Policy Changes May Be Held Back By Senate Politics
BMI View: Australia's Liberal-National coalition, led by Tony Abbott, was awarded 86 out of the 150 seats in the House of Representatives, taking the helm from Prime Minister Kevin Rudd's Australian Labor Party (ALP) after six years of rule. Over the course of the elections, the policy stance of both major parties has converged, suggesting that the sombre trajectory of Australia's fiscal finances will not change under the new government. Although we believe that the coalition government will attempt to improve the business environment, its lack of a majority in the Senate suggests that there are risks that its policies will be diluted and delayed.
Australia's opposition Liberal-National coalition was awarded an overwhelming majority in the House of Representatives in federal elections held on September 7, defeating the ruling Australian Labor Party (ALP) that has held power for six years. Indeed, as we noted in our earlier pieces (see, 'Last-Minute Leadership Change No Panacea', 27 June), the deteriorating economic performance remained the key issue during the elections, and in line with our expectations, ALP's last minute political manoeuvres to provide little boost to its election chances. With this victory in the lower house, where the coalition now holds 10 more seats than the 76 it requires to form government, coalition leader and Prime Minister-elect, Tony Abbott, has now a chance to effect his policies and promises.
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