Future thinking should be shared. With that in mind our team publishes insights weekly to help keep you in the (k)now.


Hewison Private Wealth - Insights
Hewison Insights
Tony Abbott
Investment markets
Change in government

Will a New Government Impact Markets?

Nathan Lear
Partner/Private Client Adviser
16 Sep 2013

As was predicted by the opinion polls, Australia has a new government with the Tony Abbott led Liberal party winning power.

A change of government often brings a change of attitude to investment markets.  For the Australian market, it is likely to respond favourably to the change of government. In recent history, Australian shares have generally risen after federal elections. However, it must be noted the Australian share market performed strongly in August which can pose the question of whether the anticipated change of government has already been factored into the market.

The new government has tabled its desire to implement some key policy changes. These include: cutting taxes, namely the mining and carbon taxes, a focus on increasing productivity and committing more funds to infrastructure spending. These policies are seen to be supportive to businesses and business confidence. 

 NAB’s business survey showed that business confidence in August shot up to 6 from -3 in July, the highest reading since May 2011.  Since the election the Australian dollar has also found support, bouncing back to near 93 US cents.

 The last few months there has been a feeling in the air of “let’s wait and see what happens at the election.” Now that the election has been fought and won, let’s hope confidence continues to improve and business can get on with the job. A new government will bring an element of certainty which we anticipate will have a positive impact on the market.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.