Author: roymorgansocial

To surplus with love

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Original article by Simon Benson
The Australian – Page: 1 & 5 : 3-Apr-19

The federal government’s April 2019 Budget has forecast a surplus of $7.1bn in 2019-20, and accumulated surpluses of $45bn over the four-year forward estimates period. The government also expects net debt to be reduced to zero by 2029-30. Highlights of the Budget include tax relief for individuals, dual-income families and small businesses, an additional $100bn worth of funding for infrastructure projects and $525m to create 80,000 apprenticeships in sectors that are experiencing skills shortages.

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

Top tax rate for 13.3 million will be 30pc

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Original article by Joanna Mather
The Australian Financial Review – Page: B3 : 3-Apr-19

The April 2019 Budget includes some $302m worth of tax relief over the next decade, including the $144m tax package announced in 2018. Individuals will benefit from an immediate increase in the low- to middle-income tax offset, with the tax cut to be available when they lodge tax returns for 2018-19. The 32.5 per cent income tax bracket will be reduced to 30 per cent from 1 July 2024, and an estimated 70 per cent of taxpayers will be in this bracket. Just six per cent will pay the highest marginal tax rate of 45 per cent from mid-2024.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

ANZ-Roy Morgan Australian Consumer Confidence up to 114.7

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Original article by Roy Morgan
Market Research Update – Page: Online : 3-Apr-19

ANZ-Roy Morgan Australian Consumer Confidence rose 2.6% to 114.7 in the week ended 31 March. The uptick has resulted in the index closing near a one-month high. Households’ views towards current financial conditions fell 1.5%, while views towards future financial conditions rose 0.4% after a fall of 3.3% in the previous week. Consumers’ views toward current economic conditions jumped 8.1% and views towards future economic conditions rose 1.3%. The ‘time to buy a household item’ index gained 5%.

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ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Start-ups reveal their federal budget wish-lists

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Original article by Liz Main
The Australian Financial Review – Page: 19 : 2-Apr-19

Clarification concerning research and development tax incentives is one of the biggest points of interest for technology start-ups with regard to the federal government’s April 2019 Budget. Des Hang, the CEO and co-founder of vehicle subscription service Carbar, says it is too easy for larger companies to be able to claim tax breaks under the R&D incentive scheme. Investment in better education programs is something else that the technology sector wants to see, along with immigration reform.

CORPORATES
CARBAR, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ATLASSIAN CORPORATION PLC, 99DESIGNS PTY LTD, FINTECH AUSTRALIA PTY LTD

Woolworths bites the bullet on Big W

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 2-Apr-19

Woolworths has advised that it will close 30 of its Big W department stores, which will reduce the number of outlets by about 16 per cent. Two of Big W’s distribution centres will also be closed as part of the restructuring program, which will result in a one-off impairment charge of $370m. Woolworths has forecast that Big W will post a loss of least $80m in fiscal 2019, but CEO Brad Banducci says the retail giant is committed to restoring the chain to profitability. The store closures could result in the loss of up to 1,000 jobs, but Woolworths hopes to redeploy many employees.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, BIG W DISCOUNT STORES, EG GROUP, PLATO INVESTMENT MANAGEMENT LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, KMART AUSTRALIA LIMITED

Ageing a $36b hit to budget within a decade

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Original article by Matthew Cranston
The Australian Financial Review – Page: 10 : 2-Apr-19

The Parliamentary Budget Office has predicted that Australia’s ageing population will see government revenue fall by around $20 billion within the next 10 years. This is due to reduced workforce participation, which results in less people paying tax; spending on the aged is tipped to rise by $16 billion over the same period. However, the PBO notes that immigration can help to offset the possible impact of ageing on the budget, as most migrants tend to be younger than the average, while they can boost the birth rate by increasing the number of people of reproductive age.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Coalition to ram through budget tax cuts ahead of poll

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Original article by Phillip Coorey, Andrew Tillett
The Australian Financial Review – Page: 1 & 6 : 2-Apr-19

Labor has indicated that it will not oppose tax cuts in the April 2019 Budget if they largely benefit people on low and middle incomes. Changes to the Low Income Tax Offset are expected to be among the tax reforms to be outlined in the Budget. The tax cuts and one-off cash payments to offset rising energy costs are likely to be put to parliament on 3 April, with a view to making it harder for Labor to repeal them if it wins the election. Opposition Leader Bill Shorten contends that Labor’s tax cuts package will be of more benefit to 10 million working Australians than the Coalition’s policy.

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

Big banks miss out as nimble lenders pounce

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Original article by James Frost
The Australian Financial Review – Page: 17 : 2-Apr-19

Specialised lenders such as Scottish Pacific say their customer base is increasing due to the stricter lending standards of the major banks. Scottish Pacific CEO Peter Langham notes that many of the firm’s small business customers would traditionally have secured funding against property from a major bank. Prospa’s co-founder Beau Bertoli agrees that small businesses are finding it harder to secure financing from big banks, noting that they are scrutinising loan applications more carefully.

CORPORATES
SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, PROSPA GROUP LIMITED, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, JUDO CAPITAL PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Poor timing for media laws: Labor

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Original article by Andrew Tillett
The Australian Financial Review – Page: 8 : 2-Apr-19

Attorney-General Christian Porter has rejected Labor’s claims that the federal government has refused to show it a draft of proposed social media legislation. A spokesperson for Porter says the bill has been sent to Labor. Under the legislation, social media executives could go to jail for up to three years if they fail to remove terrorist-related content from their platforms sufficiently quickly. The government wants the legislation passed in the three sitting days before the federal election is called, with shadow attorney-general Mark Dreyfus accusing the government of setting a "ridiculous timetable" for getting the legislation through parliament.

CORPORATES
AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN LABOR PARTY

ALP plan reignites carbon wars

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 2-Apr-19

Prime Minister Scott Morrison has criticised Labor’s proposed baseline and credit scheme, describing it as a "massive tax on jobs" that will force affected companies to spend $35bn to buy offshore carbon credits. However, the Greens argue that the scheme does not go far enough, and it should cover a broader range of industries. Greens MP Adam Bandt adds that allowing the use of international carbon permits will delay Australia’s transition to 100 per cent renewable energy. Morrison has also criticised Labor’s 2030 target for electric vehicles to comprise 50 per cent of new cars that are sold in Australia.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, THE AUSTRALIAN INDUSTRY GROUP, BUSINESS COUNCIL OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA