24 May 2010

Close result expected in Australian election

10:28 am on 24 May 2010

A close result is expected in the forthcoming federal election in Australia.

A Radio New Zealand business correspondent in Sydney says it looked certain a few months ago that the Rudd Labor government would be returned for a second term at a federal election, which is expected around late August.

But a recent narrowing in the opinion polls suggests the election will be much closer, with the conservative coalition led by Tony Abbott, now considered a real chance of an upset.

Radio New Zealand correspondent says that means a lot of policy is up in the air for business. The government's emissions trading scheme is on the backburner, for instance.

And the opposition is promising to scrap the government's $A18 billion investment in a new national broadband network.

There is also opposition to a proposal by the federal government of a 40% tax on the profits of resource companies.