O75 Public Administration

$1bn scandal hits Westpac

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Original article by Joyce Moullakis, Greg Brown
The Australian – Page: 1 & 8 : 21-Nov-19

Prime Minister Scott Morrison says banks must "lift their game" in the wake of revelations that Westpac has been charged with more 23 million breaches of anti-money laundering and counter-terrorism financing laws. Amongst other things, Austrac’s statement of claim alleges that Westpac failed to conduct due diligence on 12 customers linked to child exploitation in the Philippines. Brett Le Mesurier of Shaw & Partners says Westpac may face a larger penalty than the Commonwealth Bank’s record $700m fine in 2018 for more than 53,000 breaches of financial crime laws. Westpac could potentially incur fines in excess of $1bn.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Unpaid wages bill at $1.4bn annually

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Original article by Andrew White, Ewin Hannan
The Australian – Page: 17 & 21 : 20-Nov-19

More than $500m worth of wage underpayments have been disclosed to date; however, modelling by accounting firm PwC suggests that in total, Australian workers may be underpaid by up to $1.35bn a year. The modelling, which is based on data from the Fair Work Ombudsman, shows that up to 13 per cent of all workers may be underpaid, with construction workers found to be most at risk of being underpaid. The federal government is considering the introduction of criminal penalties for wage theft, as well as an increase in civil penalties.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. FAIR WORK COMMISSION, WOOLWORTHS GROUP LIMITED – ASX WOW, 7-ELEVEN STORES PTY LTD, SUPER RETAIL GROUP LIMITED – ASX SUL, MICHAEL HILL INTERNATIONAL LIMITED – ASX MHJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

ANZ-Roy Morgan Consumer Confidence down to 109.9

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Original article by Roy Morgan
Market Research Update – Page: Online : 20-Nov-19

ANZ-Roy Morgan Australian Consumer Confidence fell 1.1% to 109.9 in the week ended 17 November. Households’ views towards current financial conditions fell 2.6%, while views towards future financial conditions declined by 4.9%; both these subindices are near their multi-year lows. However, consumers’ views toward current economic conditions rose 0.3% and views towards future economic conditions gained 0.2%. The ‘time to buy a major household item’ index gained 0.4% after falling 3.9% in the previous week. The four-week moving average of inflation expectations declined by 0.1ppt to 3.9% as the weekly reading fell to 3.8%, its lowest level since the end of June.

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

$25k gap shows gender pay parity a distant dream

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Original article by Stephen Lunn
The Australian – Page: 2 : 19-Nov-19

New data from the Workplace Gender Equality Agency shows that the gender pay gap has narrowed by 0.5 per cent in 2019, to 20.8 per cent. Meanwhile, the agency’s latest gender equality scorecard shows that more than 50 per cent of employers have yet to introduce employer-funded paid parental leave, while the proportion of female CEOs remains unchanged at 17.1 per cent. However, WGEA director Libby Lyons notes that more employers are now offering paid domestic violence leave.

CORPORATES
AUSTRALIA. WORKPLACE GENDER EQUALITY AGENCY

There’s no point in homing in on pension asset test

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Original article by Judith Sloan
The Australian – Page: 12 : 19-Nov-19

No government for the foreseeable future is going to contemplate including a family home in the age pension assets test. For one thing, only about seven per cent of the nation’s two million age pensioners would be affected if homes valued at more than $1.5m were to be subject to the assets test. This would mainly affected pensioners in Sydney and Melbourne. Meanwhile, home equity release products are worth considering in relation to retirement incomes policy, although existing products of this nature are undesirable, including the federal government’s own Pension Loan Scheme.

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Keating’s blast on China policy

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Original article by Andrew White, Greg Brown
The Australian – Page: 1 & 7 : 19-Nov-19

Former prime minister Paul Keating has used a speech in Sydney to criticise the federal government’s handling of Australia’s relationship with China. He said it is in the national interest to not ignore the "biggest shift in economic power in world history". Meanwhile, Treasurer Josh Frydenberg told the conference that a collective effort will be needed to restore the rules-based global trading system. He also expressed optimism that the US and China can reach agreement on resolving their trade war.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNIVERSITY OF NEW SOUTH WALES, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, CHINA CONSTRUCTION BANK, COMMUNIST PARTY (CHINA)

Treasurer warns of ageing bill

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 19-Nov-19

Treasurer Josh Frydenberg will use a speech on 19 November to defend the federal government’s commitment to keeping the Budget in surplus. He will tell the Committee for Economic Development of Australia that a balanced Budget will enable the government to begin paying down debt, respond to disasters and address the long-term needs of an ageing nation. Frydenberg will emphasise the importance of population, participation and productivity in addressing the latter issue, noting that action is needed to boost productivity in particular.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

IR class action costs ruling appealed

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 10 : 18-Nov-19

UK-based litigation funder Augusta Ventures will appeal a court ruling that it must pay security of costs up-front in a wage theft class action. The case centres on allegations that BHP and labour hire firms underpaid casual workers at the Mount Arthur coal mine. Australian Industry Group CEO Innes Willox warns that there is the potential for workers to receive nothing from a class action payout once a litigation funder has received its share. He has called for the sector to be subject to the same regulation as financial services providers.

CORPORATES
AUGUSTA VENTURES, BHP GROUP LIMITED – ASX BHP, THE AUSTRALIAN INDUSTRY GROUP, ADERO LAW

Energy fix could isolate Victoria

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Original article by Mark Ludlow, Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 6 : 18-Nov-19

Federal Energy Minister Angus Taylor will shortly meet with his state and territory counterparts at the Council of Australian Governments energy council meeting. He will use a speech in Sydney on 18 November to outline his plans to negotiate a bilateral energy and climate policy agreement with each state, based on its unique circumstances. However, Taylor has warned that he will only strike deals with states that are ‘collaborative’. Energy Security Board chair Kerry Schott is supportive of state-based deals, provided they do not undermine existing national electricity rules.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. ENERGY SECURITY BOARD, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Turnbull told he was losing quiet Australians

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Original article by Aaron Patrick
The Australian Financial Review – Page: 1 & 4 : 15-Nov-19

Former prime minister Malcolm Turnbull was advised to change his political strategy by Angus Taylor after the Coalition almost lost the 2016 election. Taylor sent Turnbull a confidential memo in the wake of the election, but Turnbull never acknowledged it. Taylor eventually became so frustrated with Turnbull that he became one of the ministers who quit on him, with their actions leading to Turnbull being replaced by Scott Morrison. Taylor’s revelations are contained in a new book ‘The Surprise Party, How the Coalition Went from Chaos to Comeback’; his underlying message to Turnbull in his memo was that Turnbull was losing the ‘quiet Australians’.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY