O75 Public Administration

Tax reform pushed onto the states

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 27-Jul-20

New South Wales Treasurer Dominic Perrottet has been leading a push for tax reform, including the goods and services tax, payroll tax and stamp duties. The federal government wants its NSW counterpart to outline clear proposals for tax reform, amid doubts as to whether Perrottet has much support within the state government for his proposals. Prime Minister Scott Morrison has previously stated that the federal government will not consider tax reform proposals unless there is agreement among the states, while Federal Liberal MP Jason Falinski contends that the worst taxes are state-based and can be changed without any involvement at federal level.

CORPORATES
NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Thatcher claim fighting words to Labor, ACTU

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Original article by Joe Kelly
The Australian – Page: 4 : 27-Jul-20

Australian Chamber of Commerce & Industry CEO James Pearson has backed a push to extend temporary changes to the Fair Work Act for employers that will not be eligible for the JobKeeper scheme after September. He has urged Labor and the ACTU to support extending the emergency measures, which allow bosses to vary the hours an employee works and the duties they perform. Shadow treasurer Jim Chalmers has expressed concern that the federal government wants to adopt an industrial relation policy similar to that of former British prime minister Margaret Thatcher.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN LABOR PARTY, ACTU

Victoria in grip of death and dismay

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Original article by John Ferguson, Joe Kelly
The Australian – Page: 1 & 5 : 27-Jul-20

Victorian Premier Daniel Andrews has not ruled out extending the stage-three lockdown after the state recorded 459 new coronavirus cases and 10 deaths from the respiratory illness on 26 July; this followed 357 new cases and five deaths on the previous day. Andrews has urged Melbourne residents to comply with social distancing rules and wear face masks in public. There are now 4,233 active cases in Victoria; 228 are receiving treatment in hospital, including 42 in intensive care. The state’s death toll has risen to 71, and 155 people have died nationwide. New South Wales has recorded 14 new coronavirus cases.

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VICTORIA. DEPT OF PREMIER AND CABINET

Highest minimum wage rate to hurt recovery

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Original article by Adam Creighton
The Australian – Page: 1 & 4 : 27-Jul-20

Data from the OECD shows that Australia has the world’s highest minimum wage, at $12.60 per hour when measured in purchasing-power adjusted US dollars. Australian Industry Group CEO Innes Willox says the data refutes arguments that the nation’s minimum wage is too low; he warns that its high level will ensure that younger people and those with limited skills will face longer periods of unemployment and underemployment. Willox adds that the minimum wage has increased by 8.5 per cent since 2017, with the Fair Work Commission approving a 1.75 per cent rise in June.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. FAIR WORK COMMISSION

L-NP (51.5%) increases lead over ALP (48.5%) in mid-July as second wave of COVID-19 hits Victoria

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Jul-20

Roy Morgan CEO Michele Levine explains: "The L-NP Government (51.5%, up 1% since June) leads the ALP (48.5%) in mid-July as a new wave of COVID-19 has forced the Melbourne metropolitan area back into lockdown. Roy Morgan Government Confidence Rating is down 9.5pts to 114.5 nationally from a month ago, but has fallen by a significant 16pts to only 104 in Victoria as other States have closed their borders to Victorians and the outbreak threatens the national economic recovery. In response the Federal Government has extended JobKeeper and JobSeeker until March 2021, however this has led to the forecast Federal Budget deficit blowing out to a record $186 billion for 2020/21."

CORPORATES
ROY MORGAN LIMITED, MORGAN POLL, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Taste of deflation as CPI plunges

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Original article by Sarah Turner
The Australian Financial Review – Page: 6 : 27-Jul-20

The economic impact of COVID-19 will be reflected in the consumer price index data for the June quarter, which will be released on 29 July. The consensus forecast is for a two per cent fall in the quarter and an 0.5 per cent decline in the year to June. However. Westpac economists expect the CPI to have declined by 2.4 per cent for the quarter and 0.9 per cent over the year. The coronavirus lockdown reduced demand for a range of goods and services in the three months to June, including petrol and travel.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC

AAA rating defies $184b deficit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 24-Jul-20

The Australian economy will contract by 2.25 per cent in 2020-21, according to forecasts in the federal government’s economic update. The nation’s official unemployment rate is in turn projected to rise from 7.4 per cent at present to 9.25 per cent by the end of the year. Treasury has also forecast a Budget deficit of $85.5bn for 2019-20, rising to around $184.5bn in 2020-21. Meanwhile, the nation’s gross debt is slated to top $851.9bn in 2020-21. Moody’s and S&P have indicated that the economic update will have no impact on Australia’s triple-A credit rating.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Jobless could reach 1.4 million by Christmas

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Original article by Matthew Cranston
The Australian Financial Review – Page: 7 : 24-Jul-20

The federal government’s economic update shows that the official unemployment rate is forecast to fall to around 8.75 per cent by June 2021. However, the Treasury notes that the measured unemployment rate could be up to 10.75 per cent by December if employers choose to give existing staff extra hours of work rather than hiring additional staff. This would lift the number of people who are unemployed to about 1.4 million. Meanwhile, wages are now expected to grow by just 1.75 per cent in 2019-20 and 1.25 per cent in 2020-21, compared with a forecast of 2.5 per cent growth in the mid-year update in December.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Bushfires royal commission granted another two months to file report

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Original article by
The New Daily – Page: Online : 24-Jul-20

The Royal Commission into National Natural Disaster Arrangements has been given until 28 October to present its final report, representing a two-month extension. Emergency Management Minister David Littleproud said commission chair Mark Binskin had sought the extension because the impact of COVID-19 had made it hard for some stakeholders to provide it with information in a timely manner. Littleproud has also announced that the federal government will allocate $88.1 million in funding over 10 years for additional research into bushfires and natural hazards.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO NATIONAL NATURAL DISASTER ARRANGEMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Frydenberg backs wider IR changes

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Original article by Ewin Hannan
The Australian – Page: 5 : 24-Jul-20

Treasurer Josh Frydenberg identified industrial relations reform as a key priority for the federal government after releasing the economic update on 23 July. He will push for temporary changes to the Fair Work Act to be extended to include businesses that will no longer be eligible for the JobKeeper wage subsidy at the end of September. Australian Industry Group CEO Innes Willox has backed the proposal, but ACTU president Michele O’Neil contends that the more flexible workplace arrangements should not be available to businesses that are no longer struggling.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, THE AUSTRALIAN INDUSTRY GROUP, ACTU