Author: roymorgansocial

Shorten’s magic pudding

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Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 4 : 4-Apr-19

Tax relief for Australians with annual income of less than $40,000 will be a key focus for Labor leader Bill Shorten in his Budget reply speech on 4 April. Workers whose income is below this threshold will be offered more generous tax cuts than those outlined in the Budget. Meanwhile, the federal government has announced that the one-off cash payment cash for pensioners, single parents and carers to offset rising energy costs will be extended to Newstart recipients. This will add about $80m to the cost of the Budget measure.

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

Flatter scales an incentive to work more

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 8 : 4-Apr-19

Labor contends that the 10-year tax cuts package outlined in the April 2019 Budget is regressive as it will reduce the tax burden of people on high incomes. The current income tax brackets would be replaced by just three in mid-2024. University of Canberra labour economist Phil Lewis argues that while the tax system would be slightly less progressive under the Coalition’s plan, it would reduce the disincentive to earn more. Sinclair Davidson from the Institute of Public Affairs in turn says that flatter personal income tax rates would reduce bracket creep.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF CANBERRA, INSTITUTE OF PUBLIC AFFAIRS LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Stunning lost opportunity on innovation

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Original article by Ben Potter
The Australian Financial Review – Page: 1 & 6 : 4-Apr-19

Former Innovation Science Australia chairman Bill Ferris has criticised the April 2019 Budget’s lack of policy announcements regarding innovation. He describes it as a missed opportunity to address declining investment in innovation by both government and business. Ferris argues that innovation is a key driver of productivity. The federal government will also reduce funding for the R&D tax incentive program by a further $1.35bn over four years. Krish Patel of Element 8 Group warns that government policy is forcing business start-ups to outsource R&D work offshore.

CORPORATES
INNOVATION SCIENCE AUSTRALIA, ELEMENT 8 GROUP, AUSTRALIAN TAXATION OFFICE, CSIRO, GEOSCIENCE AUSTRALIA

Australia Post held up comp claims

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Original article by Aaron Patrick, David Marin-Guzman
The Australian Financial Review – Page: 7 : 3-Apr-19

Comcare will review Australia Post’s personnel files over the next three years after an investigation found that Australia Post breached its obligations under workers’ compensation rules in 2012, 2013 and 2014. The investigation, conducted by Australia Post at the request of the Safety, Rehabilitation & Compensation Commission, found that Australia Post managers delayed the processing of workers’ compensation claims in order to meet performance targets. The Comcare review is to ensure that there is no repeat of these activities.

CORPORATES
AUSTRALIA POST, COMCARE AUSTRALIA, AUSTRALIA. SAFETY, REHABILITATION AND COMPENSATION COMMISSION

AI, robots will worsen inequality, says expert

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Original article by Damon Kitney
The Australian – Page: 41 : 3-Apr-19

Lord Adair Turner has told the Creative Innovation 2019 Asia Pacific conference in Melbourne that increased automation in the workforce will lead to greater inequality. Lord Turner, who is with the Institute for New Economic Thinking, also said that increased automation, along with the rise of artificial intelligence, could serve to accentuate a "winner takes it all" attitude within society. He said it is important to think about the jobs that humans can do best and "to value and cherish them", and that wealth from land ownership would become more pronounced in the future.

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INSTITUTE FOR NEW ECONOMIC THINKING

Lack of action on high regional airfares disgraceful

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 5 : 3-Apr-19

An investigation by federal parliament’s rural and regional affairs and transport committee into regional air fares was due to report its findings in March 2018. However, it is now likely that it will not do so until after the federal election. Queensland MP Robbie Katter says there have been no cuts to regional air fares since the inquiry began in November 2017. Katter wants airlines to provide information to the government about how they determine air fares, while airlines have blamed airports for the high cost of regional airfares.

CORPORATES
KATTER’S AUSTRALIAN PARTY, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, ALLIANCE AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIA. SENATE STANDING COMMITTEE ON RURAL AND REGIONAL AFFAIRS AND TRANSPORT

BHP’s forecasts blown away by wild weather

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Original article by Nick Evans
The Australian – Page: 42 : 3-Apr-19

BHP has advised that Cyclone Veronica did not cause major damage to its iron ore operations in the Pilbara. However, the resources group has warned that its annual output will be reduced by 6-8 million tonnes due to the cyclone. BHP indicated earlier in 2019 that its export volumes had been cut by four million tonnes due to the forced derailment of an iron ore train in late 2018. Rio Tinto also recently downgraded its iron ore production forecast in the wake of Cyclone Veronica.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, INCITEC PIVOT LIMITED – ASX IPL, UBS HOLDINGS PTY LTD, INSURANCE COUNCIL OF AUSTRALIA LIMITED

Hopes for higher pay revised down

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Original article by David Marin-Guzman
The Australian Financial Review – Page: B8 : 3-Apr-19

The April 2019 Budget papers show that the federal government has scaled back its wage growth forecasts since the mid-year economic and fiscal outlook. It now expects wages to grow by 2.5 per cent in 2018-19 and 2.75 per cent in 2019-20. Wages growth in 2020-21 in turn is expected to be 3.25 per cent. In contrast, the Reserve Bank has forecast wages growth of about 2.5 per cent until 2020, and 2.6 per cent by mid-2021. Meanwhile, the unemployment rate is forecast to be five per cent over the forward estimates period, while the labour participation rate is expected to ease to 65.5 per cent in 2018-19.

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Move to block raids on worker funds

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Original article by Brad Norington
The Australian – Page: 16 : 3-Apr-19

The federal government is hoping to persuade the Senate to pass legislation to prevent unions from taking profits from workers’ entitlement funds before parliament rises for the election. One such fund called Protect is currently at the centre of an industrial dispute between the Maritime Union of Australia and stevedoring firm DP World; the latter wants to end its participation in the fund as part of a new enterprise bargaining agreement. With Labor unlikely to support the legislation, Industrial Relations Minister Kelly O’Dwyer will try to lobby crossbenchers for their backing.

CORPORATES
PROTECT, MARITIME UNION OF AUSTRALIA, DP WORLD, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN LABOR PARTY, ELECTRICAL TRADES UNION, UNITED FIREFIGHTERS’ UNION OF AUSTRALIA, THE NATIONAL ELECTRICAL CONTRACTORS’ ASSOCIATION

Interest rates on hold, but cuts on the cards

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Original article by David Rogers
The Australian – Page: 47 : 3-Apr-19

The Reserve Bank of Australia has signalled that it remains open to monetary policy stimulus if economic conditions justify such action, while keeping the cash unchanged at 1.5 per cent for a 32nd consecutive month. Central bank governor Philip Lowe has also noted a slowdown in global economic growth and an increase in downside risks. Marcel Thieliant of Capital Economics expects official interest rates to be reduced in the near-term.

CORPORATES
RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB