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Home , Andrew Robb, Joe Hockey, Mathias Cormann, Parliamentary secretary, Tony Abbott

Investor Relations. Corporate Communication

NEW GOVERNMENT INSIGHTS

OVERVIEW

Tomorrow, the first Abbott will be sworn in by Former Prime rightly once said the Governor-General. While there are a few new faces, that when you change the government, you change the it is largely the same Shadow Cabinet which has been country. As much as governments may carry in place for the past three years, bringing to an end characteristics of those which have gone before them, what has seemed like the longest election campaign in each has its unique style, challenges and agenda. our nation’s history. On election night told a television Though the September 7 election result delivered a audience that was once again ‘open for solid victory for the , it was not the predicted business’ and smaller government and economic growth bloodbath that would have seen Tony Abbott secure a would be at the forefront of the first term policy majority in the Senate. The Coalition recorded a agenda. national swing of 3.5 per cent against Labor and is MAGNUS has summarised the key information for you currently forecast to win 90 seats in the House of and your business, to ensure you are on a positive Representatives to Labor’s 55 seats. The Coalition made footing to start building a relationship with the new significant gains in Tasmania and , but the administration. predicted sweep of seats in Western Sydney and failed to materialise.

Regardless, the election of a delivers greater political certainty. The incoming Government is made up of many former members of the . Yet unlike that period of Coalition rule, there are a series of fiscal challenges which now confront the nation, such as declining revenue, partly due to some of the heat coming out of the mining boom.

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THE ABBOTT APPROACH - Key Policy Initiatives

Commission of Audit Exploration Development Incentive Scheme

Top of the Abbott agenda will be the appointment of a The Government will introduce the Exploration ‘once-in-a-generation’ Commission of Audit to focus on Development Incentive Scheme (EDI), allowing public sector efficiencies. The audit will examine all investors to deduct expenses associated with mining aspects of the Commonwealth Government and exploration against their taxable income. The EDI will whether they can be done better and more commence in July 2014 and be capped at $100 million cost-effectively. While this process may bring over the forward estimates. A tax credit will be considerable angst in some quarters, it follows similar provided to Australian resident shareholders for ‘green processes which the private sector has undertaken in fields’ exploration expenditure in Australia. recent times, sending a strong message to the Company Tax Cut entrenched bureaucracy. The company tax rate will be cut by 1.5 per cent, which Repeal of Two Key Taxes will see Australian companies paying a new tax rate of In the coming weeks, the Government will also instruct 28.5 per cent from July 2015. This term the government the public service to prepare legislation to repeal the will also release a white paper on further tax reform. carbon tax. Within the first 100 days, this legislation will Infrastructure be presented to , along with legislation to abolish the mining tax. Whether they pass the upper Tony Abbott has declared he wants his legacy to be house is another matter. that of the ‘infrastructure Prime Minister’.

The Coalition has mounted a case that the carbon tax Key initial priorities identified include the West Connex is a $9 billion a year impost on industry, detrimental to project in NSW, upgrading the Bruce Highway and the productivity and international competitiveness and has Gateway Motorway extension in Queensland, the East contributed to increases in gas and electricity prices West Link in Victoria and the Swan Bypass upgrade in across the country. Income tax cuts and fortnightly . pension and benefit increases linked to the carbon tax The Coalition has also promised to strengthen the role will be retained and re-badged as ‘cost of living relief’. of Infrastructure Australia, including the appointment of The new Government remains committed to a 5 per a Chief Executive Officer and a requirement that all cent reduction in emissions by 2020 and will establish a Commonwealth Infrastructure exceeding $100 million $3 billion Emissions Reduction Fund for projects be subject to analysis by Infrastructure Australia, to test associated with achieving this goal. cost-effectiveness and financial viability.

