O75 Public Administration

Unions reject calls to halt wage increase

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Original article by Greg Brown
The Australian – Page: 6 : 1-Jun-20

The Australian Industry Group is against any increase in the minimum wage in 2020, with CEO Innes Willox noting it is the first time in 30 years that it has completely opposed a rise. Willox says increasing the minimum wage is not in anyone’s interest, and if the Fair Work Commission does decide to do so it should be delayed until January 2021. Unions are seeking a $30-per-week increase in the minimum wage, while the Shop, Distributive & ­Allied Employees’ Association states that there should be a freeze on planned cuts to penalty rates if the FWC does not award an increase in the minimum wage.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. FAIR WORK COMMISSION, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

ATO to probe claims of $11m JobKeeper rort

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

Bedding company Australian Comfort Group is alleged to have deliberately depressed monthly revenue in order to become eligible for up to $11 million in wage subsidies under the JobKeeper scheme. The Australian Taxation Office will investigate the allegations. The Australian Comfort Group has claimed that the person who has made the allegations was only with the company for a short period of time and has now lodged a claim under the Fair Work Act that includes compensation of $200,000. The company contends that any investigation of its eligibility to claim the JobKeeper payment "will stand up to scrutiny".

CORPORATES
AUSTRALIAN COMFORT GROUP PTY LTD, AUSTRALIAN TAXATION OFFICE

Australia could avoid technical recession fate

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Original article by William McInnes
The Australian Financial Review – Page: 21 : 1-Jun-20

Most economists expect GDP data to be released on 3 June will show that the Australian economy contracted in the March quarter. However, five of the 24 economists polled by Bloomberg believe that Australia recorded positive GDP growth for the period, despite the impact of summer bushfires and the coronavirus pandemic. Phil Odonaghoe of Deutsche Bank expects the economy to avoid a technical recession, although David Plank of the ANZ Bank contends that this is moot given that nearly 20 per cent of Australians are unemployed or underemployed.

CORPORATES
BLOOMBERG LP, DEUTSCHE BANK AG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Treasurers at odds over call to abolish payroll tax

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Original article by Sumeyya Ilanbey
The Age – Page: Online : 1-Jun-20

Federal Treasurer Josh Frydenberg says he is keen to work with the states and territories to help reduce the payroll tax burden on companies. Frydenberg says he would "love the states" to get rid of the tax, but Victorian Treasurer Tim Pallas has rejected any likelihood that the state will do so. Payroll tax generated $6.2 billion for the Victorian government in the 2018-19 financial year, and Pallas says abolishing it would reduce the government’s ability to fund services and infrastructure projects.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF TREASURY AND FINANCE

Retail union stands firm over BOOT

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 29-May-20

The Shop, Distributive & Allied Employees’ Association has expressed support for an overhaul of the enterprise bargaining system. However, national secretary Gerard Dwyer says the union is of the view that the ‘better off overall test’ is not the primary cause of delays in negotiating and implementing workplace agreements. Employers’ group contend that the BOOT is a key problem that needs to be addressed. The proportion of private sector employees who are covered by enterprise agreements has fallen from 22 per cent in 2013 to just 12.8 per cent.

CORPORATES
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

Lowe urges paying subsidies for longer

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Original article by Patrick Commins
The Australian Financial Review – Page: 4 : 29-May-20

Treasurer Josh Frydenberg has reiterated that the JobKeeper wage subsidy scheme and the doubling of the JobSeeker allowance are temporary and targeted measures. However, Reserve Bank of Australia governor Philip Lowe has told a Senate committee hearing that there may be a case for extending some of the coronavirus stimulus measures; he has warned that withdrawing the fiscal stimulus too soon could hinder the economy’s recovery from the pandemic. Lowe also said that recent economic data suggests that the downturn may not be as severe as had been forecast.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Fast track to post-virus freedom

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 29-May-20

A meeting of the national cabinet on 29 May will review the progress of the states and territories in easing coronavirus lockdown restrictions in recent weeks. Meanwhile, the federal government’s target date of July to re-open the economy may be brought forward if the nation’s success in containing the virus’s spread is sustained. The Australian Health Protection Principal ­Committee is expected to recommend doing so earlier if the nation continues to record fewer than 10 new cases of the coronavirus each day. The meeting is also expected to consider retaining the national cabinet model in the post-coronavirus environment.

CORPORATES
AUSTRALIAN HEALTH PROTECTION PRINCIPAL COMMITTEE

PM touts a new era of state unity

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Original article by Geoff Chambers, Simon Benson
The Australian – Page: 1 & 5 : 26-May-20

Prime Minister Scott Morrison will use a National Press Club speech on 26 May to outline the key principles of the federal government’s JobMaker economic plan for the post-coronavirus environment. Amongst other things, Morrison will call for greater co-operation between unions and business as part of a push to overhaul the industrial relations system. He will also stress the need for changes to the jobs training sector, arguing that the current system for allocating skills funding to the states and territories is not working.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PRESS CLUB (AUSTRALIA)

Zahra calls for overhaul of retail awards

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Original article by Glenda Korporaal
The Australian – Page: 15 : 25-May-20

Retail sector employees are covered by 122 separate industry awards, and Australian Retailers Association CEO says this should be reduced as part of the nation’s economic recovery from the pandemic. Zahra has also urged greater flexibility with regard to stores’ trading hours and penalty rates in the sector. He argues that the complexity of the awards system is contributing to the growing problem of wage underpayments in the retail sector. Zahra warns that retail sales could fall sharply when the JobKeeper scheme is phased out in September.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION

JobKeeper gaffe bonus to help rein in debt

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Original article by Geoff Chambers, Greg Brown
The Australian – Page: 1 & 5 : 25-May-20

Prime Minister Scott Morrison concedes that responsibility for the massive over-estimate of the cost of JobKeeper ultimately rests with him. The wage subsidy scheme is now expected to cost about $70bn rather than the $130bn that had been budgeted, after it was revealed that about 1,000 businesses had mistakenly entered the amount of money they expected to receive under the scheme rather than the number of eligible employees. Morrison says the revised cost of JobKeeper will reduce government borrowings, while Treasurer Josh Frydenberg has ruled out broadening the eligibility criteria for the scheme.

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