KEY POINTS:
Australian business is now assessing the reality of a Labor Government in Canberra for the first time in more than a decade, installed as tremors shake the global economy.
The nation's boardrooms have already factored in at least one more interest rate rise in the near future, but as an inevitable sequence of the six successive rises that hit the previous Coalition administration.
While there is some trepidation at Prime Minister-elect Kevin Rudd's intention to reform predecessor John Howard's WorkChoices industrial laws, there is considerable confidence that Labor is not about to launch a new round of economic vandalism.
There is even relief that Howard's reluctance to address some of the emerging and pressing long-term issues facing Australia has been replaced by a recognition that critical areas such as federal-state relations, national infrastructure and climate change are central to Australia's future well-being.
Rudd and Wayne Swan, who will become Treasurer when the new Cabinet is sworn in at the end of the week, dedicated large amounts of time and energy assuring business of their economic agenda before the election.
Both endlessly repeated the mantra of economic conservatism, balanced budgets, low inflation, a tight grip on unions both in the workplace and within the Government and strategies to reduce bureaucratic and other pressures on business.
There is hope that relations between federal and state Governments will improve and make further reform possible, given that there is no longer a Coalition administration in power anywhere in Australia.
While the business of managing relations between the various Governments is never easy, conflicts between various Labor state administrations is evidence of this, there is the prospect of at least some cooperation.
The Business Council of Australia and the Chamber of Commerce and Industry, supported by a number of state-based organisations, have expressed their intention to work closely with Labor, and have approved Rudd's list of economic priorities.
Small business, especially, will be guaranteed protections, unions will be kept at heel through tight restrictions on strikes, bargaining, and rights of workplace entry, and unfair dismissal protections while restored will not carry the oppressive weight of pre-WorkChoices legislation.
There is still some lingering fear that once in power Labor factionalism and union power will start flexing its muscles, but the scale of his victory gives Rudd immense authority at least for the moment and he will name a Cabinet entirely of his choice.
His economic priorities include the confinement of budget surpluses to 1 per cent of gross domestic product, the introduction of tax cuts totalling A$31 billion over three years, and continued low-inflation growth.
The housing sector will gain from tax incentives for developers building low-income rental properties, a A$500 million fund to help local government to prune back changes on new houses, and incentives to help first-home buyers save for their deposits.
Other specific sectors will benefit, especially water and renewable energy, and communications, with plans for a new high-speed broadband network connected to schools.
Education will gain from new secondary trade training centres and a doubling in university scholarships.
