The prospect of a hung parliament and a Senate where a minor party holds the balance of power in its own right, is a worrying outcome for business, says Australian Industry Group Chief Executive Heather Ridout.
“It will potentially lead to instability, uncertainty and short-termism in policy development, all of which poses risks and challenges for the economy, Ms Ridout says.
"Should they need to be called upon, we would urge the independents to commit above all to supporting stable government and we are encouraged by their early reassurances to this effect.
"Beyond that, business and industry is looking for a government committed to dealing with the hard issues and dealing with them competently.”
It is vital for Australian business to have a Government that takes “a positive and long term approach” to lifting productivity and securing long-term prosperity.
"Australia is one of the few developed countries in the world, which, while facing challenges, also has a range of positive choices and growth opportunities available to it, says Ms Ridout.
“Our essentially sound fiscal position, strong terms of trade and proximity to Asia, the emerging centre of world economic growth, means that we can approach the future with confidence.
"Ai Group will work constructively with whatever government is formed."