2025 Federal election: all stop for the caretaker?

There’s a Federal election coming in the first half of 2025. What does the election period mean for business, Corporate Commonwealth entities and Commonwealth companies?

Introduction

After an election is called and the Governor-General dissolves Parliament, the incumbent Government takes on a caretaker role and operates according to conventions. During this caretaker period, most important decisions are deferred. The caretaker period will have a substantial impact on government operations, particularly where significant decisions are involved.

In this alert, we explain what happens during the caretaker period and the implications it has for business, corporate Commonwealth entities and Commonwealth companies.  

Key takeaways

• The latest date for a House of Representatives and a half-Senate election is 17 May 2025
• During the caretaker period, the incumbent government doesn’t make major policy decisions that are likely to commit an incoming government and restrict its actions
• You should plan for delays in government making significant decisions, entering major contracts and making down-selections on significant procurements
• The work of Commonwealth companies and corporate Commonwealth entities (CCEs) continues; however, they will generally act consistently with the caretaker conventions unless doing so would conflict with their legal obligations or there are compelling organisational requirements
• Routine and administrative operations of departments, agencies and Ministers continue as usual.

How the caretaker period affects business

During the caretaker period, the incumbent government continues, but by convention it does not take important decisions, including: 

• major decisions that are likely to commit an incoming government
• entering into major contracts or undertakings
• making significant appointments.

During the caretaker period, government agencies continue to perform their normal administrative operations. So, for most things, it’s business as usual. But business should generally expect slower response times during the caretaker period. Government and the public service will tend to park anything that’s significant or politically contentious. 

The Government only makes important decisions if the need for the decision during the caretaker period is unavoidable. Any such decisions are made following consultation with the Opposition. This all takes extra time. 

This means that, if you are in negotiations on a significant contract with the Government, the negotiations will not be finalised during the caretaker period. In some cases, negotiations may stop altogether: you’ll need to wait until after the swearing in of a new Minister. Even if negotiations have concluded on a significant transaction, final approvals and signing the contract won’t happen during the caretaker period.

Pausing significant procurements is usual. Government doesn’t start negotiations on significant deals during a caretaker period.

Routine operations continue but significant decisions like foreign investment decisions by the Treasurer do not (Read more about foreign investment decisions and the caretaker period here.)

Non-controversial and routine procurement and contracting activities continue.

Bottom line: consider what the caretaker period may mean for your deal and plan accordingly. 

What the caretaker period means for corporate Commonwealth entities and Commonwealth companies

Generally speaking, CCEs and Commonwealth companies will apply the caretaker conventions. However, guidance from the Department of Prime Minister and Cabinet notes that the conventions don’t override:

• the need for entities to meet their legal obligations, or
• entities’ other compelling organisational requirements.

Commonwealth companies and CCEs have their own legal, governance and accountability regimes (think directors’ duties). They may have legal obligations that require them to act. These obligations come first.

There’s some scope for caretaker conventions to affect the operations of CCEs and Commonwealth companies. One example would be where the CCE is implementing a politically sensitive government policy or program that’s an issue in the election. 

However generally it will be business as usual for CCEs and Commonwealth companies.  They should continue to operate in line with their existing legislation, policies and priorities as reflected in their Statements of Expectations. While a new Government may issue a new SOE, that won’t happen during the caretaker period.

Significant appointments

The conventions also mean that Government doesn’t make significant appointments during a caretaker period.

This applies to significant public service appointments but also applies to significant executive appointments for CCEs and Commonwealth companies. New CEOs and Chairs of CCEs are not appointed during the caretaker period (although acting or short-term arrangements may be made).

Shareholder Ministers are unlikely to make business decisions during the caretaker period (other than routine, non-controversial ones). Significant decisions that require Ministerial consultation or approval won’t proceed until after the election is finalised.

Bills for legislation before the House of Representatives lapse when the House is dissolved: any Bills affecting a CCE’s operations will have to be reintroduced into the newly constituted House. The Governor-General doesn’t assent to Bills after the House is dissolved (even those that have passed both Houses of Parliament before dissolution).

Delegated legislation is only made if doing so is consistent with the caretaker conventions. Controversial delegated legislation – like Ministerial directions - are not made during the caretaker period.

When’s the next federal election?

The latest day that a House of Representatives and half-Senate election can be held is 17 May 2025. The writs must be issued at least 33 days before then (14 April 2025).

A House of Representatives only election could be held as late as 27 September 2025. But that’s unlikely, because it would also require a standalone half-Senate election to be held earlier, something that hasn’t happened in more than 50 years.

There is a WA State election on 8 March 2025, which may complicate the timing for a Federal election. 

The caretaker period starts when the House is dissolved

The caretaker period starts when the House of Representatives is formally dissolved. This usually occurs a few days after the election date is announced by the Prime Minister.  

It ends when:

• the re-election of the incumbent government is clear, or
• if there is a change in government, when a new government is sworn in.

If some pollsters are right, and we’re headed for minority government, this might not be known for some time after election day.  

The decisions of government that are affected by the caretaker period

Only important decisions are affected by caretaker conventions, so most operations of government continue. What constitutes an important decision is a matter of judgment (usually for the public service, sometimes the caretaker Minister). Factors for consideration include:

• the political sensitivity of the decision
• how difficult it would be to unwind the decision.

Here is a summary of the types of decisions that can be affected by the caretaker conventions.

If you need a significant decision to be made by government after the caretaker period starts, you’ll just have to wait longer than usual.

So — start planning for the caretaker period now.