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State of the Nation Report 20, Focus on Australian Politics
State of the Nation
Australia
Spotlight on Australian Politics
29th April 2015
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Serious Economic Issues
State of the Nation 2015
Unemployment, Commodity prices, 2014 Federal Budget
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Three Intertwined Themes
State of the Nation 2015
Party Policies, Economic Pressures, International Context
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Political Context:
the Government in review
State of the Nation 2015
the Government in review at the half-way mark
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September 2013 Election Result
Base: Australian electors aged 18+
Source: Australian Electoral Commission, 7 September 2013
53.5% 46.5%
vs.
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Australia’s House of Representatives (150 Seats)
Source: Australian Electoral Commission
90 (L-NP)
55 (ALP) 1 (GRN)
1 (KAP)
1 (PUP)
2 (IND)
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Key Commodities:
Iron Ore, Coal, Oil
State of the Nation 2015
End of the Commodities Boom tests the Abbott Government
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Australia’s Biggest Exports (Goods & Services) (2013-14)
Rank Product $AUD Billions
1. Iron ore $74.7
2. Coal $40.0
3. Natural gas $16.3
4. Education $15.7
5. Tourism $13.9
6. Gold $13.3
7. Crude Oil $10.4
8. Beef $6.4
9. Wheat $6.1
10. Aluminium $6.1
Base: Goods and services exported during the 2013-2014 financial year.
Source: Department of Foreign Affairs and Trade
Discover your edgeSource: Index Mundi; Monthly data
Crude Oil Price (1985 – 2015)
- $US per barrel
-$10
$10
$30
$50
$70
$90
$110
$130
$150
CrudeOilPrice-$USDperbarrel
1985-2002: Oil price averaged $20.90
July 2008: Oil price record high - $147.50
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-$10
$10
$30
$50
$70
$90
$110
$130
$150
CrudeOilPrice-$USDperbarrel
Source: Index Mundi; Monthly data
Crude Oil Price (2003 – 2015)
- $US per barrel
Howard Government
(1996-2007)
Rudd-Gillard-Rudd Government
(2007-2013)
Abbott Government
(2013-)
September 2013
$106.31
November 2007
$94.76
Oil Price Peak
$147.50
Discover your edgeSource: Index Mundi; Monthly data
Thermal Coal Price (1985 – 2015)
- $US per metric ton
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
ThermalCoalPrice-$USDpermetricton
July 2008: Thermal coal record high - $192.86
Current Price
$65
1985-2002: Thermal coal averaged $33.33
Discover your edgeSource: Index Mundi; Monthly data
Thermal Coal Price (2003 – 2015)
- $US per metric ton
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
IronOrePrice-$USDperdrymetricton
Howard Government
(1996-2007)
Rudd-Gillard-Rudd Government
(2007-2013)
Abbott Government
(2013-)
Current Price
$65
September 2013
$83.16
November 2007
$90.64
Thermal Coal Peak
$192.86
Discover your edgeSource: Index Mundi; Monthly data
Iron Ore Price (1985 – 2015)
- $US per dry metric ton
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
IronOrePrice-$USDperdrymetricton
1985-2002: Iron ore averaged $12.54
Feb. 2011: Iron ore record high - $191.70
Current Price
$55
Discover your edgeSource: Index Mundi; Monthly data
Iron Ore Price (2003 – 2015)
- $US per dry metric ton
Iron Ore Peak
February 2011 - $191.70
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
IronOrePrice-$USDperdrymetricton
Howard Government
(1996-2007)
Rudd-Gillard-Rudd Government
(2007-2013)
Abbott Government
(2013-)
Current Price
$55
September 2013
$134.19
November 2007
$36.63
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Collapse in the Iron Ore price leaves
huge revenue ‘hole’
- particularly in WA
State of the Nation 2015
End of the Commodities Boom tests the Abbott Government
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Senate
State of the Nation 2015
Dysfunctional Senate is a problem
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Australian Senate (76 Seats)
Source: Australian Electoral Commission
33 (L-NP)
25 (ALP) 10 (GRN)
1 (PUP)
1 (Xenophon)
1 (LDP)
1 (AMEP)
1 (Family First)
3 (IND)
8 (Other)
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States
State of the Nation 2015
It’s different State by State
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Coalition Seats by State
Source: Australian Electoral Commission
NSW
30
QLD
22
VIC
16
WA
12
SA
6
TAS
3
NT
1
ACT
0
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Politics in 2015
State of the Nation 2015
Leadership and Disunity
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L-NP
ALP
Greens
Palmer
Independents/
Others
Base: Australian electors aged 18+
Source: Roy Morgan Research Multi-Mode Morgan Poll, April 11/12 & 18/19, 2015
45.5%
38.5%
33.4%
38.0%
8.7%
12.0%
5.5%
1.0%
6.9%
10.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
September 2013
Election
April 2015
Voting Intention
- Primary Vote
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Australians’ Voting Intention
Base: Australian electors aged 18+
Source: Roy Morgan Research Multi-Mode Survey, April 11/12 & 18/19, 2015
47% 53%
Government Confidence 88.5pts
vs.
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Voting Intention
- Federal Two Party Preferred Vote
Base: Australian electors aged 18+
Source: Roy Morgan Research; weekly interviews
44.5%
55.5%
30%
35%
40%
45%
50%
55%
60%
65%
70%
L-NP ALP
Julia Gillard elected after first
Hung Parliament since 1940.
ALP (50.1%); L-NP (49.9%)
Abbott-led L-NP wins Government
after 6 years in Opposition.
L-NP (53.5%); ALP (46.5%)
Howard re-elected for 4th term at 2004
Election. Latham's stumbles and
Tasmanian Timber Union support help
Howard to win.
L-NP (52.5%); ALP (47.5%)
Rudd-led ALP wins Government after 11 years in
Opposition.
ALP (52.7%); L-NP (47.3%).
Brendan Nelson is the new Oppn. Leader
Beazley replaces
Latham as
Oppn. Leader
George Bush re-
elected as US
President
AWB Iraqi
bribery scandal
"Oil for Food"
Malcolm Turnbull
replaces Nelson as
Oppn. Leader
Tony Abbott replaces
Turnbull as Oppn.
