The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on the implications for businesses regarding Australia’s election results.

Context

  • The Anthony Albanese Labor government won a historical landslide in the May 3 federal election, which it views as a strong mandate to implement its election promises and a broader agenda. The extent of the victory sets Labor up to govern for at least two more terms and see through its plans to reform the Australian economy around the net-zero transition and secure Australia’s interests as it faces the greatest strategic challenges since World War II.
  • Labor faces the challenge of lifting productivity and addressing the structural budget deficit while implementing its energy, social and industrial relations agenda. Australia is one of a few countries that have reduced inflation while sustaining a robust labor market and unbroken economic growth. However, the business community was frustrated at the retail politics spending race during the campaign and the lack of focus on long-term challenges such as tax reform and streamlining regulation. The next Cabinet will be sworn in within two weeks, and Parliament is expected to return in June.

Significance

  • Albanese is expected to meet U.S. President Donald Trump soon, possibly at the Group of Seven meeting in Canada in June and the White House. The government is pushing for exemptions from tariffs, and assurances in relation to the Australia-United Kingdom-United States (AUKUS) submarine program. Albanese has pledged to defend Australia’s pharmaceutical benefits scheme and laws banning children from social media and forcing tech companies to pay for local news. He is expected to deepen ties with his center-left counterparts in Canada and the United Kingdom. Albanese is expected to attend this month’s Association of Southeast Asian Nations summit in Malaysia and soon visit key security partner Indonesia.
  • The net-zero transformation is fundamental to the Albanese’s economic agenda and Labor will continue pursuit of ambitious renewable energy and emissions targets. The government will promote development of Australia’s critical minerals sector, advanced manufacturing and artificial intelligence (AI). Nonmining investment is expected to be the main contributor to investment growth over the coming years, supported by investment in renewable energy infrastructure, warehouses and data centers. Treasury expects private sector growth to pick up.

Implications

  • The government is implementing a single front door for major investment proposals related to the government’s Future Made in Australia, its response to the U.S. Inflation Reduction Act. The government is keen to encourage streamline investment approvals for renewable hydrogen, critical minerals processing, green metals, low-carbon liquid fuels and clean energy manufacturing.
  • The corporate sector is calling for regulatory reforms to increase the attractiveness of Australia to investors. The energy sector has expressed concern with “more approval delays, and more ideology masquerading as policy.” During the election campaign, a joint letter from 20 business groups declared, “we have one of the least competitive tax systems among comparable nations. We’ve burdened our economic engine room with countless new pieces of regulation and red tape.”

We will continue to keep you updated on developments in Australia as they occur. If you have any comments or questions, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More