So, will this new government have any significant impact on the Australian economy?
Here’s a breakdown of how things might change.
The federal government doesn’t directly set the cash rate, and the Reserve Bank of Australia is independent of the government.
In this sense, experts agree that it is likely another 0.25 per cent rise in interest rates will be coming in June.
The case to deliver another ‘business as usual’ rate hike of 25bp at the June board meeting, rather than something larger, is strong,” Commonwealth Bank of Australia (CBA) head of Australian economics Gareth Aird said.
At this stage, government debt is expected to hit around $1.2 trillion this year.
Based on figures released last week, the ALP has identified $18.9 billion in new spending over the forward estimates and $11.5 billion in savings.
Cost of living
Inflation is expected to keep climbing.
CBA forecasts underlying inflation to be 4.6 per cent by the end of the year.
This means the cost of doing your groceries or filling up your tanks with petrol is not expected to get any cheaper this year.
However, Albanese has also backed subsidising 90 per cent of childcare costs (at a cost of $5 billion for the government) which could give families some reprieve.
Wages are expected to rise. Albanese has backed a rise in the minimum wage as well as increasing wages for those in the aged care sector.
A rise in the minimum wage could see other wages lift and the declining unemployment rate could put pressure on workplaces to lift wages to attract workers.
CBA expected wages growth - as measured by the wage price index - to steadily rise over our forecast period to be 3.4 per cent by the end of 2023.