Leader
Global Financial
Crisis begins as
Lehman Brothers
bankrupts
Rudd
Government
stimulus
packages
Barack Obama
elected US
President
Oil @ $150 a
barrel
RBA raises interest rates
to 12 year high of 7.25%
Julia Gillard proposes
to introduce a price on
carbon by 2012
Kevin Rudd wins ALP
leadership ballot
57-45 over Julia Gillard
Support for L-NP
plummets after
Hockey delivers his
first Budget.
47.0%
53.0%
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Disunity is death
State of the Nation 2015
Leadership issues have plagued the L-NP
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Government Confidence
88.5
State of the Nation 2015
More believe country going in the wrong direction
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80
90
100
110
120
130
140
150
160
2013 Federal Election results in
a comprehensive victory for the
Coalition led by Tony Abbott
Labor led by
Kevin Rudd wins
the 2007 Federal
Election
Base: Australian electors aged 18+
Source: Roy Morgan Research; weekly interviews
2010 Federal Election results in a
‘Hung Parliament’. Gillard is
returned with the backing of 3
Independents & 1 Green
152.5 – Oct 2009
April 2015
88.5
Government Confidence Rating over time
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Leadership –
a story of Disapproval
State of the Nation 2015
Australians report low approval of both leaders
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PM Tony Abbott v Bill Shorten
Base: Australian electors aged 18+
Source: Roy Morgan Research Telephone Survey, April 21-23, 2015.
Better PM:
44% Abbott, 39% Shorten
Job Performance
Abbott: 53% Disapprove, 37% Approve
Shorten: 48% Disapprove, 34% Approve
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Preferred Liberal Party Leader
Base: Australian electors aged 18+
Source: Roy Morgan Research Telephone Survey, April 21-23, 2015.
All electors: Malcolm Turnbull (38%);
Julie Bishop (27%) and Tony Abbott (12%).
L-NP supporters: Malcolm Turnbull (30%); Tony
Abbott (25%); and Julie Bishop (25%).
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Preferred Liberal Leader – All electors
0
10
20
30
40
50
60
Malcolm Turnbull
Julie Bishop
PM Tony Abbott
38%
6%
7%
24%
12%
27%
30%
51%
Joe Hockey 5%
31%
13%
Base: Australian electors aged 18+
Source: Roy Morgan Research Telephone Surveys (February 2008 – April 2015)
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Preferred Liberal Leader – L-NP supporters
0
10
20
30
40
50
60
Malcolm Turnbull
Julie Bishop
PM Tony Abbott
30%
8%
5%
24% 25%
25%
49%
13%
4%
Joe Hockey
6%
12%
35%
Base: Australian electors aged 18+
Source: Roy Morgan Research Telephone Surveys (February 2008 – April 2015)
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Preferred ALP Leader – All electors
0
5
10
15
20
25
30
Jun-14 Oct-14 Jan-15 Apr-15
Tanya Plibersek
Anthony Albanese
Bill Shorten
23%
22%
15%
16%
21%
13%
Wayne Swan
10%9%
Base: Australian electors aged 18+
Source: Roy Morgan Research Telephone Surveys June 2014 – April 2015.
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Preferred ALP Leader – ALP supporters
0
5
10
15
20
25
30
35
40
Jun-14 Oct-14 Jan-15 Apr-15
Tanya Plibersek
Anthony Albanese
Bill Shorten
30%
32%
13%
16%
26%
11%
Wayne Swan
9%
10%
Base: Australian electors aged 18+
Source: Roy Morgan Research Telephone Surveys June 2014 – April 2015.
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Politicians rate poorly for
honesty and ethics
State of the Nation 2015
Image of professions – shows politicians below most
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Image of Professions
- Federal Politicians cf. Nurses, Doctors, Dentists, Engineers, Police and Judges
Base: Australians aged 14+
Source: Roy Morgan Research; Image of Professions Survey
Nurses
Doctors
Engineers
Dentists
State Supreme Court Judges
Police
Federal Politicians
86%
92%
62%
84%
53%
74%
62%
71%
52%
69%
61% 69%
19%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Federal Politicians
State MPs
Image of Professions
- Federal Pollies cf. Pollsters, Journalists, State MPs & Union Leaders
Base: Australians aged 14+
Source: Roy Morgan Research; Image of Professions Survey
Union Leaders
TV Reporters
Newspaper Journalists
Public Opinion Pollsters
Talk-Back Radio Announcers
34%
29%
12%
18%18%
16%16%
15%
21%
14%
9%
14%
19%
13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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Image of Professions
- Federal Pollies cf. Stock Brokers, Real Estate Agents, Advertisers & Car Salesmen
Base: Australians aged 14+
Source: Roy Morgan Research; Image of Professions Survey
Business Executives
Car Salesmen
Stock Brokers
Real Estate Agents
Advertisers
Federal Politicians
22%
18%
19%
13%
19%
12%
11%
9%
9%
5%4%
4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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Economic Issues continue to worry
Australians.
Issues
49% say economic issues are the most important issues facing Australia – Economy, economic problems,
interest rates, unemployment, the Federal Budget, cost of living, etc.
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Most Important Issues Facing Australia
Base: Australian population aged 14+
Source: Roy Morgan Research; Nation-wide telephone poll, February 4-6, 2014 (n = 664)
0%
10%
20%
30%
40%
50%
60%
Nov05
Apr-06
May-08
Nov-08
May-09
Nov-09
Feb-10
Jun-10
Sep-10
Dec-10
Feb-11
Mar-11
Jun-11
Jul-11
Oct-11
Jan-12
May-12
Jul-12
Nov-12
Jan-13
Apr-13
Jul-13
Aug-13
Oct-13
Feb-14
Jun-14
Oct-14
Jan-15
Apr-15
Environmental Issues
Religion/ Immigration/
Human Rights
Politics & Leadership
Economic Issues
Social Issues
14%
15%
9%
4%
4%
49%
6%
10%
9%
13%
3%
War & Terrorism
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‘Bravery’ trumps ‘Popularity’
State of the Nation 2015
The lessons of history show the way….
