UK election 2017: What it means for Australia

The world, including Australia, is watching as the UK elections 2017 takes place. The final vote is expected to have huge ramifications for the country. It could affect Aussies’ work, personal finances, business opportunities, business economy, political landscape and even travel plans.

Prime Minister Theresa May wanted a snap election with hopes of a strong win for the Conservatives. That would mean a mandate for a “hard Brexit.”

But a win for Labour, even a less than decisive win for the Tories, could mean all the difference for the UK, the European Union (EU) and Down Under. The initial signal of UK election’s ramifications will be felt in the markets.

A Conservative majority means the pound will bounce back. It would also result to confidence in the international stock market. But if the Tories squeak through less than 50 seats, that could mean uncertainty and instability. If May’s major rival, Jeremy Corbyn, does well, Australians may be forced to accept that the world is moving away from the “neo-liberal” free trade ideas.

Business, jobs, education and travel

Britain, being a member of EU and single market, makes travelling easer for Australians. Multiple visas are not required to travel to Europe.

The “hard Brexit” will be a tough one for Australia, though. Simon Tormey, head of the University of Sydney’s School of Social and Political Sciences, stressed that Aussies do not want a Brexit. Several Australian businesses have headquarters in the UK, and those businesses could be affected if it is no longer a central springboard to the EU.

University of Melbourne’s Andrew Walter told news.com.au that an unconvincing result for the Tories will result to a “fraught two years” for the British government. “There will be no unilateral agreements with Australia and others until Brexit is achieved,” he added.

Currently, there are several Aussie students at UK universities who benefit from the liberal work visa arrangements after graduation. A Conservative win is anticipated to result to a clamp down on the relative freedom of movement for Australia and other countries.

Furthermore, sectors will be concerned over the loss of the single passport. The City of London will likely push for a better deal and avoid a hard Brexit, access to key staff as well as open labour movement.

The UK election might affect Australia’s own politics, too. The poll hints that Aussie Prime Minister Malcolm Turnbull’s slim majority is reflected in May’s disappointment.

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