'It's Time to Fuel Our Engines of Growth'
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V1 - AUSE01Z01MA THE AUSTRALIAN THURSDAY, MAY 23, 2019 ELECTION 19 • MIRACLE VICTORY ELECTION 19 • MIRACLE VICTORY theaustralian.com.au 5 Backers ‘It’s time to fuel our engines of growth’ of coal in ECONOMY economist Andrew Hanlan said. “This follows a strong and ex- call for tended upswing over recent years MICHAEL RODDAN which saw supply largely catch up JOYCE MOULLAKIS with demand.” action Westpac’s leading index, which Josh Frydenberg has declared the indicates the likely pace of econ- NATIONALS economy needs a “pro-growth omic growth into the near term, strategy” as construction work and also fell further over the past home building continue to fall month, driven by further declines JOE KELLY across the country and leading in approvals for dwelling construc- indicators of employment growth tion. The result was “a clear signal Nationals MPs will thrash-out hit record lows. that economic growth through the their demands for a new Coalition The Treasurer, who yesterday three quarters of 2019 is likely to be agreement at a partyroom meet- met the nation’s top financial reg- below trend”, Westpac chief econ- ing in Canberra today, with some ulators in Sydney, said the econ- omist Bill Evans said. urging the government to omy still faced headwinds, Meanwhile, official data re- strengthen its efforts to under- international trade tensions be- vealed the weakest rate of growth write a new coal-fired power plant tween the US and China were in skilled jobs vacancies in five in Queensland. weighing on growth and drought years as the Department of Jobs There will be no push to throw and floods in recent months had and Small Business figures fell to open the leadership, with Michael had a “significant impact” on their lowest point in two years. McCormack set to remain as economic activity. Mr Frydenberg said the “im- Nationals leader after the party Mr Frydenberg met Reserve pact of a slowdown in the housing performed strongly at the election Bank governor Philip Lowe and market is also being felt, so it’s not and received large swings in the deputy chairs of the banking the time for higher taxes; it’s the Queensland marginals. time for a pro-growth strategy”. The surprise victory for the Dr Lowe this week urged Coalition, which was on track last ‘It’s not the time Canberra to drive reforms to tax night to win up to 78 seats, has de- for higher taxes; policy, infrastructure spending fused any early push by Barnaby and the education sectors to help Joyce to regain the leadership. it’s the time for a support longer term economic The former leader will not pro-growth strategy growth. attend today’s meeting. Mr Frydenberg cited his plan- Some Nationals MPs privately JOSH FRYDENBERG ned tax cuts for lower and middle argue that Mr McCormack will TREASURER income earners, which is due to need to show he can muscle-up to provide relief for households over the Liberal Party, with Saturday’s coming months, the Coalition’s victory seen as a major endorse- regulator after the central bank $100 billion infrastructure spend- ment of Scott Morrison and his this week signalled two imminent ing plans and its support for presidential-style campaign. cuts to official interest rates that apprenticeships as key reforms to Victorian Nationals senator would put the cash rate at a new be launched by the government. Bridget McKenzie is also expected low and after the Australian Pru- “Tax is really important, so we to stay on as deputy, despite con- dential Regulation Authority have not just immediate relief but cerns about her engagement with launched a shake-up of rules that we also have a long-term struc- JOHN FEDER the backbench. had kept lower-income borrowers tural change,” he said. OH Property Group principal buyers agent Henny Stier, at a house she sold in Sydney’s Roseville, is confident of a housing market resurgence An early test for Mr McCor- out of the housing market. He noted the Coalition govern- mack will be whether the Nation- “The Australian economy faces ment’s plan to remove some in- als negotiate five or four seats at headwinds both internationally come tax brackets and address the cabinet table and if the minor and domestically,” Mr Frydenberg bracket creep. Agents’ phones now ‘ringing like crazy’ Coalition partner can secure other told a conference in Sydney. Citi economist Josh Williams senior portfolios amid speculation “The housing market has said the disappointing construc- MPs will push to regain the trade slowed. We’ve seen the budget tion figures meant annual GDP PROPERTY are saying their phones have been rate would be dropped to a new Prudential