Market response to the Election outcome

[Boggo]

The policies and programs around accelerating renewable energy investment in Australia and ensuring the lights don't go out when coal fired stations close down has to be an immediate priority. Mucking around for 18 months would be a recipe for electoral disaster. The pressure from Greens ,Teal and Labour voters to see this happen will be massive. Hopefully.. someone has been doing their homework and can hit the ground running. There are certainly enough organisations that have developed strategies that would be capable of being put into action.

I can see a lot of midnight oil being burnt in the new Government.

Unfortunately I think we are going to see the Red dog being wagged by the Green tail

 

[divs4ever]

Unfortunately I think we are going to see the Red dog being wagged by the Green tail

if we end up with something like the current German regime , we are in for some very dark times ( pun intended )

i am hoping SOME of the independents are precisely that , support good ideas , because they deserve to progress and block ( or at least force modification of ) the bad .

if that happens the ALP will be able to get some good plans done despite Green opposition , and resist or improve bad plans

i suppose it is too much to wish for , a Brian Harradine clone in the Senate to exploit the balance of power effectively ( at least for his state and sometimes all of Australia )

 

[sptrawler]

Elephant in Room (or not)... excerpts from AFR:

Not so long ago, boards and executives could worry about shareholder returns and financial performance first, second and third. [With t]he emergence of ESG (environmental, social, governance) issues, [ ] companies now know both their social licence to operate and cost of capital depend at least in part on balancing financial returns with matters such as emissions reduction, gender diversity, inclusion and accountability.

But really, these forces have transformed the business sector in the past five years, for better or worse.

The biggest area of change the business community will need to navigate under Anthony Albanese will be in the area of climate policy, although exactly what this eventually might look like will depend on whether Labor can form a majority government, and how the votes in the Senate fall.

Like all things there will be winners and losers. And, to my mind, the more any government tries to pick them, the worse the outcomes. Sadly, they don't seem to be able to stop thinking they're important and the new flush of colour politics look even more woke.

That pretty well nails why the LNP were toast, the days of thinking fiscal management and military preparedness are the priority, are long gone.
The new paradigm is, be green, be inclusive and if military conflict starts move to another country.
The down side to an entitled population is, when push comes to shove, patriotism comes a distant second to self preservation.
So extrapolating that to the markets will be interesting, the push for Green will probably over ride the business model, that should cause some huge fluctuations in the energy sector.
IMO there will be a surge in anything green and when reality hits a massive surge in oversold industries, IMO the very reason for the raid on AGL all their transmission infrastructure and well situated sites are gold.

 

[sptrawler]

Unfortunately I think we are going to see the Red dog being wagged by the Green tail

I think you are right, it will be interesting to see if it ends well, but it is a situation that has to be resolved.
Way too much blue sky dreaming IMO, but if they pull it off kudos to them, if they don't well the grandkids won't be happy.
Let's see if 100 years of fossil fueled energy, can be turned around on a sixpence, hopefully it can.
If it can't, I think there will be a lot of collateral damage, in all sectors.
If we do we will be a beacon for humanity, well aside from the fact we have a lot of sunlight a lot of open range and not many people.
If we can't do it no one can.
Bring it on, let the fun begin IMO, we want rid of fossil fuel and we want it now. ?

 

[Value Collector]

Maybe, but Albanese shows few signs of walking away from the US Alliance that has always stuck in China's throat.

We can all hope for an improvement in Aus/China relations but I wouldn't necessarily take it for granted.

I voted for labour for the first time in my life this election, Previously I was a life time Liberal Voter.

I am generally economically conservative, but socially socially progressive, So given that in this election the Labor party weren’t openly targeting higher taxes etc like last time, I thought it was a good opportunity to vote with my heart on all the other issues that Liberal has been ignoring.

 

[SirRumpole]

I voted for labour for the first time in my life this election, Previously I was a life time Liberal Voter.

I am generally economically conservative, but socially socially progressive, So given that in this election the Labor party weren’t openly targeting higher taxes etc like last time, I thought it was a good opportunity to vote with my heart on all the other issues that Liberal has been ignoring.