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Political/Economic Pressures
State of the Nation 2015
Australian Financial Indicators: Aussie Dollar, Interest Rates, All Ordinaries
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Exchange Rates (1969 - 2015)
- AUD cf. USD
Source: Reserve Bank of Australia
Parity
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
Commodities
Boom
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RBA Interest Rates
- by Prime Minister’s first, 18th and last month in office
Source: Reserve Bank of Australia
Monthly figures for the first month as Prime Minister; the 18th month as Prime Minister; the last month as Prime Minister
2.75%
4.50%
6.75%
7.50%
8.50%
16.73%
8.05%
4.45%
2.25%
4.25%
3.00%
5.00%
5.25%
11.07%
8.64%
18.80%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Tony
Abbott
Julia
Gillard
Kevin
Rudd
John
Howard
Paul
Keating
Bob
Hawke
Malcolm
Fraser
Gough
Whitlam
1st Month
18th Month
Last Month
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S&P/ASX 200
Source: Reserve Bank of Australia; value as at the last business day of each month
4,966
5,191
4,927
4,803
5,052
5,135
5,219
5,425
5,320
5,352
5,190
5,405
5,395
5,489 5,493
5,396
5,633 5,626
5,293
5,527
5,313
5,411
5,588
5,929
5,892
3,500
4,000
4,500
5,000
5,500
6,000
6,500
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3.0%
4.0%
3.9%
3.3%
2.4%
2.1%
1.9%
3.0%
4.2%
4.5%
5.0%
3.7%
2.5%
1.5%
1.3%
2.1%
2.9%
3.1%
2.8%
2.7%
3.3%
3.6%
3.5%
3.1%
1.6%
1.2%
1.4%
2.2%
2.5%
2.4%
2.2%
2.7%
2.9%
3.0%
2.2%
1.6%
1.3%
0%
2%
4%
6%
8%
10%
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
Annual Inflation Rate
- Percentage change from previous year*
*The figures provided represent the difference between the current quarterly inflation rate figure and the same quarter 12 months ago.
Source: Australian Bureau of Statistics
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Consumer Confidence
111.8
State of the Nation 2015
ANZ-Roy Morgan Consumer Confidence
Base: Australian population aged 14+
Source: Roy Morgan Research; April 2015
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Australia is nowhere near as
confident as Asian neighbours
Australasian Consumer Confidence
ANZ Roy Morgan Consumer Confidence shows Australia behind Indonesia 154.1,
China 144.5 and even our neighbours in New Zealand 124.6
Source: Roy Morgan Research; March 2015
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ANZ-Roy Morgan Consumer Confidence
- Monthly Asia-Pacific Consumer Confidence
Base: Asia-Pacific countries; March 2015
Base: Australians aged 14+ ; April 2015
Source: Roy Morgan Research
154.1
144.5
124.6
108.8
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
Indonesia China New Zealand Australia
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Base: Australian population aged 14+
Source: Roy Morgan Research;
Monthly figures for the first month as Prime Minister; the 18th month as Prime Minister; the last month as Prime Minister
124.1 123.6
126.8
123.7
83.0
97.4
103.0
119.2
111.8
111.0
113.5 112.4
96.2
118.2
103.8
95.6
80
90
100
110
120
130
140
Tony
Abbott
Julia
Gillard
Kevin
Rudd
John
Howard
Paul
Keating
Bob
Hawke
Malcolm
Fraser
Gough
Whitlam
1st Month
18th Month
Last Month
ANZ-Roy Morgan Consumer Confidence
- by Prime Minister’s first, 18th and last month in office
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ANZ-Roy Morgan Consumer Confidence (Monthly)
- by State
Base: Australians aged 14+
Source: Roy Morgan Research; March 2015
113.0 112.7
112.1
111.4
108.8
105.5
March 2015
Australia
111.3
100
102
104
106
108
110
112
114
South
Australia
Victoria Western
Australia
New
South
Wales
Queensland Tasmania
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ANZ-Roy Morgan Consumer Confidence vs All Ords
1986 - 2015
Source: Reserve Bank of Australia; value as at the last business day of each month
Base: Australian population aged 14+
Source: Roy Morgan Research; Monthly data
0
20
40
60
80
100
120
140
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
All Ordinaries Share Index (LHS)
ANZ-Roy Morgan Consumer Confidence (RHS)
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ANZ-Roy Morgan Consumer Confidence vs All Ords
2007 - 2015
Source: Reserve Bank of Australia; value as at the last business day of each month
Base: Australian population aged 14+
Source: Roy Morgan Research; Monthly data
80
90
100
110
120
130
140
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
All Ordinaries Share Index (LHS)
ANZ-Roy Morgan Consumer Confidence (RHS)
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ANZ-Roy Morgan Consumer Confidence vs All Ords
2013 - 2015
Source: Reserve Bank of Australia; value as at the last business day of each month
Base: Australian population aged 14+
Source: Roy Morgan Research; Monthly data
100
105
110
115
120
125
5,000.0
5,100.0
5,200.0
5,300.0
5,400.0
5,500.0
5,600.0
5,700.0
5,800.0
5,900.0
6,000.0
ANZ-Roy Morgan Consumer Confidence (RHS)
All Ordinaries Share Index (LHS)
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Business Confidence
112.4
State of the Nation 2015
Roy Morgan Business Confidence
Base: Australian Businesses
Source: Roy Morgan Research; March 2015
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Business Confidence
Base: Australian Businesses
Source: Roy Morgan Research; Monthly data
131.5
99.8
118.7
105.4
123.8
136.3
80
90
100
110
120
130
140
112.4
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Roy Morgan Business Confidence (March quarter)
- by State
Note: ACT and NT have been excluded from chart due to low sample size.
Base: Australian Businesses
Source: Roy Morgan Research; January 2015 to March 2015
117.9
115.5
112.4
108.4
107.4
106.0
100
105
110
115
120
Tasmania Victoria New South Wales Queensland South Australia Western Australia
Australian
Business Confidence
111.0
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Roy Morgan Business Confidence
- by Business Size
Base: Australian Businesses
Source: Roy Morgan Research; 6 month moving averages
112.7
111.3
124.6
120.5
80
90
100
110
120
130
140
150
160
Micro
Medium/Large
All Businesses
Small
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Unemployment at 10.8% is
far too high
State of the Nation 2015
2.3 million Australians unemployed or under-employed. Young people hit the hardest.
Source: Roy Morgan Research; March 2015
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Level of Workforce Unemployment
Source: Roy Morgan Research; Monthly data
Source: Australian Bureau of Statistics; Monthly data
9.4%
6.9%
7.3%
0%
2%
4%
6%
8%
10%
12%
14%
%ofworkforce
ABS Seasonally Adjusted 6.1%
ABS Original (Trend) 6.2%
Roy Morgan Research
10.8%
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Roy Morgan
Research
Australian
Bureau of
Statistics
Base: Australians aged 14+
Source: Roy Morgan Research; Telephone Polls – June 2013, June 2014 & April 2015.
