Setting the Political Foundations

It is exciting times yet again! And for reasons to do with the building industry!

Well, not really. What the triggering of a double dissolution election over the passing (or more specifically, the blocking) of legislation to reintroduce the Australian Commission of Building and Construction is really about, is Malcolm Turnbull wanting to win an election in his own right.

Once he has done that, he and his Ministers will have a legitimacy they do not currently enjoy. Both in the Parliament and in the wider electorate. This is very much an internal revolution front bench that is in place at the moment, which came into existence without voter involvement. Many Liberal Party voters, and even Members, are still smarting from the agony of the dumping of Abbott. Turnbull’s honeymoon is over, and his chance to generate bold tax reform, much like the previous failed attempt at a republic, has passed.

Malcolm Turnbull had to find an issue to fight on and win an election on. He also had to have reason to call an early election. As the further away the election would be, the closer the contest would become. If opinion polls point to anything, they certainly point to a reduction in the Prime Minister's popularity. Fortunately for the Prime Minister however, Bill Shorten's popularity is far worse. Quite frankly it is plain disastrous.

So the Prime Minister is likely to carry the day. As long as the reason for an early election and the focus of the election issues to be fought, are sound.

It would seem that Turnbull has found the answer for both in just the one simple issue: Trade union thuggery, or so he will put it.

Of course the trade union movement has achieved much for our great country in its history, and is significantly responsible for the general high quality of life experienced by many hard working Australians today. It is also the case however, that "absolute power corrupts absolutely". This has clearly been the situation in the building and construction industry. A counterbalance, a check on power, be it of unions or businesses, is always appropriate.

This then is an argument that sounds quite reasonable, and this is why I would suggest to you that Malcolm Turnbull will win the day.

This could be quite exciting for property prices. With a freshly, actually elected Turnbull government and a renewed spring in its step, there's a greater probability of some bold economic reform.

More importantly however, may be the significant uplift to investor confidence that would result. A more clearly defined government and policy, as well as confirmation that negative gearing will be staying, all add up to a likely further acceleration to the already established trend in higher property prices.

Regards, Clifford Bennett