Repealing the mining tax aims to boost investor confidence and Australia’s sovereign risk profile, as well as reducing administrative and compliance costs for affected miners. The Minerals Resource Rent Tax on iron ore and coal profits has raised a fraction of what was forecast when first proposed. 2 Investor Relations. Corporate Communication

Other First-term Priorities:

• Introduction of a Paid Scheme granting • Introducing government-wide processes to reduce the working mothers six months' leave on full pay, capped cost of red and green tape, along with the at a salary of $150,000. The net cost of the scheme establishment of a ‘one-stop shop’ for environmental will be $6.1 billion, of which half will come from the approvals for major projects. 1.5 per cent levy on about 3000 Australian companies • Reinstatement of Building and earning more than $5 million in taxable income. This Construction Commission within three months. will be offset by a cut in company tax, from 30¢ in the • Commencing a Productivity Commission review into dollar to 28.5¢. the operation of Fair Work Laws within six months. • Reversing Labor’s recent tightening of fringe benefits • Reviewing current commercial progress for NBN Co tax rules related to novated car leases. and options to meet the Coalition’s broadband policy • Commencing a ‘root and branch’ review of Australia’s objectives, within six months. competition laws and frameworks within two months.

EARLY CHALLENGES

• With the Coalition falling short of a majority in the • When the new Senate takes effect from July next year, Senate, many of its flagship policies now face a the Coalition is likely to be forced to negotiate its potentially rough passage through the ‘House of legislative agenda with a collection of Review’. Despite a convincing win, Labor and the little-understood independents and minor parties, Greens appear to have rejected Tony Abbott’s claim including the Palmer United Party. Building positive of a mandate and have the ability to form a bloc, relations with these members as soon as possible will thwarting moves to repeal the carbon and mining be a top priority for the new Government. taxes.

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KEY PLAYERS IN THE NEW CABINET

Summarised below is information about some of the key Ministers in the new Cabinet. A full list of the new ministries is available by clicking here.

TONY ABBOTT - Prime Minister • Tony Abbott has been the Leader of the since defeating in a motion in December 2009. • First elected as Member for Warringah (NSW) at a by-election in 1994, he previously served in the Howard Government as the Federal Health and Ageing Minister from 2003 until 2007. • Before moving into politics, Mr Abbott worked as a journalist and was a feature writer for The Bulletin and The Australian. • A Rhodes Scholar, he holds a Bachelor of Law and Economics from the and a Masters of Politics and Philosophy from Oxford. An avid sportsman, Mr Abbott won two Blues in Boxing during his time at Oxford. • He was Executive Director of ‘Australians for ’ from 1993-94.

WARREN TRUSS - and Minister for Infrastructure & Regional Development • Mr Truss was elected to the Queensland seat of Widebay in 1990. • He served as a Minister in the Howard Government in a range of portfolios - Customs and Consumer Affairs, Community Services, Agriculture, Fisheries and Forestry, Transport, Regional Services and Trade. • Prior to entering Parliament, Mr Truss was a farmer.

JULIE BISHOP - Minister for Foreign Affairs • is the Deputy Leader of the Liberal Party and holds the seat of Curtin in WA. • Ms Bishop previously served in the Howard Government in the portfolios of Ageing, Education, Science and Training and Women’s Issues. • Ms Bishop was born and educated in , where she completed a Bachelor of Laws at the University of Adelaide. • In 1983 she moved to Perth where she practised as a commercial litigation solicitor; later becoming the managing partner of Clayton Utz's Perth Office. • Ms Bishop attended Harvard Business School in Boston and completed the Advanced Management Program for Senior Managers.

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KEY PLAYERS IN THE NEW CABINET (continued)

JOE HOCKEY - Treasurer • was first elected to the seat of North Sydney (NSW) in 1996. • Mr Hockey served as a Minister in the Howard Government in portfolios which included Small Business, Tourism, Human Services, Employment and Workplace Relations. • Before entering Parliament, Mr Hockey was a banking and finance lawyer. • He holds degrees in Arts and Law.

MALCOLM TURNBULL - Minister for Communications • Mr Turnbull was elected to the seat of Wentworth, NSW in 2004. • He served as the Minister for Environment and Natural Resources in the Howard Government and as Leader of the from September 2008 to November 2009. • Mr Turnbull’s qualifications include a Bachelor of Arts and Bachelor of Laws from the University of Sydney. A Rhodes Scholar, he has also completed a Bachelor of Civil Law (Hons) from Oxford University. • His career prior to entering Parliament includes employment as a journalist, barrister/solicitor, grazier, merchant banker, general counsel and secretary and Chairman and Managing Director, Goldman Sachs Australia.