58%
55%
60%
21%
33%
29%
0%
10%
20%
30%
40%
50%
60%
70%
June 2013 June 2014 April 2015
Unemployment – 60% of Australians now believe Roy
Morgan 10.8% is closer to reality
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Unemployment by Age
Base: Australians in the workforce aged 14+
Source: Roy Morgan Research; 6 month moving average
7.9%
14.5%
5.7%
4.9%
3.3%
0%
5%
10%
15%
20%
%workforceunemployedineachagegroup
14-29 16.4%
45-59 7.2%
60 and over 7.6%
Australians 14+
30-44 10.3%8.6%
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Unemployment & Under-Employment
Australia vs. the United States of America
Source: Roy Morgan Research; Monthly data
Source: Australian Bureau of Statistics; Monthly data
Source: Bureau of Labor Statistics; Monthly data
15.9%
18.5%
5.0%
5.5%
8.4%
11.0%
5.1% 6.1%
0%
5%
10%
15%
20%
25%
Australia:
Roy Morgan Unemployment & Under-employment
USA: U6 Unemployment
USA: U3 Unemployment
Australia:
ABS Unemployment
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US Unemployment – Policy Makers Aware
Source: The Wall Street Journal
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Roy Morgan Unemployment & Under-Employment
- by Prime Minister’s first, 18th and last month in office
*Total Australian Unemployment & Under-employment rose above 2 million Australians in December 2011 – it has stayed above 2 million ever since
– 40 straight months.
Base: Australians in the workforce aged 14+
Source: Roy Morgan Research; Monthly figures for the first month; the 18th month; the last month as Prime Minister
1st
Month
18th
Month Change
Last
Month
PM Tony Abbott 18.3% 18.5% +0.2 pts (incumbent)
PM Julia Gillard 12.4% 16.8% +4.4 pts 18.9%
PM Kevin Rudd 11.8% 16.6% +4.8 pts 12.4%
1st
Month
18th
Month Change
Last
Month
PM Tony Abbott 2.286 million 2.344 million +58,000 (incumbent)
PM Julia Gillard 1.435 million 2.012 million* +577,000 2.346 million
PM Kevin Rudd 1.263 million 1.829 million +566,000 1.435 million
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Unemployment’s economic
consequences
State of the Nation 2015
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International Context
State of the Nation 2015
Global unrest; Asian engagement; trade deals
Discover your edgeBase: Goods and services exported during the 2013-2014 financial year.
Source: Department of Foreign Affairs and Trade
Rank Country $AUD Billions % Share of Total
1. China $159.6 23.9%
2. Japan $72.2 10.8%
3. United States $58.2 8.7%
4. South Korea $34.6 5.2%
5. Singapore $29.5 4.4%
6. New Zealand $22.7 3.4%
7. United Kingdom $20.3 3.0%
8. Malaysia $19.9 3.0%
9. Thailand $18.8 2.8%
10. Germany $16.8 2.5%
Australia’s Biggest Trading Partners (2013-14)
Discover your edgeSource: Australian Bureau of Statistics
-5%
0%
5%
10%
15%
20%
China GDP growth
Australian GDP growth
Australian average GDP growth
(1980-2014) - 3.2%
China average GDP growth
(1980-2014) - 9.7%
China vs. Australia - GDP Growth
1980 - 2015
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Unemployment and Trade =
tension
State of the Nation 2015
Winners and Losers
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Terrorism and War
State of the Nation 2015
Increased concern means terrorism and war is as big a concern globally as the economy
Discover your edge
Indonesian – Australian
relations
State of the Nation 2015
The biggest sleeper of all
Discover your edge
Asylum Seekers – a sleeper
State of the Nation 2015
The complex set of issues surrounding asylum seeker has not been resolved
Discover your edge
In Summary
State of the Nation 2015
Discover your edge
Both Consumer Confidence & Business
Confidence are down from the 2013 Federal
Election.
In Summary:
State of the Nation 2015
Discover your edge
Economic Issues still dominate for
Australians.
In Summary:
State of the Nation 2015
Discover your edge
The end of the ‘Commodities Boom’ is an
economic ‘shock’ but provides opportunities.
In Summary:
State of the Nation 2015
Discover your edge
Despite falling behind, the Abbott
Government has every chance to win the
next Election.
In Summary:
State of the Nation 2015
Discover your edge
Implementing necessary but unpopular
reforms can often be the best way to
regain support.
In Summary:
State of the Nation 2015
Discover your edge
Unemployment and Under-employment
remain a huge problem in Australia – now
well above USA.
In Summary:
Australia’s real level of unemployment (10.8% - 1.37 million) and under-employment (7.7% - 970,000) is far higher than the
official ABS unemployment estimate (6.1% - 760,000). More than 2.34 million Australians are looking for work or looking
for more work. Youth unemployment is particularly bad (16.4%).
Discover your edge
A prediction for the next election:
In Summary:
State of the Nation 2015
Discover your edge
It’s going to be an interesting 18 months…
State of the Nation 2015
The Key Areas of Change
State of the Nation Report 20, Focus on Australian Politics
Discover your edge
Real Unemployment – too high
Interest Rates – too high
Iron Ore Prices – too low
The Chinese Economy – in decline!
Discover your edge
Day of reckoning: why our economy needs a recession
STIRLING LARKIN, APRIL 25, 2015
Wrong, Federal Government needs to tackle the issues now:
• Increase workplace productivity – (Abbott should step down or break naive
promise of no IR reform)
• Eliminate the cash economy
• Tackle corruption at every level of the economy – corporate, unions & government.
• Real competition in the private sector
• Open Government tenders – too many ‘tenders’ now awarded to ‘mates’
• Accurate Government data – increase government efficiency by tendering services.
eg. ABS surveys
State of the Nation Report 20, Focus on Australian Politics

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State of the Nation Report 20, Focus on Australian Politics

  • 2. State of the Nation Australia Spotlight on Australian Politics 29th April 2015
  • 3. Discover your edge Serious Economic Issues State of the Nation 2015 Unemployment, Commodity prices, 2014 Federal Budget
  • 4. Discover your edge Three Intertwined Themes State of the Nation 2015 Party Policies, Economic Pressures, International Context
  • 5. Discover your edge Political Context: the Government in review State of the Nation 2015 the Government in review at the half-way mark
  • 6. Discover your edge September 2013 Election Result Base: Australian electors aged 18+ Source: Australian Electoral Commission, 7 September 2013 53.5% 46.5% vs.
