Is the new PM good for our economy?

Is the new PM good for our economy?

As Australia welcomes its 6th Prime Minister in nearly as many years (okay, 8 years) it’s hard to ignore the flow of jokes. 

‘Check your oil every time we get a new PM.’

But jokes aside, the instability of swapping leaders within short time frames should arguably have an impact on the Australian economy, and of course, this means us.

So, we’ve taken time out to assess what the real impact is.

The low down in 30-seconds

Unless you’ve been living off the grid, you’ve probably heard that treasurer Scott Morrison became the 30th Australian Prime Minister last week. 

Former PM Malcolm Turnbull said he’d call a leadership spill only if the 43 Liberal MPs who claimed to want a new leader evidenced their intentions in a signed letter.

Turnbull’s ultimatum backfired when 43 signatures came in. 

So, Turnbull called the spill, Morrison and Peter Dutton ran head to head and Morrison won.

What analysts say

Shane Oliver, the Chief economist at AMP Capital, told Dynamic Business that as a centrist, Morrison is more ‘market friendly’ than conservative Peter Dutton.

He explained that the outcome was reasonably good from an investment and economic perspective.

“This probably explains why the share market at the [Australian dollar] had a bounce on the news,” he said.

Ben Kearney, the Head of Policy and Government Relations at the Australian Lottery and Newsagents Associations said he felt small businesses would be impacted by the spill.

“Small businesses in Australia are not served well at all by the current leadership crises or political instability generally,” he said. 

“Our members need focused, practical, and long-term policy solutions to issues like inefficient small business IR laws, energy costs, digital equity and red tape that hurts small business.”

The upshot

Ultimately, Australia deserves a stable Government, focused on improving the welfare of its people, rather than internal leadership battles.

We can only hope that Morrison will take the helm and pull focus on what matters – the Australian people, and policies that grow our quality of living and economy.

The good news is that Morrison is equipped to make smart choices on our behalf, let’s just hope he settles in quickly and remembers this is his number 1 job.

Do you need support?

We assist families, individuals and businesses with loans that save them more, and match their goals. If you’re concerned about your finances, ask us for a free Home Loan review. 

We assess your existing loan, and research our databases to discover if a more suitable product is available for you. If a more appropriate loan is on the market, it is surprisingly easy to make the swap or ‘refinance’.

Refinancing is the process of replacing an existing loan with another, more suitable loan product. Checking your home loan on a regular basis may help you save thousands over the entire course of your mortgage. 

So get started now.

Financial Advice Disclaimer: This information is general in nature. Mortgage brokers do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.