Regulation Authority’s prudential lending rules. The ministry from the Liberals. forecast for dwelling investment, growth would likely slow even fur- ringing like crazy since Monday,” record low on June 4. move would “help support credit group’s stock price has jumped in On current figures, there will be which had been growing at about ther to 1.7 per cent, down from an Ms Stier said. Property enthusiasts are also growth and could stem falling the last two trading days. 21 Nationals in the new parlia- 5.5 per cent per annum on average already sub-par 2.3 per cent. MICHAEL RODDAN “Most inner-city housing mar- buoyed after the unexpected house prices”. Ms Stier said the property ment. This means the Nationals over the last five years, forecast to “The leading indicators of em- kets seem to be holding up. We’re Coalition re-election, which ended “Improving access to credit will market had been hit by a slow- will comprise about 19 per cent of be down 7 per cent in 2019-20, then ployment growth such as job ad- Home buyers and sellers are hearing people saying: ‘Now we’re the threat of Labor’s negative support credit growth for the down in listings because sellers the joint partyroom if 35 Coalition another 4 per cent the year after.” vertisements and vacancies are coming “out of the woodwork” going to start to list our properties.’ gearing and capital gains tax banks, which has declined signifi- were wary of dumping their house senators are elected and the gov- His comments came as the weakening,” CommSec chief after Scott Morrison’s election We can start to see the level of reforms, and after the banking cantly from its peak in 2014, and in into a soft property market. ernment wins a majority of 78 in Australian Bureau of Statistics economist Craig James said. victory, which is tipped to spark a supply increase again. That brings regulator eased onerous restric- turn stem the fall in house prices. “Some markets have held the House of Representatives. said construction work done over “With … unemployment rates dramatic rise in auction listings the buyers out of the woodwork.” tions on borrowers securing loans Falling house prices are dampen- better than others, such as suburbs Nationals strategists suggested the March quarter fell 1.9 per cent ‘stuck’ at around 6 per cent in Tas- and arrest the slide in house prices. Analysts are expecting the in a bid to reduce the squeeze on ing household consumption and close to the city or within 20km of this would see the party holding — a slide that was led by falling mania, Queensland, Western Principal buyers agent at OH nation’s housing markets to be home buyers. This will allow contributing to a weaker growth the CBD. Prices there have held up only four seats in cabinet, arguing rates of home building and engin- Australia and South Australia, the Property Group in Sydney Henny reignited after Reserve Bank borrowers to add about $60,000 outlook for Australia,” Mr Yu said. fairly well,” Ms Stier said. there was no reason for the Prime eering work. Reserve Bank appears likely to Stier said the market had been governor Philip Lowe indicated more to a home loan of $1 million Listed residential developer “The problem has been a lack of Minister to agree to a fifth. “There was confirmation that pull the interest rate lever at its reinvigorated by the Coalition’s this week that two rate cuts would without any change in income. Stockland emerged yesterday as supply. Since Easter I’ve noticed a Mr Morrison has not run as a the home building sector is in a June 4 meeting,” Mr James said. election win. be needed to stop unemployment Daniel Yu, a senior analyst at one of the biggest winners from huge surge in inspection numbers conservative on energy policy, re- sharp downturn, after work “What is interesting is that I rising and get inflation back up to global ratings agency Moody’s, the re-election of the Morrison at what we call the entry price jecting arguments to pull Australia peaked in mid-2018,” Westpac BUSINESS P17 was speaking to some agents who its target band, hinting the cash said yesterday the Australian government and a relaxation of point of about $1m.” out of the Paris climate accord. He also unveiled a shortlist of a dozen energy projects that the govern- Defeated One Senate seat marks gloomy Labor outlook in battleground state ment would consider underwrit- ing. These were focused on gas and hydro projects in Victoria, NSW Banks fires UPPER HOUSE Coalition on HOUSE OF REPS Templeman to keep the seat. As counting continued THE SENATE and South Australia, and only one Likely outcome The Liberal Party led the seat yesterday in other seats in doubt, Likely outcome “very small” coal upgrade in NSW.