  • 7. Discover your edge Australia’s House of Representatives (150 Seats) Source: Australian Electoral Commission 90 (L-NP) 55 (ALP) 1 (GRN) 1 (KAP) 1 (PUP) 2 (IND)
  • 8. Discover your edge Key Commodities: Iron Ore, Coal, Oil State of the Nation 2015 End of the Commodities Boom tests the Abbott Government
  • 9. Discover your edge Australia’s Biggest Exports (Goods & Services) (2013-14) Rank Product $AUD Billions 1. Iron ore $74.7 2. Coal $40.0 3. Natural gas $16.3 4. Education $15.7 5. Tourism $13.9 6. Gold $13.3 7. Crude Oil $10.4 8. Beef $6.4 9. Wheat $6.1 10. Aluminium $6.1 Base: Goods and services exported during the 2013-2014 financial year. Source: Department of Foreign Affairs and Trade
  • 10. Discover your edgeSource: Index Mundi; Monthly data Crude Oil Price (1985 – 2015) - $US per barrel -$10 $10 $30 $50 $70 $90 $110 $130 $150 CrudeOilPrice-$USDperbarrel 1985-2002: Oil price averaged $20.90 July 2008: Oil price record high - $147.50
  • 11. Discover your edge -$10 $10 $30 $50 $70 $90 $110 $130 $150 CrudeOilPrice-$USDperbarrel Source: Index Mundi; Monthly data Crude Oil Price (2003 – 2015) - $US per barrel Howard Government (1996-2007) Rudd-Gillard-Rudd Government (2007-2013) Abbott Government (2013-) September 2013 $106.31 November 2007 $94.76 Oil Price Peak $147.50
  • 12. Discover your edgeSource: Index Mundi; Monthly data Thermal Coal Price (1985 – 2015) - $US per metric ton $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 ThermalCoalPrice-$USDpermetricton July 2008: Thermal coal record high - $192.86 Current Price $65 1985-2002: Thermal coal averaged $33.33
  • 13. Discover your edgeSource: Index Mundi; Monthly data Thermal Coal Price (2003 – 2015) - $US per metric ton $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 IronOrePrice-$USDperdrymetricton Howard Government (1996-2007) Rudd-Gillard-Rudd Government (2007-2013) Abbott Government (2013-) Current Price $65 September 2013 $83.16 November 2007 $90.64 Thermal Coal Peak $192.86
  • 14. Discover your edgeSource: Index Mundi; Monthly data Iron Ore Price (1985 – 2015) - $US per dry metric ton $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 IronOrePrice-$USDperdrymetricton 1985-2002: Iron ore averaged $12.54 Feb. 2011: Iron ore record high - $191.70 Current Price $55
  • 15. Discover your edgeSource: Index Mundi; Monthly data Iron Ore Price (2003 – 2015) - $US per dry metric ton Iron Ore Peak February 2011 - $191.70 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 IronOrePrice-$USDperdrymetricton Howard Government (1996-2007) Rudd-Gillard-Rudd Government (2007-2013) Abbott Government (2013-) Current Price $55 September 2013 $134.19 November 2007 $36.63
  • 16. Discover your edge Collapse in the Iron Ore price leaves huge revenue ‘hole’ - particularly in WA State of the Nation 2015 End of the Commodities Boom tests the Abbott Government
  • 17. Discover your edge Senate State of the Nation 2015 Dysfunctional Senate is a problem
  • 18. Discover your edge Australian Senate (76 Seats) Source: Australian Electoral Commission 33 (L-NP) 25 (ALP) 10 (GRN) 1 (PUP) 1 (Xenophon) 1 (LDP) 1 (AMEP) 1 (Family First) 3 (IND) 8 (Other)
  • 19. Discover your edge States State of the Nation 2015 It’s different State by State
  • 20. Discover your edge Coalition Seats by State Source: Australian Electoral Commission NSW 30 QLD 22 VIC 16 WA 12 SA 6 TAS 3 NT 1 ACT 0
  • 21. Discover your edge Politics in 2015 State of the Nation 2015 Leadership and Disunity
  • 22. Discover your edge L-NP ALP Greens Palmer Independents/ Others Base: Australian electors aged 18+ Source: Roy Morgan Research Multi-Mode Morgan Poll, April 11/12 & 18/19, 2015 45.5% 38.5% 33.4% 38.0% 8.7% 12.0% 5.5% 1.0% 6.9% 10.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% September 2013 Election April 2015 Voting Intention - Primary Vote
  • 23. Discover your edge Australians’ Voting Intention Base: Australian electors aged 18+ Source: Roy Morgan Research Multi-Mode Survey, April 11/12 & 18/19, 2015 47% 53% Government Confidence 88.5pts vs.
