The incumbents will look to grow the economy through the creation of 1.25 million jobs over the next five years, including 250,000 new jobs for young Australians.
They plan on delivering the largest personal income tax in a decade, with-single income families earning up to $126,000 being $1,080 dollars better off.
The Coalition plans to lower business tax and improve access to finance to try and grow small and medium businesses. They have cut the rate of tax to 27.5 per cent for small and medium businesses before moving the rate down to 25 per cent for 2021-22.
Mr Morrison’s government will invest $100 billion into new infrastructure programs to connect domestic and global markets.
They are also looking to support the agriculture sector with $6.3 billion in drought relief.
Two terms that have dominated this election cycle are “negative gearing” and “franking credits,” with the Labor Party planning major changes to reform both tax structures.
Labor plans to reform the franking credits regime, which has been a source of confusion and contention among investors.
Essentially, for investors with shares in an Australian company, the proposal will revoke the right to a tax refund for investors who have not paid that tax.
Currently, under a scheme introduced by former prime minister John Howard, investors receive a refund on taxes paid, even if they have not paid it themselves.
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The Shorten government also plans to change negative gearing so that it is only accessible on new builds after 1 January 2020. If a property is negatively geared, investors can offset their property investment’s losses against their taxable income. Further, the Labor Party will halve the capital gains tax discount after the same date. It’s important to note that these two policies apply to all investments, not just property.
Labor is planning to raise wages by reintroducing penalty rates for 700,000 workers and increasing the minimum wage. Further, the party plans to guarantee casual workers have access to part-time or full-time contracts after a set period.