The Coalition Government - Assignment Example

Personal Finances Student’s Name Institution Section 1 The Labor and Coalition promised many things relating to personal finance. These promises would have financial implications to the citizens. The Coalition party promised a stronger yet more productive economy that would be diverse (Liberal Party of Australia, 2013). It also promised that it would lower taxes once it gets to power. Families were to be assisted by freeing them from the onuses of the carbon tax. Jobs were to be created in the next five years after winning the election. A total of two million jobs were to be created in the next ten years. The coalition government also promised a personal income tax cut and also cut company tax rate by 1.5 percent (Michael, 2013). The coalition government was going to abolish the low income super contribution (LISC). Restoration of the private health insurance rebate was also part of their plan. On the other hand, the Labor party had the following promises that would have personal financial implications; taxes would continue to lower (Australian Labor Party, 2013). The superannuation plan is at a rate of 9.25 percent, which ensures Australians have enough pensions once they retire. It also promised to protect the entitlements when an employer files for bankruptcy. Paid parental leave was part of the promises and also fair workplaces in the country. It was also to allow companies to carry back tax losses. There was a new start allowance, and single parents were to be given extra cash per year. It was going to continue delivering protection against all workers from overtime and the rates of penalty among other things. The Labor party had reserved a huge sum of money to ensure training of youths, better and quality education for the youths to ensure they good jobs that pays well. Tax levied on fringe benefits was going to be axed. The Australian economy prior to the election was slowing down. The GPD growth rate had slowed down prior to the election, and the election revolved around this issue. There was a higher rate of unemployment among the citizens and most people who were working in the mining industry had lost their jobs (Donnison, 2013). This led to the slowdown of the Australian economy. The high Australian dollar and commodity with lower prices were some of the causes of revenues fall. Australia had a low budget deficit and debt to GDP compared with other economies that are significant (Trading Economics, 2013). Australia had lost market of some products, and this affected the economy. There was overdependence on some of the industry while neglecting others. The mining industry had also slowed down, and many of the workers had lost their jobs. The GDP annual growth rate was slowing down. Section 2 The election outcome was to bring changes because the cost of living on the citizens was on the rise. Economic issues determined the election, and people tried to weigh their options to vote for what they believed would assist them significantly (Michael, 2013). They assessed all the candidates, weighed their options and critically analyzed their ideologies. I come from Parkwood a suburb located in the Gold Coast. Gold Coast is a city in Queensland. Most of the people in the South Port State electorate, where I belong, voted for the Coalition party (AEC, 2013). They wanted change after assessing the reign of the Labor party for the last six years. The higher rate of unemployment and slow growth rate in GDP played a big role. Queensland had decided to vote for the Coalition party because out of the 22 House of Representatives; the coalition party had taken all the seats (AEC, 2013). At the local level, it was the same scenario because the Coalition Party had dominated. The Federal level recorded the same results. The local electorate of the South Port was content with what the Coalition was offering to them. They liked the policy, and that is why they voted for the Coalition. Both parties sold their policies to the locals, but at the end of the day, the Coalition party carried the day in my area. The win by Tony Abbott was not a surprise to me because people needed change after the economy slowdown. The former Premier era indicated and experienced the slowdown. After six years of being under the Labor leadership, they decided it was time for a change. The Labor government had a lot of challenges because they were in power for six years and that was ample time to prove them but instead the economy slowed down. They were not convincing enough to most people in the country, and that is why the Coalition party won the election. The Labor leadership had done performed, and this could be the reason why they were not given another chance. Section 3 The Coalition led by Tony Abbott won by 53.65 percent meaning it took over as the new government (AEC, 2013). The following are the main policies that the government will implement: policy of superannuation will boost the retirement savings. The current rate is at 9.25 percent, which will ensure that, the retirees benefit once they leave their work places (Liberal Party of Australia, 2013). Another policy is to lower the company tax rate. The prices of goods and services will come down, and clients will buy them at a low price. The paid parental leave will ensure all those go for the