Produced as part of an overview into the key issues related to shifting from a three-year to a four-year term in the Commonwealth House of Representatives, this research note quantifies the potential economic outcome of the change. 

Three categories of benefits are assessed: 

1. Reduced direct election costs (e.g. the costs to the Australian Electoral Commission (AEC) and political parties).
2. Indirect economic benefits (e.g. delays and reductions in business investment).
3. Policy implementation benefits (e.g. more reforms and better reforms from governments).

Findings

• $4.6 billion in direct costs would be avoided over 20 years through a shift to four-year terms.
• Avoiding these direct costs is the clearest, most tangible benefit from adopting four-year terms.
• $40.7 billion in indirect benefits would be realised over 20 years.
• Policy reforms enabled in four-year terms could be worth between $14-26 billion over 20 years, with $16.5 billion found to be the most likely case.
• This does not account for the benefits of social policy reform, which could be significant.