan will cost $600 billion, and he will need to make cuts to pay for it. By 42–16, voters agreed with the Coalition’s attack line that this is the highest spending government in the past 40 years.

Additional Resolve questions and a right-wing poll of Wentworth

I previously covered the April 9–13 Resolve poll for Nine newspapers that gave Labor a 53.5–46.5 lead. Asked their biggest concerns about voting Labor, 47% said cost of living (down five since February), 36% economic management (down nine), 31% lack of progress in their first term (steady), 27% union ties (up two) and 24% Albanese’s personality (down six).

Asked their biggest concerns about voting for the Coalition, 45% said Dutton’s personality (up ten), 36% lack of policy detail (up eight), 34% that the Coalition would follow Donald Trump’s example (up six), 32% the performance of the Scott Morrison government (up four) and 31% their nuclear power plan (up five).

The February Resolve poll was the 55–45 to Coalition outlier, so responses in the prior survey were probably too Coalition-friendly.

The Poll Bludger reported Saturday that a seat poll of Wentworth, which teal Allegra Spender holds by a 55.9–44.1 margin over the Liberals after a redistribution, gave the Liberals a 47–28 primary vote lead over Spender with 15% for Labor and 10% for the Greens. This poll was taken by the right-wing pollster Compass.

Canadian election and UK local elections

I covered the April 28 Canadian election for The Poll Bludger on Saturday. The centre-left governing Liberals are down slightly since my previous Poll Bludger Canadian article on April 10, but are still likely to win a parliamentary majority. Debates between four party leaders occurred Wednesday (in French) and Thursday (in English), and we’re still waiting for post-debate polls.

United Kingdom local elections and a parliamentary byelection will occur on May 1. Current national polls imply that the far-right Reform will gain massively, with the Conservatives and Labour both slumping. Two seat polls give Reform a narrow lead over Labour for the parliamentary byelection in a safe Labour seat.

Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Politics

Trump pushes trade talks with Japan and Europe amid tariff turmoil

Trump engages directly in global trade negotiations, claiming “Big Progress” as tariffs reshape markets, but urgency looms for substantive results amid cautious responses from Japan and the EU.

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Trump engages directly in global trade negotiations, claiming “Big Progress” as tariffs reshape markets, but urgency looms for substantive results amid cautious responses from Japan and the EU. #Trump #TradeTalks #GlobalEconomy


President Trump is taking a direct role in global trade negotiations as U.S. tariffs reshape global markets. Meeting with leaders from Japan and Italy, Trump claims “Big Progress” on new trade agreements.

But with Japan cautious and the EU pausing retaliation, the pressure is on for meaningful results. How urgent is a deal for the U.S. economy?

Can Trump’s hands-on approach deliver outcomes or cause friction?

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#Trump #TradeTalks #USJapan #Tariffs #GlobalEconomy #Politics #TickerNews #TradeWar

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