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Negative gearing

Marginal seats

Superannuation

Gonski



Backpacker tax

Penalty rates

Preference deals

Refoulement

Asylum seekers

MYEFO

PEFO

Medicare

Concessional loans

Company tax cuts

Jobs and growth

Double dissolution election

ABCC

Forward estimates

Deficits

Family tax benefits

NBN

Same-sex marriage

Hung Parliament

Negative gearing allows property investors who make a loss on running their property to reduce the tax they pay on other income.The Coalition parties have promised not to change the current negative gearing laws, which apply to established and new houses or apartments.Labor wants to abolish negative gearing for established houses from next year, which it claims will make housing more affordable.The Coalition has criticised Labor's plan, saying it would discourage investment, raise rents and reduce home values.But Labor says its plan would help put first home buyers on a level playing field with investors.Australia has more than two million property investors, and more than 60 per cent made a loss in the 2013-14 financial year.The average loss is about $10,000.If someone earned a wage of $80,000, for example, negative gearing would cut their taxable income to $70,000.A seat is described as "marginal" when the winning candidate from the last election won the seat by less than 6 per cent.That means the candidate received less than 56 per cent of the two candidate preferred vote.If a candidate wins 56-60 per cent, the seat is classified as "fairly safe", and over 60 per cent is considered "safe".For a seat to change hands, a swing of anything more than an absolute majority (50 per cent + 1 vote) is required.For example, if a member holds a seat with 56 per cent of the vote, a swing greater than 6 per cent is required for the seat to change hands.Superannuation concessions are tax breaks designed to encourage people to put more money into superannuation, in theory saving the government money down the track by reducing the burden these people will place on the public purse when they retire.Currently, superannuation is taxed at 15 per cent, with super earnings not taxed at all once you hit 60 years of age. Employers are required to put a minimum of 9.5 per cent of an employee's income into a super fund.The superannuation concession allows people to voluntarily contribute more to their superannuation and still be taxed at the rate of 15 per cent (or 30 per cent if you are really well off), well below the majority of tax rates.In the budget, the Government announced a lowering of the income threshold at which the 30 per cent (rather than 15 per cent) tax rate kicks in on superannuation contributions from $300,000 to $250,000, which matches one of Labor's policy commitments.They also announced the lowering of the annual cap on contributions entitled to the concessional tax rates to $25,000, from the current $30,000 for under-50s and $35,000 for those aged 50-plus.The two moves combined are expected to save a further $2.5 billion over three years.Labor has promised it would raise $14 billion in a decade by putting a 15 per cent tax on super earnings more than $75,000 a year.The concessions have been criticised for disproportionately benefiting the wealthy, who get a much bigger discount on their normal income tax rates than those in lower tax brackets.With many wealthy people likely to be ineligible for the pension on reaching retirement anyway, critics argue that the concessions cost the government far more in lost revenue than it would cost to support wealthy individuals with the aged pension.Superannuation concessions cost the federal budget $30 billion in 2015–16.The Gonski needs-based funding model was implemented under former prime minister Julia Gillard in 2014 following the independent Gonski review.Under the model every student receives a base amount of funding with extra allocated for students with special needs or from disadvantaged backgrounds.The Government has not matched the funding levels required by Gonski but has agreed to pump an extra $1.2 billion into schools, giving the states funding certainty until 2020.The pledge partially reverses the 10-year, $30 billion cut to education funding contained in the Abbott government's 2014 budget.Labor has promised to fully fund the last two years of Gonski at a cost of $4.5 billion.The announcement was unveiled as part of a decade-long education plan from Labor worth $37.3 billion.Currently, backpackers who come to Australia for work do not pay any tax until they earn more than $18,200.In the 2015 budget, there was a proposal to tax backpackers on every dollar they earn from July 1, 2016.By imposing this 32.5 per cent tax, the Government would earn $540 million over three years.The Government has now delayed the introduction of the tax by six months until a government review on working holiday visas is complete.That has angered farm groups, who argue they will be in the middle of harvest when any new taxes take effect.Bill Shorten says it is cynical of the Government to delay the matter until after the election but Labor has not committed to scrapping the tax either.The Greens want it