Market analysis: Australia's re-elected Labor government faces tough budget tasks.

As the Australian Labor Party celebrates its historic election victory, economists are expected to soon point out the country's poor federal budget situation. The Labor Party has promised to continue providing cost-of-living subsidies, cut income taxes, and increase childcare and healthcare spending. The party also hopes to reduce student debt and support first-time home buyers. Abhijit Surya, a economist at Capital Economics, believes that despite the Labor Party viewing its overwhelming victory as a mandate to expand government size, the risks tend to lean towards larger budget deficits in the future. He added that this is especially true given the resistance to growth this year due to the US-China trade war.