  • 24. Discover your edge Voting Intention - Federal Two Party Preferred Vote Base: Australian electors aged 18+ Source: Roy Morgan Research; weekly interviews 44.5% 55.5% 30% 35% 40% 45% 50% 55% 60% 65% 70% L-NP ALP Julia Gillard elected after first Hung Parliament since 1940. ALP (50.1%); L-NP (49.9%) Abbott-led L-NP wins Government after 6 years in Opposition. L-NP (53.5%); ALP (46.5%) Howard re-elected for 4th term at 2004 Election. Latham's stumbles and Tasmanian Timber Union support help Howard to win. L-NP (52.5%); ALP (47.5%) Rudd-led ALP wins Government after 11 years in Opposition. ALP (52.7%); L-NP (47.3%). Brendan Nelson is the new Oppn. Leader Beazley replaces Latham as Oppn. Leader George Bush re- elected as US President AWB Iraqi bribery scandal "Oil for Food" Malcolm Turnbull replaces Nelson as Oppn. Leader Tony Abbott replaces Turnbull as Oppn. Leader Global Financial Crisis begins as Lehman Brothers bankrupts Rudd Government stimulus packages Barack Obama elected US President Oil @ $150 a barrel RBA raises interest rates to 12 year high of 7.25% Julia Gillard proposes to introduce a price on carbon by 2012 Kevin Rudd wins ALP leadership ballot 57-45 over Julia Gillard Support for L-NP plummets after Hockey delivers his first Budget. 47.0% 53.0%
  • 25. Discover your edge Disunity is death State of the Nation 2015 Leadership issues have plagued the L-NP
  • 26. Discover your edge Government Confidence 88.5 State of the Nation 2015 More believe country going in the wrong direction
  • 27. Discover your edge 80 90 100 110 120 130 140 150 160 2013 Federal Election results in a comprehensive victory for the Coalition led by Tony Abbott Labor led by Kevin Rudd wins the 2007 Federal Election Base: Australian electors aged 18+ Source: Roy Morgan Research; weekly interviews 2010 Federal Election results in a ‘Hung Parliament’. Gillard is returned with the backing of 3 Independents & 1 Green 152.5 – Oct 2009 April 2015 88.5 Government Confidence Rating over time
  • 28. Discover your edge Leadership – a story of Disapproval State of the Nation 2015 Australians report low approval of both leaders
  • 29. Discover your edge PM Tony Abbott v Bill Shorten Base: Australian electors aged 18+ Source: Roy Morgan Research Telephone Survey, April 21-23, 2015. Better PM: 44% Abbott, 39% Shorten Job Performance Abbott: 53% Disapprove, 37% Approve Shorten: 48% Disapprove, 34% Approve
  • 30. Discover your edge Preferred Liberal Party Leader Base: Australian electors aged 18+ Source: Roy Morgan Research Telephone Survey, April 21-23, 2015. All electors: Malcolm Turnbull (38%); Julie Bishop (27%) and Tony Abbott (12%). L-NP supporters: Malcolm Turnbull (30%); Tony Abbott (25%); and Julie Bishop (25%).
  • 31. Discover your edge Preferred Liberal Leader – All electors 0 10 20 30 40 50 60 Malcolm Turnbull Julie Bishop PM Tony Abbott 38% 6% 7% 24% 12% 27% 30% 51% Joe Hockey 5% 31% 13% Base: Australian electors aged 18+ Source: Roy Morgan Research Telephone Surveys (February 2008 – April 2015)
  • 32. Discover your edge Preferred Liberal Leader – L-NP supporters 0 10 20 30 40 50 60 Malcolm Turnbull Julie Bishop PM Tony Abbott 30% 8% 5% 24% 25% 25% 49% 13% 4% Joe Hockey 6% 12% 35% Base: Australian electors aged 18+ Source: Roy Morgan Research Telephone Surveys (February 2008 – April 2015)
  • 33. Discover your edge Preferred ALP Leader – All electors 0 5 10 15 20 25 30 Jun-14 Oct-14 Jan-15 Apr-15 Tanya Plibersek Anthony Albanese Bill Shorten 23% 22% 15% 16% 21% 13% Wayne Swan 10%9% Base: Australian electors aged 18+ Source: Roy Morgan Research Telephone Surveys June 2014 – April 2015.
  • 34. Discover your edge Preferred ALP Leader – ALP supporters 0 5 10 15 20 25 30 35 40 Jun-14 Oct-14 Jan-15 Apr-15 Tanya Plibersek Anthony Albanese Bill Shorten 30% 32% 13% 16% 26% 11% Wayne Swan 9% 10% Base: Australian electors aged 18+ Source: Roy Morgan Research Telephone Surveys June 2014 – April 2015.
  • 35. Discover your edge Politicians rate poorly for honesty and ethics State of the Nation 2015 Image of professions – shows politicians below most
  • 36. Discover your edge Image of Professions - Federal Politicians cf. Nurses, Doctors, Dentists, Engineers, Police and Judges Base: Australians aged 14+ Source: Roy Morgan Research; Image of Professions Survey Nurses Doctors Engineers Dentists State Supreme Court Judges Police Federal Politicians 86% 92% 62% 84% 53% 74% 62% 71% 52% 69% 61% 69% 19% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
  • 37. Discover your edge Federal Politicians State MPs Image of Professions - Federal Pollies cf. Pollsters, Journalists, State MPs & Union Leaders Base: Australians aged 14+ Source: Roy Morgan Research; Image of Professions Survey Union Leaders TV Reporters Newspaper Journalists Public Opinion Pollsters Talk-Back Radio Announcers 34% 29% 12% 18%18% 16%16% 15% 21% 14% 9% 14% 19% 13% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  • 38. Discover your edge Image of Professions - Federal Pollies cf. Stock Brokers, Real Estate Agents, Advertisers & Car Salesmen Base: Australians aged 14+ Source: Roy Morgan Research; Image of Professions Survey Business Executives Car Salesmen Stock Brokers Real Estate Agents Advertisers Federal Politicians 22% 18% 19% 13% 19% 12% 11% 9% 9% 5%4% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  • 39. Discover your edge Economic Issues continue to worry Australians. Issues 49% say economic issues are the most important issues facing Australia – Economy, economic problems, interest rates, unemployment, the Federal Budget, cost of living, etc.
  • 40. Discover your edge Most Important Issues Facing Australia Base: Australian population aged 14+ Source: Roy Morgan Research; Nation-wide telephone poll, February 4-6, 2014 (n = 664) 0% 10% 20% 30% 40% 50% 60% Nov05 Apr-06 May-08 Nov-08 May-09 Nov-09 Feb-10 Jun-10 Sep-10 Dec-10 Feb-11 Mar-11 Jun-11 Jul-11 Oct-11 Jan-12 May-12 Jul-12 Nov-12 Jan-13 Apr-13 Jul-13 Aug-13 Oct-13 Feb-14 Jun-14 Oct-14 Jan-15 Apr-15 Environmental Issues Religion/ Immigration/ Human Rights Politics & Leadership Economic Issues Social Issues 14% 15% 9% 4% 4% 49% 6% 10% 9% 13% 3% War & Terrorism
  • 41. Discover your edge ‘Bravery’ trumps ‘Popularity’ State of the Nation 2015 The lessons of history show the way….