dumped altogether.Politicians and the farm sector agree that backpackers should pay some level of tax, but there is widespread concern that the proposed rate is too high.The agriculture and tourism sectors say backpackers would bypass Australia and choose countries like New Zealand or Canada if the tax was implemented.Backpackers make up 25 per cent of Australia's agriculture workforce.In the Northern Territory, they make up 85 per cent.This election campaign is being fought under the shadow of a looming decision from the Fair Work Commission (FWC) which is deciding whether to cut Sunday penalty rates to the same level as Saturday rates.If cut, around two million people who work in the retail and hospitality industries would be affected.The Coalition has vowed to adhere to any ruling by the FWC that cuts Sunday penalty rates.Labor does not want penalty rates cut but has ruled out passing legislation which would guarantee Sunday penalty rates if they win the election.But if elected, Mr Shorten said a Labor government will make another submission to the commission arguing against the cuts.The Australian Council of Trade Unions and the Greens want Labor to protect the Sunday penalties.The FWC will hand down their decision after the July 2 election.Australia has a preferential voting system, which means if you vote for a candidate who does not get elected your vote can go to the next preferred party.Under new Senate voting laws passed in March, voters can number 1 to 6 on ballot papers above the line in order of their preference, or number individual candidates below the line.The legislation's aim is to stop the complex preference-swapping deals that led to a number of senators being elected with only a fraction of the popular vote.That is because instead of just voting for a preferred party above the line, often without knowing where their preferences have been directed, voters will now have to specify their choices.The Liberal Party has not ruled out preferencing the Greens ahead of Labor in marginal Victorian seats.If the July 2 election delivers another hung parliament, the Greens say they would prefer a Labor-Greens deal.But both the Coalition and Labor have ruled out forming a governing Coalition with the Greens, raising the prospect of a second election if the first delivers a hung parliament.Refoulement means the expulsion of persons who have the right to be recognised as refugees.The United Nations Convention relating to the status of refugees outlines countries should not return a refugee to the place from which they fled because of their race, religion, nationality, membership of a particular social group or political opinion.This is regarded as the principle of non-refoulement.The terms refugee and asylum seeker are often confused and wrongly used in place of the other.An asylum seeker is someone who is seeking international protection, but has not yet had their claim for refugee status determined.A refugee is someone who has been found to be requiring protection.The UN Convention Relating to the Status of Refugees defines it as "... owing to well‐founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, is unwilling to avail himself of the protection of that country; or who, not having a nationality and being outside the country of his former habitual residence as a result of such events, is unable or, owing to such fear, is unwilling to return to it."The Mid-Year Economic and Fiscal Outlook is an update of the budget position around six months after the last budget was delivered.The purpose of the Pre-election Economic and Fiscal Outlook is to provide an update on the budget position in the lead up to the election, taking into account as many of the government decisions made before the election writs were issued.It also outlines other factors which may be contributing to the economic situation the country finds itself in during the election period.In this year's budget, the Coalition announced it would continue the indexation freeze for all Medicare Benefit Schedule (MBS) fees until 2020.While not a direct cut to GPs' income, over time GPs would earn relatively less while their costs would increase.The freeze on rebates was initially put in place for four years in 2014 after the unpopular $7.00 GP co-payment was dropped.The Opposition has criticised the rebate freeze, calling it a GP tax by stealth.Labor plans to restore indexation of the MBS from January 1, 2017 which will cost $2.4 billion by 2019-20 and $12.2 billion over a decade.There's also been a lot of talk about privatising Medicare, with Labor accusing the Coalition of having "secret" plans to outsource the payments system.Despite the Coalition considering privatising a swath of Government payments, including Medicare, Malcolm Turnbull has abandoned such plans and said "every element" of Medicare would remain in Government hands.The plan to outsource the system was reportedly well advanced with several companies putting their hands up to take it over.Concessional loans are provided on terms substantially more generous than market loans.Below-interest rates or grace periods are often features of concessional loans.During week three of the election