I'm probably the opposite, socially conservative but economically progressive, and I was relieved that Labor didn't go into the higher tax area because it just loses them elections.

Mind you, I think that their stated financial policy is just the tip of the iceberg, if they want budget repair then they are going to have to hit someone, the piddling amounts that they expect in to get from corporate tax avoidance or government rorts won't cut it. I expect some sort of resource taxes which they cleverly didn't mention and no one asked them about.

Labor ran a clever small target campaign but if they are going to be a responsible government then they will have to widen the revenue stream somehow.

 

[Value Collector]

I'm probably the opposite, socially conservative but economically progressive, and I was relieved that Labor didn't go into the higher tax area because it just loses them elections.

Mind you, I think that their stated financial policy is just the tip of the iceberg, if they want budget repair then they are going to have to hit someone, the piddling amounts that they expect in to get from corporate tax avoidance or government rorts won't cut it. I expect some sort of resource taxes which they cleverly didn't mention and no one asked them about.

Labor ran a clever small target campaign but if they are going to be a responsible government then they will have to widen the revenue stream somehow.

I think the budget should balance itself as covid recovery keeps chugging along, there is plenty of cash rolling in from resources, no need for extra taxes on it.

Labor have said they will keep the 2024 tax brackets proposed by the coalition, so that’s a good sign that I don’t think they will be Chasing higher taxes.

All I want out of them is a square deal for wage earners and capitalists alike, in the past though have always seemed to want to cut into the capitalists side of the pie, which has been a turn off, if they can keep to the centre economically, I will be happy, if not I might regret my vote.

 

[3 hound]

Going to be interesting to see how labour walk the line of being wokest, greenest and most social justice driven party in the region when negotiating trade agreements with China, will profit win over principles and expose labour as potential frauds to their voting base?? Will labour acknowledge Taiwanese sovereignty and risk displeasing the CCP. Will Australian diplomats pressure China on human rights issues? Will Australia follow China if china stops using us dollars to buy oil and if they ignore sanctions on Russia?

These will be great tests for Labour leadership and have big implications for trade relations, investments.

 

[Value Collector]

Going to be interesting to see how labour walk the line of being wokest, greenest and most social justice driven party in the region when negotiating trade agreements with China, will profit win over principles and expose labour as potential frauds to their voting base?? Will labour acknowledge Taiwanese sovereignty and risk displeasing the CCP. Will Australian diplomats pressure China on human rights issues? Will Australia follow China if china stops using us dollars to buy oil and if they ignore sanctions on Russia?

These will be great tests for Labour leadership and have big implications for trade relations, investments.

I would say it’s up to Chinese people to press the Chinese government on those issues, not any Australian government.

 

[Telamelo]

I'm probably the opposite, socially conservative but economically progressive, and I was relieved that Labor didn't go into the higher tax area because it just loses them elections.

Mind you, I think that their stated financial policy is just the tip of the iceberg, if they want budget repair then they are going to have to hit someone, the piddling amounts that they expect in to get from corporate tax avoidance or government rorts won't cut it. I expect some sort of resource taxes which they cleverly didn't mention and no one asked them about.

Labor ran a clever small target campaign but if they are going to be a responsible government then they will have to widen the revenue stream somehow.

A good place to start with is for Labor to crack down on the following..

Household names: 168 Australian companies have paid no tax since 2013

ATO deputy commissioner says there are ‘legitimate reasons why a company may not pay tax’

www.theguardian.com

 

[Value Collector]

A good place to start with is for Labor to crack down on the following..

Household names: 168 Australian companies have paid no tax since 2013

ATO deputy commissioner says there are ‘legitimate reasons why a company may not pay tax’

www.theguardian.com

Crack down on what?

Did you actually read the article? As the article states there are legitimate reasons for some companies not to pay tax over certain periods or some times not at all, ever.

In the case of not paying tax at all or ever, it’s often because the companies are set up as trusts, where the “profits” are passed through to the owners who pay the tax on their own tax returns, or they can be set up with certain structures where the tax is paid by other related entities.

