"This would be consistent with our fiscal assumptions when we last affirmed Australia’s ‘AAA’ rating in April 2019," Mr Zook said.

"But a challenging economic environment poses risks to this outlook," he said.

More economic uncertainties

"The economy is slowing and the unemployment rate has inched up, which could weigh on fiscal revenues. A sharper economic slowdown could also lead to pressures for greater fiscal stimulus."

The Reserve Bank of Australia downgraded its economic growth forecast last week to about 2.75 per cent in 2019, from 3 per cent.

PWC chief economist Jeremy Thorpe was sceptical about whether the Coalition could reduce net debt to zero over the next decade, suggesting that either revenue measures would have to be introduced or spending cuts found to meet such a target.

He also said the Coalition's win did not mean an instant fillip to the economy.

"There is just so much uncertainty in the economy so this win only solves on bit of that. It won't solve China, it won't solve Trump and trade.


"And I don't think it will change anything the RBA was going to do, whatever it was they were going to do."

Bounce on the way

Some economists however expect there to be a bounce in both equities and property markets which could allay fears of slowing consumption growth - which the RBA has also revised down.

"We expect today’s unexpected victory for the incumbent government to be a moderate positive shock to sentiment in the corporate sector and a more meaningful one in the housing sector," Goldman Sachs' Andrew Boak said.

"This is because – given the consistency of the polls for several years – we believe investors have for some time been pricing in potential longer-run headwinds linked to the ALP’s proposed reforms."

AMP Capital's Shane Oliver noted that after nine out of the 13 elections since 1983, shares were up three months later with an average gain of 4.8 per cent.

"With the return of the Coalition with its more pro-business policies and uncertainty now removed around changes to excess franking credits, changes to negative gearing and capital gains tax adversely affecting the property market and increased industrial relations regulation, its possible we will see a bit of a short-term bounce in the share market."


Four key challenges

He warned though the new government would now face several challenges including managing the housing downturn, improving wage growth which would require reducing underemployment, addressing the perceptions of unfairness that have grown since the 2014 budget, and solving the climate change versus high energy price puzzle.

Commsec's Craig James said the "removal of election uncertainty will allow Australians to get back to business" and they could now look forward to some stimulus.

"While the stimulus from the Coalition is smaller than that proposed by Labor, it will prove important and beneficial given the lack of economic momentum at present," Mr James said.

Mr Frydenberg said while there may be some headwinds, the economy can expect faster-flowing economic stimulus from tax rebates.

Fiscal boost soon

"We will see up to $1080 into the pockets of Australians earning up to $126,000 in just a matter of weeks. The Labor Party has already said they will support that legislation, so it will have bipartisan support, so let's get this legislation passed so that the Australian people get their tax cuts.''

The Commonwealth Bank of Australia has suggested that the RBA could hold off cutting interest rates because of $7.5 billion in rebates flowing through after July 1, equivalent to about 0.6 per cent of disposable income.

Opposition leader front-runner Anthony Albanese said the risks for the economy were rising.

"The global economy continues to falter, causing more risk for Australian industry and jobs."

"The low-wage economy, wages are not keeping up with inflation means, that is entrenching generational disadvantage."