campaign, Deputy Prime Minister Barnaby Joyce announced a $555-million package in concessional loans for dairy farmers affected by recent milk price cuts.In 2014, the Coalition announced a drought concessional loan scheme which provides up to $150 million to drought-affected farm businesses.Many farmers seeking drought loans have slammed the scheme for delayed access to funds and poor management.The Coalition is proposing to cut the company tax rate to 25 per cent for all firms in the next 10 years.The changes will be phased in over time, with an incremental increase in the number of firms paying the small business tax rate.Eventually all firms, regardless of size, would pay 27.5 per cent, before the rate falls to 25 per cent from 2026-27.The Federal Treasury predicts the measures would cost the budget more than $48 billion over a decade, while the Parliamentary Budget Office has estimated more than $51 billion.The main argument for the proposal is that it would attract more foreign investment, producing a bigger and more productive economy.Risks of the proposal include companies not increasing investment or taking a large profit instead of increasing employment or wages.Labor is opposed to the proposal, saying Australia cannot afford the cuts, despite the Gillard government arguing for a cut five years ago.The phrase "jobs and growth" has been widely recognised as the Coalition's catch-cry this election through the party's consistent repetition of the three-word slogan when selling their policies.The mantra has been used to focus attention on the Coalition's plans to strengthen the economy including; corporate tax cuts, the innovation and science agenda and the Youth Employment Package.Earlier this year, the Coalition rolled out the slogan "continuity and change" to try and graft their innovation policy to their traditional credentials in the economy.However, the phrase was quickly killed off after the discovery that it was also a satirical line from the American sitcom, Veep.In 2013, the Coalition chose the slogan "Choose Real Change. A Stronger Australia. A Better Future" to take to the election.A double dissolution election allows federal governments to resolve a legislative deadlock in Parliament.If the House of Representatives passes a bill twice and the Senate fails to pass that bill twice, the Prime Minister may approach the Governor-General to seek the dissolution of Parliament.If the Governor-General dissolves both houses, this creates a simultaneous election for all members of both the House of Representatives and the Senate.The big difference between double dissolutions and normal elections is that more politicians need to be elected.Normally, half of the Senators are up for re-election (because they have six-year terms, and elections normally happen every three years).In this year's double dissolution election, all Senate seats are up for grabs.The public service goes into caretaker mode once Parliament is officially dissolved, which happened on May 9.Between the dissolution and the election the Prime Minister cannot make any major decisions without consulting the Opposition.This double dissolution election was triggered by the Senate blocking two parcels of legislation: the ABCC bills and the Registered Organisations Bill.The Australian Building and Construction Commission was set up the Howard government in 2005 as an independent watchdog to monitor the construction industry.It came into being after the Royal Commission into the Building and Construction Industry, commonly known as the Cole royal commission.In 2012, Labor prime minister Julia Gillard replaced the ABCC with a new regulator — the Fair Work Building and Construction Commission — which provided greater safeguards for workers.In 2014, the Abbott government introduced a bill to the Senate to bring back the ABCC.However, the bill has been blocked twice by the Senate which eventually led to Malcolm Turnbull asking the Governor-General to issue writs for a double dissolution election.One of the Coalition's election promises is to restore the ABCC, arguing it would crack down on lawlessness in the building industry.Labor and unions are staunchly opposed to the ABCC, saying its coercive powers give construction workers fewer rights than accused criminals.The forward estimates are a series of projections, released alongside the budget, which predict revenue and expenses for the next four financial years.As they rely on assumptions about revenue and indicators, they are often subject to change — as the mining boom unfolded, the estimates often undervalued the amount of revenue, and since commodity prices peaked they have had to be revised downwards.But the estimates are seen as a useful way of showing the government's longer-term plans for spending.Politicians of all stripes are fond of comparing the budget to a family's finances, but this often leads to confusion.When a politician says they are balancing the books and returning the budget to surplus, it gives the impression that they are clearing the government's debt.The reality is that the deficit is just the amount of money the government spends beyond what it receives in a financial year.Just