 

[Telamelo]

Crack down on what?

Did you actually read the article? As the article states there are legitimate reasons for some companies not to pay tax over certain periods or some times not at all, ever.

In the case of not paying tax at all or ever, it’s often because the companies are set up as trusts, where the “profits” are passed through to the owners who pay the tax on their own tax returns, or they can be set up with certain structures where the tax is paid by other related entities.

I feel/believe that many multi-national companies in Australia use "loop holes" to avoid paying any tax whatsoever despite earning substantial profits here - IKEA as an example has paid no tax despite surging sales/earnings during the pandemic.

 

[SirRumpole]

I would say it’s up to Chinese people to press the Chinese government on those issues, not any Australian government.

 

[SirRumpole]

Crack down on what?

Did you actually read the article? As the article states there are legitimate reasons for some companies not to pay tax over certain periods or some times not at all, ever.

In the case of not paying tax at all or ever, it’s often because the companies are set up as trusts, where the “profits” are passed through to the owners who pay the tax on their own tax returns, or they can be set up with certain structures where the tax is paid by other related entities.

"Trusts" are simply a tax avoidance scheme.

 

[3 hound]

I would say it’s up to Chinese people to press the Chinese government on those issues, not any Australian government.

You realise you have made the arrogant assumption that what you want is what the population of China want - that is actually implicit racism, and white (western) supremacy in action.

 

[JohnDe]

Labor ran a clever small target campaign but if they are going to be a responsible government then they will have to widen the revenue stream somehow.

It wasn't hard for them to be a small target, very few people read these days.

Their National Platform was released 12 months ago, I'm pretty sure not many voters looked it up.

If the Labor Party follow their plan, and get it right, they'll be in government for quite a while. I'm thinking that the markets will be happy and there will be big winners in certain sectors.

Welcome to Labor’s 2021 National Platform​

In March 2021, delegates to the Australian Labor Party’s Special Platform Conference gathered to debate and adopt our National Platform. Our online Special Platform Conference was an event like nothing Labor – or any other Australian political party – had attempted before. Over two days, delegates, branch members and observers joined from home, from work and from community spaces in every corner of the country.​

https://alp.org.au/media/2594/2021-alp-national-platform-final-endorsed-platform.pdf

 

[Value Collector]

You realise you have made the arrogant assumption that what you want is what the population of China want - that is actually implicit racism, and white (western) supremacy in action.

No I didn’t, you asked if Australian Diplomats will pressure China on human rights issues, I said it’s up the people of China to pressure their government on those issues.

How is that me being arrogant? How is that implicit racism? How is that western supremacy? It’s actually the opposite.

 

[divs4ever]

I voted for labour for the first time in my life this election, Previously I was a life time Liberal Voter.

I am generally economically conservative, but socially socially progressive, So given that in this election the Labor party weren’t openly targeting higher taxes etc like last time, I thought it was a good opportunity to vote with my heart on all the other issues that Liberal has been ignoring.

no need to talk higher taxes this time , bracket creep and indexation ( on top of inflation ) should give it plenty , as long as the exports keep rolling , Albo picking a winning strategy , so almost nothing , and let that guy from marketing make all the gaffes

and even then the minor players picked up nearly 40% of the vote

 

[divs4ever]

"Trusts" are simply a tax avoidance scheme.

but one used by high-flyers in both parties and other influential people ,

 

[Value Collector]

"Trusts" are simply a tax avoidance scheme.

Not at all, they are simply a way of owning assets and distributing income.

In the examples given, all profits are distributed to the owners, and tax is paid at that owners marginal rate, which can be as high as 47%, which is higher than they company rate of 30%.

The only difference is that capital gains are passed through and taxed at the personal tax rate which allows the owner to receive the 50% cgt discount, where as under the company structure they can’t get the discount, so it puts people that want to invest in large office towers on the same tax footing as someone investing in smaller property investments directly.

trusts never reduce the total dollars subject to tax, it only distributes those dollars to other taxpaying entities.