leave will have an easy time. The cost of living to them will go down because they will have something to spend. The new government will also do away with the carbon tax (Michael, 2013). The tax was unpopular, and a burden to most of the families because it has increased the cost of living. Most families had to dig deeper in their pockets because of the carbon tax. The new government will scrap off the tax according to the policy. The policy for fairness indexation of military services will ensure fair treatment of retired military personnel. This will ease the cost of living for them (Liberal Party of Australia, 2013). The government will support the Australia health system, and this will ensure that citizens do not dig deeper into their pockets. The policy to index seniors’ card will ensure that senior citizens pay less and hence will not feel the pinch on the cost of living. It will improve the fair work laws to ensure the workers get what they deserve. The low income super contribution will also be abolished. The superannuation policy ensures that each worker saves for his retirement. Anybody who is working will benefit from this policy. Lowering the company tax will benefit both employers and the customers who are citizens. Companies will lower the prices of their products because of the lower tax on their side. The parental leave will benefits all women because once they leave for their parental leave they will receive their dues. The scrapping of the carbon tax will reduce the cost of living to many families. Electricity and gas bills have been expensive because of the carbon tax bills. Almost everybody will benefit from this policy. The military will now have an equal chance with other sectors. The implementation of this policy will ensure they are better off. The health system will ensure that people do not dig deeper in their pocket. This will benefit everybody people who are sick. The seniors are also not left out because they have a policy that will cover them. The fair work laws will ensure that workers receive their overtime package whenever they work for it. Abolishing of the low income super contribution will benefits the low income workers. This will make the cost of living go down. It was clear after voting that people wanted Tony Abbott as their Prime Minister. They wanted a change of leadership and that is why they chose the Coalition party. Their ideologies and policies had won the hearts of many Australians. This means the Coalition party remains with the task of fulfilling its promises to the citizens of Australia. People voted for the Coalition party because people believed in their policies, and now it is up to them to implement. They won a majority of the seats in the House of Representatives in the just concluded elections. Since most of the Australians voted for them, they expect the new government to implement the policies in order to reduce their personal financial burden. Most people in various sectors will benefit from the policies. Implementing the policies will reduce the cost of living and this will greatly reduce the heavy onuses on the people. The retirees will have a better pension once they retire, and this will ease their cost of living. People will have financial freedom. The cost of living will be low because of the scrapping off of the carbon tax and also lower company taxes. Job opportunities will increase when economy starts thriving, and companies will start to produce more. Creation of one million jobs opportunities will arise in the next five years. The cost of living will also ensure citizens have something and can support themselves. Implementing the policies will make the economy thrive once again. References AEC. (2013, September 17). The Official 2013 Federal Election Results. Virtual Tally Room. Retrieved September 17, 2013 from http://vtr.aec.gov.au/ Australian Labor Party. (2013). What We're for. Australian Labor Party. Retrieved September 17, 2011 from http://www.alp.org.au/what_we_re_for Carmignani, Fabrizio. (2013, August 13). FactCheck: How Strong Is Australia’s Economy? The Conversation. Retrieved September 17, 2013 from http://theconversation.com/factcheck-how strong-is-australias-economy-16716 Donnison, Jon. (2013, September 3). Why are Australians worried about the economy? BBC. RetrievedSeptember 17, 2013 from http://www.bbc.co.uk/news/world-asia-23925664 Liberal Party of Australia. (2013). Policies and Discussion Papers. Liberal Party of Australia. RetrievedSeptember 17, 2013 from http://www.liberal.org.au/our-policies Michael, Sarah. (2013, September 6). Federal Election Promises, Cuts and What They Mean for You.NewsComAu. Conversation. Retrieved September 17, 2013From http://www.news.com.au/national-news/federal-election/federal-election-promises-cuts-and what-they-mean-for-you/story-fnho52qo-1226709750378 Moncrief, Marc.(2013, September 2). Promises, promises, promises: The pork that funds the real election campaign. Sydney Morning Herald. Retrieved September 17, 2013 from http://www.smh.com.au/federal-politics/federal-election-2013/promises-promises-promises-the-pork-that-funds-the-real-election-campaign-20130902-2szbi.html TE. (2013). Australia Government Debt To GDP. TRADING ECONOMICS. Retrieved September 17, 2013 from http://www.tradingeconomics.com/australia/government-debt-to-gdp Read More