because you return the budget to surplus does not mean that the debt incurred by the previous deficits disappears.The Family Tax Benefit (FTB) is a means-tested payment that helps eligible families with the cost of raising children.FTB Part A is for families with dependent children between the ages of 0 and 19. The payment is worth a maximum of $234 per child per fortnight but depends on income and the child's age.FTB Part B is for single-parent families and families with one income of $100,000 a year or less. It is worth a maximum of $153 per family a fortnight but depends on the age of the youngest child and the income of any secondary income earner.Legislation has passed which means from July 1, 2016 FTB Part B will be scrapped for couples when their youngest child turns 13. As for FTB Part A, the Coalition has promised to increase the maximum rate payment by $10 a fortnight if Parliament passes legislation to scrap the annual supplements, which are top-up payments sent out at the end of every financial year, once parents have lodged tax returns.However, Labor opposes the plan to scrap the supplements and will instead reduce the FTB Part A supplement by 50 per cent for families earning more than $100,000 per year. It will also maintain the freeze on thresholds until 2020.The NBN is designed to provide access to a minimum level of broadband services around Australia.Former Labor leader Kevin Rudd promised a national network before the 2007 election. Two years later it became a $43 billion government-owned business (NBN Co) that pledged to deliver broadband to every home via fibre cables.Before the 2013 election the Coalition promised a "faster, cheaper" model that would see the NBN rolled out largely to street "nodes" (instead of directly to homes), with the final connection to residences made through the existing copper network.Over the course of the Abbott and Turnbull governments, the Coalition's NBN policy has shifted from a Fibre to the Node (FTTN) focus to a multi-technology mix (MTM), which includes some fibre to the premises (FTTP) as well as a satellite network, and the copper network.The Coalition claimed the new NBN would cost $29.5 billion, as opposed to Labor's $44.9 billion, but the scheme has blown out in cost to $56 billion and is not expected to be finished until 2020, more than four years behind schedule. Labor has vowed to connect two million extra premises to FTTP technology and phase out the Coalition's FTTN technology.People already on the map to receive the FTTN option will still get it, but those customers without an existing contract will be able to get fibre to their houses and businesses.The Opposition said the proportion of home connections would increase from about 20 per cent under the Coalition to 39 per cent under the changes.The plan is said to cost $57 billion and be completed by mid-2022.Currently, about 2.6 million premises are able to access the NBN and about one million are connected.The question of whether or not to legalise same-sex marriage in Australia is a key election issue for many voters.Vote Compass data reveals a majority of Australians back same-sex marriage, but one in four Australians believe marriage should only be between a man and a woman.The Coalition has promised, if re-elected, to hold a plebiscite on same-sex marriage sometime after the election.Malcolm Turnbull says he expects the push for a plebiscite to be passed by the Senate.Whereas Labor leader Bill Shorten has vowed to introduce a bill to legislate same-sex marriage within 100 days of a new Labor government.Mr Shorten says he is opposed to a plebiscite as he believes it would provide a platform for "hate and homophobia".Mr Turnbull has rebutted this argument by saying "Australians are better than that; I believe we can have a discussion".The Australian Electoral Commission has estimated the cost of a plebiscite at $160 million and says if it was held like a referendum, with the 'Yes' and 'No' cases mailed to households, it would need 29 weeks to prepare.Both the Greens and the Nick Xenophon Team want same-sex marriage legalised but are opposed to a plebiscite.A hung parliament results when no party has more than half the MPs in the House of Representatives, which means no party can pass laws without gaining support from other parties or independent members of the House.There are 150 members of the House of Representatives, so to have an outright majority one of the parties needs to hold 76 seats - 75 seats on the floor plus the unused vote of the Speaker.With 89 notional seats, the Coalition can lose up to 13 seats this election on a uniform swing of 3.3 per cent and still hold majority government.With 57 seats leading into the election, Labor needs 19 seats on a uniform swing of 4.0 per cent to form majority government.A uniform swing between these two values could produce a hung parliament where the formation of government would fall to negotiation with the parliamentary cross bench.Further victories for the Greens, or success by the Nick Xenophon Team in South Australia, would increase the size of the cross bench and make it harder for either side of politics to achieve a majority at a close election.