Author: roymorgansocial

NAB faces even bigger remuneration strike

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Original article by James Thomson
The Australian Financial Review – Page: 31 : 14-Dec-18

Investors who account for more than 213 million shares in Westpac abstained from voting on the bank’s remuneration report at its 2018 AGM. Had these shares been voted, the proportion of votes cast that rejected the report could have been much higher than the 63 per cent that was recorded. Meanwhile, there is speculation that the "no" vote at National Australia Bank’s AGM could be at least 70 per cent. Key issues for shareholders are likely to be the bonus received by former executive Andrew Hagger and NAB’s decision to move chairman Ken Henry to a single variable pay structure.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, TELSTRA CORPORATION LIMITED – ASX TLS

Crackdown delivers tax windfall

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Original article by Ben Butler
The Australian – Page: 19 & 22 : 14-Dec-18

Woodside Petroleum and Roy Hill Holdings are among 722 large companies that did not pay any tax in 2016-17. Large corporations paid a combined total of $45.7bn in taxes during the financial year, compared with $38.2bn previously. The Commonwealth Bank and BHP paid the most tax, at $3.9bn and $3.27bn respectively. The federal government’s corporate tax revenue was bolstered by factors such as a rise in commodity prices and the impact of its Multinational Anti-Avoidance Law, which has targeted global technology companies in particular.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROY HILL HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP GROUP LIMITED – ASX BHP, AUSTRALIAN TAXATION OFFICE, HANCOCK PROSPECTING PTY LTD, BAE SYSTEMS AUSTRALIA LIMITED, ROCKPOOL DINING GROUP, TAX JUSTICE NETWORK, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, GOOGLE AUSTRALIA PTY LTD, FACEBOOK AUSTRALIA PTY LTD

Call for 10pc royalty on offshore gas amid boom

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Original article by Ben Butler
The Australian – Page: 22 : 14-Dec-18

The federal government gained $946m in revenue from the petroleum resource rent tax in 2017, according to data from the Australian Taxation Office. However, the McKell Institute estimates that revenue from the PRRT could increase by $2.8bn a year if a 10 per cent royalty were to be imposed on offshore gas projects. The left-wing think tank argues that the PRRT was designed primarily to encourage the development of marginal oil projects and has little relevance to Australia’s booming gas industry.

CORPORATES
AUSTRALIAN TAXATION OFFICE, McKELL INSTITUTE, CHEVRON CORPORATION, EXXONMOBIL CORPORATION, BHP GROUP LIMITED – ASX BHP, ESSO AUSTRALIA PTY LTD, THE TAX INSTITUTE

Secret federal ICAC slammed

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 14-Dec-18

Labor leader Bill Shorten has criticised the federal government’s proposed national integrity commission, warning that the anti-corruption agency would lack transparency and it would have limited scope and powers. It would comprise a law-enforcement division and a public-sector division, but only the former will be authorised to conduct public hearings. Labor has been calling for an anti-corruption watchdog at federal level since early 2018; Prime Minister Scott Morrison has disclosed that the government has been working on its proposal since January, although it only recently dismissed the need for such an agency.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NEW SOUTH WALES. INDEPENDENT COMMISSION AGAINST CORRUPTION

BHP left holding Chilean mine after deal collapses

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Original article by James Thomson
The Australian Financial Review – Page: 23 : 14-Dec-18

Private equity firm EMR Capital will not proceed with a deal to buy BHP Group’s Cerro Colorado copper mine in Chile. EMR has advised that the $US320m ($443m) transaction has been abandoned due to problems in meeting its deadline to secure financing. The deal had been announced in June; EMR recently acquired a majority stake in a copper mine in Zambia.

CORPORATES
BHP GROUP LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, PT ADARO ENERGY TBK

Flinders’ plan to delist angers small holders

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Original article by Paul Garvey
The Australian – Page: 29 : 14-Dec-18

Shares in Flinders Mines were placed in a trading halt on 13 December, after the iron ore producer flagged plans to delist. Chairman Neil Warburton says Flinders’ board considered a number of options for its iron ore project in the Pilbara and felt that going private is the best strategy, as it will allow the company to gain funding from private equity firms and other funds that invest in such projects. The delisting proposal has the support of its major shareholder, Todd Corporation.

CORPORATES
FLINDERS MINES LIMITED – ASX FMS, TODD CORPORATION, BBI INVESTMENT GROUP

Facebook lashes algorithm watchdog oversight

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 4 : 13-Dec-18

Social media giant Facebook has questioned the merits of the Australian Competition & Consumer Commission’s proposal for a new regulator to be given responsibility for monitoring digital platforms’ algorithms. Facebook’s Andy O’Connell says the proposal is unnecessary and unworkable, and he has rejected suggestions that the company lacks transparency regarding its algorithms. He adds that Facebook will continue to engage with the ACCC as the competition watchdog prepares to release the final report of its inquiry into digital platforms in mid-2019.

CORPORATES
FACEBOOK INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GOOGLE INCORPORATED

Labor looks at sector-wide right to strike

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Original article by Phillip Coorey, David Marin-Guzman
The Australian Financial Review – Page: 4 : 13-Dec-18

Labor’s workplace relations spokesman Brendan O’Connor has advised that industry-wide enterprise bargaining for low-paid workers will be part of its election platform. He has also told the National Press Club that Labor will consider reforms that would permit workers to engage in sector-wide industrial action during enterprise bargaining negotiations. O’Connor argues that evidence from other OECD countries that allow pattern bargaining suggests that there would a low risk of sector-wide industrial action. Key employer groups oppose the reintroduction of pattern bargaining.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA), ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIAN INDUSTRY GROUP, ACTU, THE MENZIES RESEARCH CENTRE LIMITED, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

US giants castigate anti-encryption laws

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Original article by John Durie, Tom McIlroy
The Australian Financial Review – Page: 2 : 13-Dec-18

Facebook, Google, Apple and Microsoft are among a coalition of global technology companies that have criticised the federal government’s encryption laws. The Reform Government Surveillance coalition has described the new laws as "deeply flawed" and urged the government to make amendments when parliament resumes. The encryption bill was passed after Labor backed down on its proposed amendments, although the government has signalled that it may open to some of Labor’s changes.

CORPORATES
FACEBOOK INCORPORATED, GOOGLE INCORPORATED, APPLE INCORPORATED, MICROSOFT CORPORATION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF HOME AFFAIRS, DROPBOX INCORPORATED, SNAP, EVERNOTE, OATH, YAHOO! INCORPORATED, UNITED STATES. NATIONAL SECURITY AGENCY, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION

Labor’s spending plans could hit a wall

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Original article by John Kehoe
The Australian Financial Review – Page: 5 : 13-Dec-18

Labor plans to increase tax revenue by about $30bn over four years if it wins the 2019 federal election, and by nearly $280bn over a decade. However, the majority of Senate crossbenchers oppose Labor’s key tax policy initiatives, including its negative gearing reforms and the abolition of cash refunds for excess dividend imputation credits. Analysis suggests that Labor’s tax revenue would be up to $19bn lower than forecast if the Senate were to reject its key tax measures.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, AUSTRALIAN CONSERVATIVES, AUSTRALIAN GREENS, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY