Author: roymorgansocial

‘Big-bang’ tax reform gone

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Original article by David Crowe
The Australian – Page: 1 & 4 : 12-Feb-16

The Australian Government has abandoned plans for large-scale tax reform underpinned by a rise in the GST, although it still wants to reduce personal income tax rates. However, Treasurer Scott Morrison has conceded that tax cuts will have to be much more modest than originally intended. He also said that any reduction in the company tax rate would have to be implemented over several years. Meanwhile, Treasury estimates that economic growth will slow by 0.35 per cent over four years if income taxes are not reduced.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, KPMG AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF HUMAN SERVICES

Two million Australians take a performance enhancing supplement: Berocca

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Feb-16

A Roy Morgan Single Source survey has found that 10 per cent of Australians aged 14+ took Berocca in the year to December 2015. The survey shows that Berocca consumption varies by age, but it notably has two distinct peaks: it rises sharply from teenagers up to 22-24 year-olds, when 19 per cent take Berocca at least once in a 12-month period; the rate of consumption then declines throughout the late 20s and 30s to just below the norm, but bounces back up throughout the 40s to a secondary peak of 15 per cent among 45-49 year-olds before its popularity again declines. Meanwhile, Essendon supporters are 39 per cent more likely than average to have had Berocca in the past year, while AFL supporters overall are eight per cent more likely.

CORPORATES
ROY MORGAN RESEARCH LIMITED, ESSENDON FOOTBALL CLUB, AUSTRALIAN FOOTBALL LEAGUE

Off colour: fewer Aussie women buying eye shadow

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Feb-16

A Roy Morgan Single Source survey has found that 13 per cent of Australian women aged 14+ bought eye shadow in any given six-month period during the year to September 2015. This compares with 16 per cent in the year to September 2011. However, category-leader Revlon has actually increased its customer base, and is now chosen by 13 per cent of all women who buy eye-shadow in an average six months (up from 11 per cent in 2011). Revlon’s recent growth is primarily driven by its increased popularity among women aged 35-49. The Maybelline and MAC brands have also bucked the downward trend of the last few years.

CORPORATES
ROY MORGAN RESEARCH LIMITED, REVLON AUSTRALIA, MAYBELLINE, MAC COSMETICS INCORPORATED, AVON AUSTRALIA

RBC picks BHP Billiton over Rio Tinto

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Original article by Amanda Saunders
The Australian Financial Review – Page: 30 : 11-Feb-16

Paul Hissey of RBC Capital has a share price target of $A15 on BHP Billiton, whose shares are trading at around $A15.67 at present. The analyst also has a "sector perform" rating on the resources giant, and forecasts that BHP will reduce its dividend by 75 per cent when its 2015-16 interim results are released later in February 2016. Meanwhile, Hissey has a share price target of $A37 and an "underperform" rating on Rio Tinto, whose stock is trading at $A41.53.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, RBC CAPITAL MARKETS, GLENCORE PLC

Don’t play me for a fool, tax chief tells tech giants

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Original article by Adam Creighton
The Australian – Page: 2 : 11-Feb-16

Australia’s Commissioner of Taxation, Chris Jordan, has told a Senate committee that he is prepared to pursue legal action against multinational companies that continue to evade their tax liabilities. He said six companies have now been identified by the Australian Taxation Office as being at the highest risk of non-compliance with their tax obligations, while it is reviewing the tax affairs of 290 large companies.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, APPLE INCORPORATED, MICROSOFT CORPORATION, CHEVRON CORPORATION, ORICA LIMITED – ASX ORI

WIN sues Nine over regional streaming

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 11-Feb-16

Nine Entertainment Company (NEC) recently began offering live streaming of its primary channel, which allows the media group to reach regional audiences. However, regional affiliate WIN Corporation is expected to ask the Supreme Court of New South Wales to grant an interim injunction to prevent NEC from streaming 9Now in regional areas. WIN is owned by Bruce Gordon, who also has a 14.95 per cent stake in NEC.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, WIN CORPORATION PTY LTD, SUPREME COURT OF NEW SOUTH WALES, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, PRIME MEDIA GROUP LIMITED – ASX PRT

OZ Minerals reaps the reward of high grades

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 11-Feb-16

OZ Minerals has posted a 2015 net profit of $A130.2m, compared with $A48.5m for the previous calendar year. CEO Andrew Cole is upbeat about the group’s outlook for 2016, forecasting an increase in production of both gold and copper. He is confident that OZ Minerals will be able to keep paying a dividend while developing the Carrapateena copper project. Shareholders will receive a full-year dividend of $A0.20 per share.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BELL POTTER SECURITIES LIMITED, CITIGROUP PTY LTD, AUSTRALIAN FEDERAL POLICE, RENAISSANCE MINERALS LIMITED – ASX RNS

Property returns trounce shares

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Original article by Simon Evans
The Australian Financial Review – Page: 29 : 11-Feb-16

The Australian sharemarket has delivered a total return of 58 per cent over the last decade. However, residential property prices in Melbourne and Sydney have risen by 92 per cent over the same period. Domain Group’s chief economist Andrew Wilson does not expect the housing market to enjoy such gains in the next decade, warning that growth is likely to be much lower. Perpetual’s Matt Sherwood says equities investors should also expect lower growth in dividends in the near-term.

CORPORATES
DOMAIN.COM.AU, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Boral shifts focus to new infrastructure

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Original article by Tim Binsted
The Australian Financial Review – Page: 19 : 11-Feb-16

Building materials group Boral has posted a 2015-16 interim net profit of $A136.6m, which is 31 per cent higher than previously. EBIT rose by 19 per cent to $A200m, but revenue was four per cent per cent lower at $A2.2bn. The group’s construction materials division has reported half-year EBIT of $A159m, an increase of six per cent, while its US arm posted EBIT of $A8m. Shareholders will receive an interim dividend of $A0.11 per share.

CORPORATES
BORAL LIMITED – ASX BLD, RBC CAPITAL MARKETS, CSR LIMITED – ASX CSR, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, PERPETUAL LIMITED – ASX PPT

CBA holds dividend as urgency fades

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Original article by James Eyers
The Australian Financial Review – Page: 17 & 20 : 11-Feb-16

Commonwealth Bank shareholders will receive a 2015-16 interim dividend of $A1.98 per share, which equates to a payout ratio of around 70 per cent. The banking major has indicated that its full-year dividend payout will be 70-80 per cent of profits. Meanwhile, CEO Ian Narev says the bank is "very happy" with its current level of capital, and he expects the Australian Prudential Regulation Authority (APRA) to let banks increase their capital levels gradually. The Commonwealth Bank’s common equity tier 1 capital level is now 10.2 per cent, while APRA requires a minimum of eight per cent.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NORDEA BANK AB, UBS AG