Real work needed in wake of election | Australian Markets

ANALYSIS

With the Federal Election final result now clearly outlined, consideration will  flip to which member of the Government shall be appointed to develop into Assistant Treasurer and run the Financial Services portfolio.

Surprisingly, there will even be curiosity in who will take the portfolio on the new Federal Opposition entrance bench in circumstances the place the shadow Assistant Treasurer and Minster for Financial Services, Luke Howarth seems to have misplaced his Brisbane seat of Petrie in the identical political rout which noticed the Federal Opposition chief, Peter Dutton lose his seat of Dickson. The Shadow Treasurer now emerges as a front-runner to interchange Dutton because the Parliamentary chief of the Liberal Party leaving the Treasury portfolio an open wager.

The checklist of contenders to interchange the politically retired Stephen Jones in the financial providers portfolio just isn’t long and contains the present Assistant Minister for Competition, Charities and Treasury, Assistant Minister for Employment, Andrew Leigh and somebody not but in outer cupboard, former adviser to Bill Shorten in the portfolio, Dr Daniel Mulino.

What appears sure is that the identical measure of control over the portfolio that was exhibited by the Treasurer, Jim Chalmers, during the final Parliament shall be evident in his relationship with the successor to Jones.

And that particular person will discover on the high of their ministerial briefing in-box the festering challenge of the funding preparations for the Compensation Scheme of Last Resort (CSLR) and the much less than heat welcome being supplied to the publicity draft DBFO laws.

The main financial providers foyer teams will need to behave shortly and loudly to be heard as a result of, if historical past is any information, then the new minister will attempt to dispense with difficult legacy points as shortly and painlessly as attainable to offer them room to make their own mark.

Crucial to the financial providers sector would be the make-up of the Senate in circumstances the place the Government now controls a good-looking majority in the House of Representatives – one thing which obviates the need to haggle with pesky cross benchers over controversial coverage points such because the laws which stays on foot for the taxation of unrealised capital beneficial properties.

That laws, tied up to scale back the tax concessionality of superannuation balances over $3 million confronted defeat in the Senate in the final parliament however is perhaps simpler for the Government to navigate if the new Senate displays the pro-Government outcomes evident in the House of Representatives.

Equally difficult for the financial advice sector shall be extracting any important change from the Government on its publicity draft of the DBFO laws in circumstances the place the Prime Minister, Anthony Albanese and the Treasurer, Jim Chalmers, shall be acutely aware of the debt owed to trade unions and the industry funds.

There is, nonetheless, higher hopes for the career extracting significant change to the CSLR in circumstances the place there’s clear and growing proof that the present funding components is mired in mora hazard.