Author: roymorgansocial

Big banks grab third of $30b in super fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 12-Oct-15

Research undertaken by Rainmaker on behalf of Industry Super Australia shows that Australia’s four major banks received about 33 per cent of the $A30bn paid in superannuation fees in 2014-15. Retail super funds and not-for-profit super funds accounted for about 50 per cent and 25 per cent of fees respectively. ISA CEO David Whiteley has expressed concern about the level of transparency in the super industry.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Extending GST to education is fair, says PwC

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 9-Oct-15

Economic modelling by PricewaterhouseCoopers shows that the Australian Government could raise an additional $A3bn a year by 2019-20 by broadening the goods and services tax to include education. The firm’s modelling also shows that the annual education expenses of people on low salaries would rise by $A19 a year, while those with high incomes would pay an additional $A221 a year.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, THE TAX INSTITUTE

Penalty rates a relic of class war

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Original article by David Leyonhjelm
The Australian Financial Review – Page: 38 : 9-Oct-15

If the Australian Government is serious about job creation, it should remove penalty rates. A bill introduced by Senator David Leyonhjelm, of the Liberal Democratic Party, would remove obstacles to job creation in the restaurant, retail and tourism industries. The bill removes penalty rates for working on Saturday and Sunday. However, penalty rates would apply after the first 10 hours of work on any day.

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LIBERAL DEMOCRATIC PARTY

Woolworths ‘treasure chest’ ready to open

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Original article by Catie Low
The Australian Financial Review – Page: 15 : 9-Oct-15

Bank of America Merrill Lynch analyst David Errington estimates that Woolworths could unlock about $A3bn worth of capital by streamlining its operations. He argues that Woolworths should focus on its core food and liquor business, while retaining its gaming division and offloading Big W and exiting the loss-making Masters hardware joint venture. The Masters business in particular may come under scrutiny when Woolworths completes its board renewal process.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LOWE’S COMPANIES INCORPORATED, CITIGROUP PTY LTD, TESCO PLC, KELLOGG COMPANY, RESERVE BANK OF AUSTRALIA

Oil price may determine Woodside play

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 9-Oct-15

Crude oil is currently trading at around $US50 per barrel, and Woodside Petroleum’s chances of striking a deal with takeover target Oil Search are likely to be enhanced if the price of crude remains low. Woodside CEO Peter Coleman is reluctant to increase the $A11.6bn bid as it would be earnings dilutive, although the group may potentially be willing to accept such an outcome in the short-term in order to secure a deal.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ORD MINNETT GROUP LIMITED, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

Macquarie bulks up with Esanda

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Original article by Joyce Moullakis, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 8 : 9-Oct-15

Macquarie Group will become one of Australia’s three largest vehicle financiers after paying $A8.2bn for the Esanda Dealer Finance business. The sale of Esanda will boost the ANZ Bank’s common equity tier one capital ratio. Macquarie will partially finance the acquisition via a capital raising, with plans to tap institutional investors for $A400m via a share placement. Macquarie shares traded at $A77.84 on 8 October 2015, prior to a trading halt.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, AWAS AVIATION CAPITAL LIMITED, CROWN CASTLE AUSTRALIA PTY LTD, APACHE ENERGY LIMITED, THAMES WATER UTILITIES LIMITED, MOTO, JP MORGAN AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HNA GROUP, NOMURA AUSTRALIA LIMITED, PEPPER GROUP LIMITED – ASX PEP

Loughnane’s exit the end for power trio

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Original article by James Massola
The Age – Page: 8 : 9-Oct-15

Brian Loughnane stepped down as federal director of the Liberal Party of Australia on 8 October 2015, after 12 years in the role. Loughnane, former prime minister Tony Abbott and the latter’s ex-chief of staff Peta Credlin – who is married to Loughnane – became a powerful team in Canberra. Under their stewardship, the Liberals came close to ousting the Australian Labor Party government in 2010, before taking office in 2013. However, conflict of interest allegations plagued Loughnane and Credlin as the Liberal Party floundered under Abbott’s leadership.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Lawyers step in to calm work worries

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Original article by Katie Walsh
The Australian Financial Review – Page: 33 : 9-Oct-15

It is estimated that employees’ mental health issue cost Australian businesses about $A10bn per year in terms of lost productivity, absenteeism and claims for compensation. Alice DeBoos of law firm K&L Gates says many employers now seek advice from lawyers on how to deal with mental health issues in the workplace. She notes that there has also been a sharp rise in claims for anxiety disorders, particularly in the professional services sector.

CORPORATES
K&L GATES LLP, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, BEYOND BLUE AUSTRALIA PTY LTD, HOLDING REDLICH, MAURICE BLACKBURN PTY LTD, 7-ELEVEN STORES PTY LTD

7-Eleven alters model but legal action possible

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Original article by Adele Ferguson, Sarah Danckert, Damien Murphy
The Australian Financial Review – Page: 8 : 9-Oct-15

At present 7-Eleven franchisees currently receive 43 per cent of their stores’ profits. However, the Australian convenience store chain has proposed a new business model with a sliding scale for the profit split, based on a franchisee’s earnings. Many franchisees who attended a meeting in Sydney on 8 October 2015 were not impressed with the new business model, which was developed in response to the wage exploitation scandal.

CORPORATES
7-ELEVEN STORES PTY LTD

BoQ chief glimpses a sunnier state for bank

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Original article by Shaun Drummond
The Australian Financial Review – Page: 13 & 16 : 9-Oct-15

Bank of Queensland has posted 2014-15 cash earnings of $A$357m, which is 19 per cent higher than previously. Revenue was 17 per cent higher at $A1.08bn, while its home loan book increase by nine per cent to $A25.6bn. The value of all loans rose by seven per cent to $A40.9bn in total. CEO Jon Sutton is upbeat about the regional bank’s earnings outlook, noting that it should benefit from factors such as new capital requirements for its larger peers.

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CONTANGO ASSET MANAGEMENT LIMITED, BELL POTTER SECURITIES LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, VIRGIN MONEY (AUSTRALIA) PTY LTD