O75 Public Administration

Tax on income, profit world’s second highest

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Original article by John Kehoe
The Australian Financial Review – Page: 6 : 6-Dec-19

Australian companies are paying the third-highest share of tax to governments of OECD countries, according to a new tax report from the OECD. It also shows that personal income tax accounts for 40.3 per cent of total government revenue. The report highlights Australia’s heavy reliance on taxes on property, personal income and business profits, and will put pressure on the federal government to undertake major tax reform in order to stimulate the economy.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

PM strong-arms union busting bill into Senate

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Original article by Joe Kelly, Olivia Caisley
The Australian – Page: 7 : 6-Dec-19

The House of Representatives voted 75-65 to pass the Ensuring Integrity Bill on 5 December, after the federal government used its numbers to get the legislation through the lower house without any debate. The move was criticised by Labor leader Anthony Albanese, who accused the government of attempting to avoid scrutiny. The bill will return to the Senate when parliament resumes in 2020, after having been voted down by the upper house in late November.

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

Services won’t improve, says union

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Original article by Rosie Lewis
The Australian – Page: 6 : 6-Dec-19

The Community & Public Sector Union has criticised the federal government’s decision to streamline the bureaucracy. CPSU national secretary Melissa Donnelly warns that reducing the number of government departments will do nothing to improve the provision of government services. Donnelly notes that the Coalition has axed 18,908 public service jobs since it gained office in 2013, and she has urged the government to lift the average staffing level cap.

CORPORATES
COMMUNITY AND PUBLIC SECTOR UNION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Get lean: PM wields the axe

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Original article by Simon Benson, Geoff Chambers
The Australian – Page: 1 & 6 : 6-Dec-19

The Coalition has reduced the number of federal government departments from 18 to 14 as part of a broader overhaul of the public service. Amongst other things, the Department of Communications will be merged with the infrastructure portfolio, while the energy and resources portfolio will be folded into the industry and science portfolio. Five departmental secretaries will be retrenched as a result of the overhaul, while sources have indicated that the Coalition also intends to slash the number of government agencies.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, COMMUNITY AND PUBLIC SECTOR UNION

PM rebuffs claims of asylum deal

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Original article by Rosie Lewis
The Australian – Page: 1 & 5 : 5-Dec-19

A bill to repeal the controversial medivac laws was passed by the Senate 37-35 on 4 December, after independent senator Jacqui Lambie sided with the federal government. Prime Minister Scott Morrison had held talks with Lambie several times in recent weeks, but he has refuted suggestions that the Coalition cut a deal to secure her support. Lambie in turn has declined to reveal the nature of the proposals she had put to the government, citing national security concerns.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, CENTRE ALLIANCE, AUSTRALIA. DEPT OF HOME AFFAIRS

Economy lifts but spending at GFC levels

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Original article by Patrick Commins
The Australian – Page: 4 : 5-Dec-19

Australia’s GDP growth for the September quarter was slightly below economists’ forecasts at 0.4 per cent, while the economy grew by 1.7 per cent year-on-year. The national accounts data also shows that consumer spending increased by just 0.1 per cent during the quarter, which is its lowest rate of growth since the global financial crisis. Meanwhile, the household savings rate rose from 2.7 per cent to 4.8 per cent. Treasurer Josh Frydenberg has welcomed the GDP data, but shadow treasurer Jim Chalmers has renewed Labor’s call for economic stimulus.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS

Investment strike keeps growth low

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Original article by Glenda Korporaal
The Australian – Page: 17 & 27 : 5-Dec-19

Commonwealth Bank economist Michael Blythe says the latest GDP data shows that Australia has a two-speed economy, with private sector spending down 0.1 per cent in the September quarter and 0.3 per cent year-on-year, while public sector spending increased by 1.1 per cent and 4.8 per cent respectively. Master Builders Australia has urged the federal government to fast-track smaller infrastructure projects, with chief economist Shane Garrett noting that businesses and consumers lack the confidence to spend at present.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MASTER BUILDERS AUSTRALIA INCORPORATED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, WAGNERS HOLDING COMPANY LIMITED – ASX WGN

Australia dodges US tariff blitz

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Original article by Jacob Greber
The Australian Financial Review – Page: 11 : 4-Dec-19

US President Donald Trump has accused Brazil and Argentina of deliberately devaluing their currencies. He has retaliated by removing a tariff exemption on steel and aluminium imports from the two nations. Australian imports will continue to be subject to the tariff exemption; local aluminium producers have significantly cut their shipment to the US since May, when concerns were raised within the Trump administration about a sharp rise in export volumes. Trump has also flagged tariffs on imports from France in response to the nation’s digital services tax.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Climate plan no barrier to trade deal

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Original article by Ben Packham
The Australian – Page: 4 : 4-Dec-19

Trade Minister Simon Birmingham says the federal government will seek a free-trade agreement with the European Union that is in Australia’s best interests overall. The EU’s ambassador to Australia, Michael Pulch, has indicated that Australia’s climate change policies will not affect negotiations for a free-trade deal. Paris Agreement signatories will review their carbon emissions reduction commitments in 2023, and Pulch hopes Australia will use this opportunity to increase its reduction targets.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Low interest rates aren’t enough to boost wages growth: Economists

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Original article by Euan Black
The New Daily – Page: Online : 4-Dec-19

With official interest rates left unchanged at 0.75 per cent on 3 December, some economists contend that further rate cuts are necessary for the Reserve Bank to deliver on its employment and inflation targets. However, others argue that interest rates are already so low that further cuts will not do not much to stimulate the economy. Instead, they contend that wage increases are needed, and this in turn requires measures to boost labour productivity. Growth in productivity has averaged 1.1 per cent annually over the last five years, and Treasurer Josh Frydenberg has estimated that lifting it to 1.5 per cent would boost incomes by $3,000 a year.

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