IAN MACFARLANE - Minister for Industry • Mr Macfarlane has been the member for the Queensland seat of Groom since 1998. • He served as the Minister for Small Business and as the Minister for Industry, Tourism and Resources in the Howard Government. • Prior to entering Federal Parliament, he was an active agripolitician, occupying posts including President of the Queensland Graingrowers Association, President of the Grains Council of Australia and simultaneously holding executive positions with the Queensland and National Farmers Federations.

ANDREW ROBB - Minister for Trade & Investment • was first elected as the Member for Goldstein (VIC) in 2004. • Between 1990-97, Mr Robb served as Federal Liberal Party Director. In this time he orchestrated both and 's election campaigns. • Born in Victoria he grew up on a dairy farm in Epping, north of . Prior to entering Parliament, he worked in media and business consulting. • Mr Robb was the Executive Director of the National Farmers' Federation from 1985-88. • He has completed a Diploma of Agricultural Science from Dookie Agricultural College and an Honours Degree in Economics from . 5 Investor Relations. Corporate Communication

KEY PLAYERS IN THE NEW CABINET (continued)

GREG HUNT - Minister for the Environment • Mr Hunt was elected to the Victorian seat of Flinders in 2011, and served as to the Minister for the Environment and Heritage and Foreign Affairs in the Howard Government. • Prior to entering Parliament, Mr Hunt worked on the staff of and at McKinsey & Company. He was also Director of Strategy for the World Economic Forum (Geneva). • Mr Hunt has a Bachelor of Arts (Hons) and Bachelor of Laws (Hons I) from Melbourne University and a Master of Arts from Yale.

MATHIAS CORMANN - Minister for Finance • Senator Cormann was appointed to the Senate to represent WA in June 2007. • Born in , he graduated in law at the Flemish University of Louvain (Leuven), before migrating to Australia. • Senator Cormann has worked as a Chief of Staff to WA Government Ministers, as a senior adviser to then Premier and as an advisor to then Federal Justice and Customs Minister Chris Ellison. • Until recently, Senator Cormann was the Shadow Assistant Treasurer and Shadow Minister for Financial Services and Superannuation.

ARTHUR SINODINOS AO - Assistant Treasurer

• Senator Sinodinos has been a Senator for NSW since October 2011. • He has previously served as the Chief of Staff and Senior Economics Advisor to former Prime Minister John Howard. • He resigned his post in 2006 to work at Goldman Sachs JBWere and most recently the National Australia Bank. • In September 2012, Senator Sinodinos joined the Coalition frontbench when he was appointed to the position of Shadow Parliamentary Secretary to the Leader of the Opposition.

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BUILDING A RELATIONSHIP WITH THE NEW GOVERNMENT

Building a solid relationship with the new Government Key members of the MAGNUS team, John Rochester is vital for all businesses to ensure your issues are and Rob Newton, have unique insights and knowledge understood by the Government as it seeks to having worked in Ministerial advisor positions in both implement its policy agenda. the Federal and State spheres. They are adept at knowing what information government requires from Traditionally a new government brings with it changes your business and how best to build a positive to the bureaucracy both in Canberra and at a local partnership with a new government from day one. level.

MAGNUS can assist you in ensuring you get off to a strong start with the Government, advising on the best way to navigate your way through the new landscape.

GOVERNMENT ENGAGEMENT TRAINING

MAGNUS has developed a ‘Navigating the New Government’ training workshop which is a useful starting point for you and your team as you begin to understand and interact with the new Government. Topics include:

• key players and drivers • understanding how decisions are made • the process of policy development • effective government engagement • presenting your case • effective business to government communication.

To find out more about the training workshop or how we can assist your business in communicating with government, contact the MAGNUS team.

JOHN ROCHESTER ROB NEWTON [email protected] [email protected] +61 2 8999 1008 +61 8 6160 4904

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