What Australia’s election means for business
HONG KONG - With commitment in infrastructure investment, lower taxes and unchanged labour and wage policies, the Australian election outcome means "business as usual", says French banking group, Natixis, in a research note. "The risks in a Government change are dismissed but challenges in economic transition, productivity and geopolitics will remain important for the Coalition government and future growth," the report says.
"Strong demand from a rising population and an emerging e-commerce trend means infrastructure demand will continue to be strong for Australia. The promise that the Coalition commits investment on infrastructure but with fiscal surplus mean there will be more opportunities for private investment and asset securitisation," it says.
"The property cycle will continue to experience correction, and the election outcome is not going to revert the trend immediately. However, the status quo by the Coalition on negative gearing and capital gains tax means the downward pressure is lessened.
"A less ambitious renewable energy goal and a laxer regulatory environment entail less short-term risks for the overall mining and energy sector. The transition to green energy will continue but at a slower progressive pace, which gives coal miners more breathing space domestically. Utilities will continue face tighter rules amid the concern over surging energy prices.
"Retail and hospitality are the two sectors with the highest reliance on part-time jobs with a significant share of employment in Australia. The Coalition is more market-oriented on minimum wage and employment policies, indicating the two sectors will have lower risks from higher labour costs.
"For financials, a Coalition win also means health insurers will not be subject to a premium cap. However, the aftermath of the Banking Royal Commission means banks will continue to face regulatory pressure."