Australia’s centre-left Labor Party forecast to win majority in federal elections
Australians vote in a federal election today that’s expected to see the centre-left Labor Party regain government after six years. Polls suggest the opposition will secure just over 51% of the vote.
Wage growth is dominating voters’ minds. Wages grew by 2.3% last year, which is below the 4% average. In March, Labor officially requested the Fair Work Commission raise the minimum wage by 11.5%, making Australia the country with the highest minimum wage. Furthermore, Labor has promised to restore penalty rates within four months. In 2017, rates employees received for working on abnormal hours were reduced by 25% to 50%.
Whilst Labor’s wage increases would ease the rising living costs for those in employment, it also risks an increase in unemployment as businesses become less profitable.
The ruling Liberal Party, on the other hand, propagates increasing workers’ wealth while still promoting business through tax cuts for both individuals and businesses. The Liberal Party has pledged to lower the business tax to 25%.
If Labor achieves its election promises, expect Australia to become less attractive for businesses. Employment and economic growth will likely suffer as a result.
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