Polling and Electricity Prices
Today we have been “flooded” by opinion polls which, while not showing any overall deterioration in the Turnbull Coalition’s polling, confirm its continued inability to effect any significant improvement in that polling. The state by state Newspoll for the February-March quarter also suggests there is a continued problem in Queensland, where the One Nation vote is much higher than in other states and has increased significantly since the 2016 election result (from 5.5 to 13 percent in the February- March quarter).
Newspoll & Next Six Weeks
The Turnbull government has succeeded in obtaining personal income tax cuts and Shorten has had to back-flip on his promise to repeal any tax cut for 20,000 businesses. What more did Turnbull need to put the Coalition ahead in Newspoll after 35 negative results and to improve its chances in the July 28 by-elections?
Electricity Policy
As Parliament left for the six week winter break, major divisions remained within the Coalition on electricity policy, the outcome on which basically depends on what view is taken on climate change. If the view is taken that Australia must significantly reduce emissions of CO2, we will continue to reduce the use of coal to power electricity and instead use the more expensive sources of power which have already caused major increases in electricity prices even though they involve lower or nil emissions. It would also mean an acceptance of a much bigger role of government in the economy, which many see as the real objective.
Tax Cuts & Rises in Electricity Prices
The Turnbull government has succeeded in obtaining a welcome reduction in personal income taxes. But the estimated reduction in total tax levels is less than might be imagined from the media exchanges. This is important because, as stated in Budget Paper No.1 for 2018-19, “it is important that the personal income tax system does not act as a disincentive for those taking on additional work or seeking advancement”. Also that the “cap on the overall tax burden… “is consistent with the long term average of 23.9 per cent of GDP” which the government has set.
Bad Newspoll for Coalition
In yesterday’s Commentary I suggested that, as since the last Newspoll Shorten’s performance has slipped and Turnbull’s has improved, this should result in an improvement in the Coalition’s polling in the imminent Newspoll. In the event the support for the Coalition dropped slightly on both primary votes and TPP.
Fallen Leaves; Royal Wedding; Lisa Moore in Melbourne
With a Newspoll due tomorrow, one of the leaders now faces possible “long days and winter’s song”. On the surface it appears that Shorten will be the principal singer as he has experienced a setback from his repeated advice that none of the Labor parliamentarians are subject to the dual citizenship test only to find that four are now subject to the five in by-elections to be held on 28 July. He also has to accept responsibility for the extensive alterations made to a transcript of an interview on Labor policy on how long asylum-seekers could be retained in detention. The altered transcript, which was “cleared” by Shorten’s office, showed that left-wing Labor’s human services spokeswoman Burney opposed indefinite detention but refused to say for how long detention could be under Labor policy on immigration.
Polling on Budget & Bad Assessments by Commentators
Today’s Newspoll shows the Coalition still behind Labor on third party preference votes by 49/51 and indicates that only 41per cent think the tax-cutting budget was “good”. But the improvement in Turnbull’s Better PM rate to 46/35, compared with the 38/35 at the previous Newspoll, has led The Australian to present the poll as a major victory to Turnbull, to argue that the budget was “one of the most well-received …in a decade”, and to claim “the result maintains an electoral position for the Coalition that it has not enjoyed since September 2016”. It also says the result “builds momentum” for the five by-elections expected in early July (see attached Newspoll Shows No TPP Change on Budget).
Disappointing Budget Assessment
A huge amount has been written about the 2018-19 Budget presented on Tuesday by Treasurer Scott Morrison as a 7 year plan to make personal income tax “lower, simpler and fairer” (see Morrison on Effect of Tax Cuts). But the proposed changes in the structure of the income tax system are not worth considering other than as possible thoughts for future budgets. There will be at least three more elections by 2025 and many thoughts raised or proposed about the structure. It is already apparent that the proposed changes in the tax treatment of those on high incomes will not get through the Senate and neither will the already proposed further reductions in company tax.
No Iran Nuclear Deal, Tax Cuts
It is difficult to understate the importance of Israel’s “discovery” that, after in 2005 Iran signed a deal with the US (under Obama) and major European countries, it did not in fact comply with the agreed restrictions on its nuclear activity in return for the lifting of sanctions which included considerable US dollar “reserves”. The press conference by Israel PM Netanyahu and initial reactions from Trump are reported in Trump on Iran. This report appeared in my inbox at about 10 am this morning but was not mentioned on “our” ABC’s lunch time news. Another one for CEO Michelle Guthrie to explain.
Coalition Still Behind
The slight improvement in the Coalition’s TPP (from 48/52 to 49/51) is scarcely something to write home about and did not reflect a “bounce”, as The Australian headlined it. The improvement might have been helped by Turnbull’s announcement of Commonwealth contributions to a railway to Melbourne’s airport and to two Queensland projects (see Newspoll 23 April). But it is not good tidings that Turnbull continues to fail to attract majority polling when his “jobs and growth” policy is consistent with what is actually happening in the economy, although not necessarily causing it.