Conservatives edge closer to victory in Australia elections

Bloomberg

Australian PM Scott Morrison’s conservative government appeared poised to claim a come-from-behind victory in Australia’s election against the left-leaning Labor party.
While opinion polls had pointed to a Labor win, with more than half the votes counted the Australian Broadcasting Corp predicted the Liberal-National coalition would form government, though it
remained unclear whether it would get the 76 seats needed for a majority.
Morrison, 51, closed down Labor’s lead during the five-week campaign with his promise of sweeping tax cuts and record of sound economic management. He relentlessly attacked Labor leader Bill Shorten’s detailed policy platform that included tougher action against climate change and a boost to the minimum wage, saying Labor was a threat to growth just as the economy appears to be running out of steam.
“We outlined a comprehensive plan. The negative campaign against us has worked,” said Labor lawmaker Brendan O’Connor. The party’s leadership was “very anxious about the outcome,” he said.
With 52 percent of the vote counted, the ABC projected the coalition would win at least 73 seats and Labor 64, with 8 seats still in doubt.
Whoever wins will inherit an economy showing signs of strain amid record household debt, a falling property market and stagnant wages. Adding to the challenges, Australia must navigate the intensifying trade war between the US, its most important ally, and China, its biggest trading partner.
Vote counting showed Morrison’s conservatives have avoided losing ground in the key state of Queensland. Still, former Australian PM Tony Abbott was an early casualty, losing his his formerly ultra-safe Sydney seat and ending his 25-year parliamentary career.
A Newspoll published on Saturday putting Labor just three points ahead of the coalition, and the contest may be won or lost in a handful of seats held by a thin margin.
The battle in those districts is complicated by the growing support for populist, single-issue parties, which are tapping into voter disaffection after a chaotic decade of infighting in both the mainstream parties led to six changes of prime minister since 2007.
Independents are among the election’s 1,514 candidates. They could hold the balance of power in the Senate, making the task of legislating policy difficult for both a Morrison or Shorten-led government.
The coalition has been in office since 2013 and can boast a solid economic record over its two terms. The budget is on track to return to surplus
next year after more than a decade of deficits.
Labor’s campaign focussed on creating a “fairer society” with tax cuts aimed at the lower paid, and increased spending on hospitals, schools and childcare.
Shorten plans to pay for that in part by tightening tax concessions for stock market investors. He also plans to scale back tax incentives for property investors who helped fuel a housing boom that has priced many younger Australians out of the market.