Market Update – May 2019
May 15, 2019
Being too clever means you miss the coffee cups
June 13, 2019

Federal Election Results

While the exact composition of the 46th Australian Parliament is yet to be determined, Scott Morrison’s surprise election success offers the attractive prospect of 3 years of stable government.

Having been described even by his political foes as deserving a place in the ‘Liberal pantheon’, it is welcome relief to anticipate a government focused on longer term policy priorities rather than short term leadership skirmishes. Clearly investors have reacted positively to the Coalition win, with a strong rally in banking and other stocks on the first trading day after the surprise result.

Here are some of the other expected implications, particularly for self-managed super fund (SMSF) investors:

  • No change to the treatment of refundable franking credits
  • No reduction in contribution caps and other superannuation concessions
  • Implementation of super measures announced in previous federal budgets which had not been passed by the parliament at the time the election was called, including the new Superannuation Guarantee opt-out rules for high incoming earnings individuals with multiple employers
  • Re-emergence of the Government’s proposal to increase the maximum number of SMSF members from 4 to 6.
  • Introduction of 3 yearly audit cycles for some SMSF

As always, we look forward to helping you traverse the legislative landscape to make the most of all your opportunities.