Australian government to find 2018 politically tricky

Subject

The political and economic outlook.

Significance

Prime Minister Malcolm Turnbull reshuffled his cabinet on December 19, including bringing in five new members. He says this brings “new skills and energy to the front bench” and creates a geographically representative balance. The Labor opposition says rifts within the Liberal and National parties, which govern in coalition, are behind the reshuffle. The coalition faces various difficulties in 2018, not least as the federal Labor party maintains its election-winning lead in opinion polling and as economic pressures emerge.

Impacts

• Australian financial services will face more intense scrutiny.
• If interest rates rise, this could pose problems for indebted households.
• The cabinet reshuffle could see further intra-coalition frictions.