With the polls shifting further in favour of the Australian Labor Party in the wake of August’s defenestration of Prime Minister Turnbull, attention is starting to focus on the prospect of Prime Minister Bill Shorten. Paul outlined what we can expect from a Shorten government last week, but to recap, Labor has said it will alter the dividend imputation rules to stop investors from claiming a cash refund on franking credits that exceed their tax obligations. Labor also proposes to halve the capital gains tax (CGT) discount for all assets purchased after a yet-to-be-determined date after the next election, and ban negative gearing on property investments unless it is a new building. We also know that Labor will commit to a 50% renewable energy target for Australian electricity, and much higher carbon dioxide emissions reductions targets for Australia.
The ALP is also likely to commit to a massive (but not yet quantified) infrastructure spending target; curtail the current government’s proposed tax cuts for business; and further crack down on financial services in the wake of this year’s Royal Commission.
Here’s a look at 4 stocks that could benefit from Labor’s policy program.