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Making heads and tails of the upcoming federal election

Making heads and tails of the upcoming federal election (Last Updated On: March 1, 2016)

The federal election is looming, and there is so much uncertainly on what each parties campaign will comprise of. This is no real surprise but let us summarise the latest in the political arena.

Federal election date

There has been a huge amount of ambiguity surrounding the actual date of the federal election. With riddle like suggestions it would take place in a month starting with A, this caused some speculation we would be hitting the polls next month. However, Mr Turnbull announced yesterday that in fact, an election around August, September or October would be his preference. So what was this all about?

A double dissolution election

In the words of Mr Turnbull, the threat of an early election was proposed if the Senate refused to pass the Bill to reinstate the building commission watchdog. This type of election is described as a double dissolution. If an election such as this was to proceed, the latest it could take place is 16 July 2016. It seems after yesterday’s announcement, this will not occur. Mr Turnbull’s passion behind the reinstatement of this watchdog stems from thoughts that an industry sector, that employs millions of Australians, should be governed by law of which he describes “is in many respects, a lawless zone”.

A double dissolution election is an election to resolve any deadlocks between the House of Representatives and the Senate. If this situation arises, the Government in power can request the Governor-General to dissolve both houses and call a full election, meaning the current 76 senators will come up for re-election. In normal elections only half the senators face a vote.

The last election of this kind was in 1987.

Tax reforms

Mr Turnbull also seems to be under fire for taking his time when it comes to tax reforms, of which he maintains a no apology stance. Turnbull states “we make no apology for considering tax and changes to the tax system very carefully and analysing it carefully”

At one stage, Mr Turnbull was floating the idea of raising GST from 10% to 15%, however that is now off the table. In an effort to find money to fund income tax cuts, latest speculation stems around cutting capital gains tax discounts in half for superannuation funds. Something former Prime Minister John Howard is strongly advising against. While discussions continue, it has been advised that portions of the tax reform package will be released prior to federal budget announcement in May.

With all this uncertainty, it is hard to predict any outcome, and more so, what changes will impact your business. Employsure clients can rest assured we will keep you updated on any and all changes to reforms affecting you and your business. Call Employsure today on 1300 651 415 to find out more.

Source: News.com.au, ABC and SMH

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