  • 42. Discover your edge Political/Economic Pressures State of the Nation 2015 Australian Financial Indicators: Aussie Dollar, Interest Rates, All Ordinaries
  • 43. Discover your edge Exchange Rates (1969 - 2015) - AUD cf. USD Source: Reserve Bank of Australia Parity $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 Commodities Boom
  • 44. Discover your edge RBA Interest Rates - by Prime Minister’s first, 18th and last month in office Source: Reserve Bank of Australia Monthly figures for the first month as Prime Minister; the 18th month as Prime Minister; the last month as Prime Minister 2.75% 4.50% 6.75% 7.50% 8.50% 16.73% 8.05% 4.45% 2.25% 4.25% 3.00% 5.00% 5.25% 11.07% 8.64% 18.80% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Tony Abbott Julia Gillard Kevin Rudd John Howard Paul Keating Bob Hawke Malcolm Fraser Gough Whitlam 1st Month 18th Month Last Month
  • 45. Discover your edge S&P/ASX 200 Source: Reserve Bank of Australia; value as at the last business day of each month 4,966 5,191 4,927 4,803 5,052 5,135 5,219 5,425 5,320 5,352 5,190 5,405 5,395 5,489 5,493 5,396 5,633 5,626 5,293 5,527 5,313 5,411 5,588 5,929 5,892 3,500 4,000 4,500 5,000 5,500 6,000 6,500
  • 46. Discover your edge 3.0% 4.0% 3.9% 3.3% 2.4% 2.1% 1.9% 3.0% 4.2% 4.5% 5.0% 3.7% 2.5% 1.5% 1.3% 2.1% 2.9% 3.1% 2.8% 2.7% 3.3% 3.6% 3.5% 3.1% 1.6% 1.2% 1.4% 2.2% 2.5% 2.4% 2.2% 2.7% 2.9% 3.0% 2.2% 1.6% 1.3% 0% 2% 4% 6% 8% 10% Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Annual Inflation Rate - Percentage change from previous year* *The figures provided represent the difference between the current quarterly inflation rate figure and the same quarter 12 months ago. Source: Australian Bureau of Statistics 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
  • 47. Discover your edge Consumer Confidence 111.8 State of the Nation 2015 ANZ-Roy Morgan Consumer Confidence Base: Australian population aged 14+ Source: Roy Morgan Research; April 2015
  • 48. Discover your edge Australia is nowhere near as confident as Asian neighbours Australasian Consumer Confidence ANZ Roy Morgan Consumer Confidence shows Australia behind Indonesia 154.1, China 144.5 and even our neighbours in New Zealand 124.6 Source: Roy Morgan Research; March 2015
  • 49. Discover your edge ANZ-Roy Morgan Consumer Confidence - Monthly Asia-Pacific Consumer Confidence Base: Asia-Pacific countries; March 2015 Base: Australians aged 14+ ; April 2015 Source: Roy Morgan Research 154.1 144.5 124.6 108.8 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 Indonesia China New Zealand Australia
  • 50. Discover your edge Base: Australian population aged 14+ Source: Roy Morgan Research; Monthly figures for the first month as Prime Minister; the 18th month as Prime Minister; the last month as Prime Minister 124.1 123.6 126.8 123.7 83.0 97.4 103.0 119.2 111.8 111.0 113.5 112.4 96.2 118.2 103.8 95.6 80 90 100 110 120 130 140 Tony Abbott Julia Gillard Kevin Rudd John Howard Paul Keating Bob Hawke Malcolm Fraser Gough Whitlam 1st Month 18th Month Last Month ANZ-Roy Morgan Consumer Confidence - by Prime Minister’s first, 18th and last month in office
  • 51. Discover your edge ANZ-Roy Morgan Consumer Confidence (Monthly) - by State Base: Australians aged 14+ Source: Roy Morgan Research; March 2015 113.0 112.7 112.1 111.4 108.8 105.5 March 2015 Australia 111.3 100 102 104 106 108 110 112 114 South Australia Victoria Western Australia New South Wales Queensland Tasmania
  • 52. Discover your edge ANZ-Roy Morgan Consumer Confidence vs All Ords 1986 - 2015 Source: Reserve Bank of Australia; value as at the last business day of each month Base: Australian population aged 14+ Source: Roy Morgan Research; Monthly data 0 20 40 60 80 100 120 140 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 All Ordinaries Share Index (LHS) ANZ-Roy Morgan Consumer Confidence (RHS)
  • 53. Discover your edge ANZ-Roy Morgan Consumer Confidence vs All Ords 2007 - 2015 Source: Reserve Bank of Australia; value as at the last business day of each month Base: Australian population aged 14+ Source: Roy Morgan Research; Monthly data 80 90 100 110 120 130 140 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 All Ordinaries Share Index (LHS) ANZ-Roy Morgan Consumer Confidence (RHS)
  • 54. Discover your edge ANZ-Roy Morgan Consumer Confidence vs All Ords 2013 - 2015 Source: Reserve Bank of Australia; value as at the last business day of each month Base: Australian population aged 14+ Source: Roy Morgan Research; Monthly data 100 105 110 115 120 125 5,000.0 5,100.0 5,200.0 5,300.0 5,400.0 5,500.0 5,600.0 5,700.0 5,800.0 5,900.0 6,000.0 ANZ-Roy Morgan Consumer Confidence (RHS) All Ordinaries Share Index (LHS)
  • 55. Discover your edge Business Confidence 112.4 State of the Nation 2015 Roy Morgan Business Confidence Base: Australian Businesses Source: Roy Morgan Research; March 2015
  • 56. Discover your edge Business Confidence Base: Australian Businesses Source: Roy Morgan Research; Monthly data 131.5 99.8 118.7 105.4 123.8 136.3 80 90 100 110 120 130 140 112.4
  • 57. Discover your edge Roy Morgan Business Confidence (March quarter) - by State Note: ACT and NT have been excluded from chart due to low sample size. Base: Australian Businesses Source: Roy Morgan Research; January 2015 to March 2015 117.9 115.5 112.4 108.4 107.4 106.0 100 105 110 115 120 Tasmania Victoria New South Wales Queensland South Australia Western Australia Australian Business Confidence 111.0
  • 58. Discover your edge Roy Morgan Business Confidence - by Business Size Base: Australian Businesses Source: Roy Morgan Research; 6 month moving averages 112.7 111.3 124.6 120.5 80 90 100 110 120 130 140 150 160 Micro Medium/Large All Businesses Small
  • 59. Discover your edge Unemployment at 10.8% is far too high State of the Nation 2015 2.3 million Australians unemployed or under-employed. Young people hit the hardest. Source: Roy Morgan Research; March 2015
