Electoral and partisan influences on Australian fiscal policy from Menzies to Hawke

I examine the controversial questions of whether or not partisanship and electoral motives shape the fiscal policies of Australian governments. I also extend the partisan model of policy choice for the Australian case. Specifically, using time‐series data for the financial years 1962–63 through 1989–90,1 explore partisan and electoral influences on the overall fiscal stance and the personal income transfer payments of the Commonwealth government Results indicate that, net of the influences of inertia in the policy process and of variations in economic forces, partisanship and elections play significant roles in determining both overall fiscal policy and income transfer outlays. Analyses reveal that fiscal policies become more expansionary across the electoral cycle while Labor and coalition governments have large but diminishing partisan effects cm policy over their terms in office.