  • 60. Discover your edge Level of Workforce Unemployment Source: Roy Morgan Research; Monthly data Source: Australian Bureau of Statistics; Monthly data 9.4% 6.9% 7.3% 0% 2% 4% 6% 8% 10% 12% 14% %ofworkforce ABS Seasonally Adjusted 6.1% ABS Original (Trend) 6.2% Roy Morgan Research 10.8%
  • 61. Discover your edge Roy Morgan Research Australian Bureau of Statistics Base: Australians aged 14+ Source: Roy Morgan Research; Telephone Polls – June 2013, June 2014 & April 2015. 58% 55% 60% 21% 33% 29% 0% 10% 20% 30% 40% 50% 60% 70% June 2013 June 2014 April 2015 Unemployment – 60% of Australians now believe Roy Morgan 10.8% is closer to reality
  • 62. Discover your edge Unemployment by Age Base: Australians in the workforce aged 14+ Source: Roy Morgan Research; 6 month moving average 7.9% 14.5% 5.7% 4.9% 3.3% 0% 5% 10% 15% 20% %workforceunemployedineachagegroup 14-29 16.4% 45-59 7.2% 60 and over 7.6% Australians 14+ 30-44 10.3%8.6%
  • 63. Discover your edge Unemployment & Under-Employment Australia vs. the United States of America Source: Roy Morgan Research; Monthly data Source: Australian Bureau of Statistics; Monthly data Source: Bureau of Labor Statistics; Monthly data 15.9% 18.5% 5.0% 5.5% 8.4% 11.0% 5.1% 6.1% 0% 5% 10% 15% 20% 25% Australia: Roy Morgan Unemployment & Under-employment USA: U6 Unemployment USA: U3 Unemployment Australia: ABS Unemployment
  • 64. Discover your edge US Unemployment – Policy Makers Aware Source: The Wall Street Journal
  • 65. Discover your edge Roy Morgan Unemployment & Under-Employment - by Prime Minister’s first, 18th and last month in office *Total Australian Unemployment & Under-employment rose above 2 million Australians in December 2011 – it has stayed above 2 million ever since – 40 straight months. Base: Australians in the workforce aged 14+ Source: Roy Morgan Research; Monthly figures for the first month; the 18th month; the last month as Prime Minister 1st Month 18th Month Change Last Month PM Tony Abbott 18.3% 18.5% +0.2 pts (incumbent) PM Julia Gillard 12.4% 16.8% +4.4 pts 18.9% PM Kevin Rudd 11.8% 16.6% +4.8 pts 12.4% 1st Month 18th Month Change Last Month PM Tony Abbott 2.286 million 2.344 million +58,000 (incumbent) PM Julia Gillard 1.435 million 2.012 million* +577,000 2.346 million PM Kevin Rudd 1.263 million 1.829 million +566,000 1.435 million
  • 66. Discover your edge Unemployment’s economic consequences State of the Nation 2015
  • 67. Discover your edge International Context State of the Nation 2015 Global unrest; Asian engagement; trade deals
  • 68. Discover your edgeBase: Goods and services exported during the 2013-2014 financial year. Source: Department of Foreign Affairs and Trade Rank Country $AUD Billions % Share of Total 1. China $159.6 23.9% 2. Japan $72.2 10.8% 3. United States $58.2 8.7% 4. South Korea $34.6 5.2% 5. Singapore $29.5 4.4% 6. New Zealand $22.7 3.4% 7. United Kingdom $20.3 3.0% 8. Malaysia $19.9 3.0% 9. Thailand $18.8 2.8% 10. Germany $16.8 2.5% Australia’s Biggest Trading Partners (2013-14)
  • 69. Discover your edgeSource: Australian Bureau of Statistics -5% 0% 5% 10% 15% 20% China GDP growth Australian GDP growth Australian average GDP growth (1980-2014) - 3.2% China average GDP growth (1980-2014) - 9.7% China vs. Australia - GDP Growth 1980 - 2015
  • 70. Discover your edge Unemployment and Trade = tension State of the Nation 2015 Winners and Losers
  • 71. Discover your edge Terrorism and War State of the Nation 2015 Increased concern means terrorism and war is as big a concern globally as the economy
  • 72. Discover your edge Indonesian – Australian relations State of the Nation 2015 The biggest sleeper of all
  • 73. Discover your edge Asylum Seekers – a sleeper State of the Nation 2015 The complex set of issues surrounding asylum seeker has not been resolved
  • 74. Discover your edge In Summary State of the Nation 2015
  • 75. Discover your edge Both Consumer Confidence & Business Confidence are down from the 2013 Federal Election. In Summary: State of the Nation 2015
  • 76. Discover your edge Economic Issues still dominate for Australians. In Summary: State of the Nation 2015
  • 77. Discover your edge The end of the ‘Commodities Boom’ is an economic ‘shock’ but provides opportunities. In Summary: State of the Nation 2015
  • 78. Discover your edge Despite falling behind, the Abbott Government has every chance to win the next Election. In Summary: State of the Nation 2015
  • 79. Discover your edge Implementing necessary but unpopular reforms can often be the best way to regain support. In Summary: State of the Nation 2015
  • 80. Discover your edge Unemployment and Under-employment remain a huge problem in Australia – now well above USA. In Summary: Australia’s real level of unemployment (10.8% - 1.37 million) and under-employment (7.7% - 970,000) is far higher than the official ABS unemployment estimate (6.1% - 760,000). More than 2.34 million Australians are looking for work or looking for more work. Youth unemployment is particularly bad (16.4%).
  • 81. Discover your edge A prediction for the next election: In Summary: State of the Nation 2015
  • 82. Discover your edge It’s going to be an interesting 18 months… State of the Nation 2015 The Key Areas of Change
  • 84. Discover your edge Real Unemployment – too high Interest Rates – too high Iron Ore Prices – too low The Chinese Economy – in decline!
  • 85. Discover your edge Day of reckoning: why our economy needs a recession STIRLING LARKIN, APRIL 25, 2015 Wrong, Federal Government needs to tackle the issues now: • Increase workplace productivity – (Abbott should step down or break naive promise of no IR reform) • Eliminate the cash economy • Tackle corruption at every level of the economy – corporate, unions & government. • Real competition in the private sector • Open Government tenders – too many ‘tenders’ now awarded to ‘mates’ • Accurate Government data – increase government efficiency by tendering services. eg. ABS surveys