O75 Public Administration

Inflation Expectations down to 3.8% in June as RBA cuts rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 11-Jul-19

Australians aged +14 expect inflation of 3.8% per year over the next two years, according to the Roy Morgan Inflation Expectations Index for June 2019. This is down 0.3% on May and down 0.7% on June 2018. Inflation Expectations have decreased around Australia in June, and are down compared to a year ago, led by declines for both employed and unemployed Australians as well as across different occupations and employment categories. Analysis by voting intentions shows that Inflation Expectations for L-NP supporters fell 0.1% to 3.3% in June, while Inflation Expectations for ALP supporters dropped by 0.3% to 3.7%. Inflation Expectations for Greens supporters were unchanged at 3.6%. June Inflation Expectations are based on personally interviewing a nationwide representative sample of 3,984 Australians aged 14+ face-to -face in their own homes.

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

Retailers hope tax-cut cheques will fuel spending spree

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Original article by Rosie Lewis, Eli Greenblat
The Australian – Page: 2 : 11-Jul-19

More than 970,000 people have lodged their annual tax return with the Australian Taxation Office since 1 July. Retailers are optimistic that the federal government’s tax cuts will have a similar stimulatory effect on the sector as the one-off payment made by Labor in 2009. Russell Zimmerman of the Australian Retailers Association says the tax cuts will allow struggling consumers to buy items such as new electrical appliances and clothing.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN RETAILERS ASSOCIATION, NATIONAL RETAIL ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, CITIGROUP PTY LTD

Labor urged to speed up dud policy review

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Original article by Greg Brown, Rachel Baxendale
The Australian – Page: 2 : 11-Jul-19

Labor has come under scrutiny for delaying a decision on key policies – including changes to the negative gearing and franking credits regimes – until a review of its 2019 federal election campaign is completed. Property Council of Australia CEO Ken Morrison argues that Labor should ditch these policies, as voters have rejected them at two elections. Wilson Asset Management chairman Geoff Wilson says the franking credits policy is flawed and inequitable, and was a key factor in Labor’s election defeat.

CORPORATES
AUSTRALIAN LABOR PARTY, PROPERTY COUNCIL OF AUSTRALIA LIMITED, WILSON ASSET MANAGEMENT, AUSTRALIA. DEPT OF THE TREASURY

Data retention compliance costs snowball past $200m

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Original article by Lilly Vitorovich
The Australian – Page: 4 : 10-Jul-19

The Australian Communications & Media Authority has told a parliamentary committee that the cost of complying with the nation’s data retention laws was $35.3m in 2018-19. This compares with $119.8m in the previous financial year, and $211.5m in total since the laws were introduced in 2015. The data retention laws are being reviewed by the Parliamentary Joint Committee on Intelligence & Security.

CORPORATES
AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY, AUSTRALIA. PARLIAMENTARY JOINT COMMITTEE ON INTELLIGENCE AND SECURITY, AUSTRALIAN FEDERAL POLICE, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN BROADCASTING CORPORATION, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, TPG TELECOM LIMITED – ASX TPM

It’s not time: Albo hastens slowly on ditching policies

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Original article by Greg Brown, Joe Kelly
The Australian – Page: 1 & 6 : 10-Jul-19

Labor will not decide whether to abandon policies that contributed to its federal election loss until a review of its election campaign is completed in October. Labor’s proposed changes to the negative gearing and franking credits regimes are amongst those that are likely to be reconsidered. A number of Labor MPs believe that the party’s review of its policy platform should not be rushed.

CORPORATES
AUSTRALIAN LABOR PARTY

Signs that wage rise pick-up is under way

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Original article by Matthew Cranston, David Marin-Guzman
The Australian Financial Review – Page: 1 & 4 : 10-Jul-19

A number of large Australian companies have struck new enterprise agreements which include pay rises that are higher than the current level of wage growth. Some employers in sectors such as retailing and fast food are seeking to increase wages in line with the latest increase in the minimum wage. Meanwhile, Andrew Hanson of recruitment firm Robert Walters says the outlook for the economy and business conditions during the first half of 2019-20 means that more highly-skilled employees are unlikely to receive a significant pay rise.

CORPORATES
ROBERT WALTERS PTY LTD, McDONALD’S AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HUNGRY JACK’S PTY LTD, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, SUPER RETAIL GROUP LIMITED – ASX SUL, BWS – BEER WINE SPIRITS, AUSTRALIA. FAIR WORK COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNIVERSITY OF MELBOURNE, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, JP MORGAN AUSTRALIA LIMITED

Target surplus, but keep on spending

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Original article by Rosie Lewis
The Australian – Page: 6 : 10-Jul-19

Australian Industry Group CEO Innes Willox says there is scope for the federal government to pursue stimulus measures in addition to its income tax cuts package. He says that although returning the Budget to surplus should remain a priority, there should also be increased government spending in areas that will generate economic growth. Treasury Josh Frydenberg is confident that the economy will be boosted by factors such as the tax cuts, monetary policy easing and the Coalition’s infrastructure spending program.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN RESOURCES AND ENERGY GROUP, AUSTRALIAN LABOR PARTY

ANZ-Roy Morgan Consumer Confidence consolidates to 117.6

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Original article by Roy Morgan
Market Research Update – Page: Online : 10-Jul-19

ANZ-Roy Morgan Australian Consumer Confidence fell 1.1% to 117.6 in the week ended 7 July, following the prior week’s 4% gain. Households’ views towards current financial conditions rose 3.7%, while views towards future financial conditions gained 1.3%. However, consumers’ views toward current economic conditions fell 3.6% and views toward future economic conditions fell 1.7%. The ‘time to buy a household item’ index was down 4.6%, and the four-week moving average for inflation expectations was up 0.1ppt to 4%.

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

Lower wholesale power prices a pipe dream

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Original article by Mark Ludlow
The Australian Financial Review – Page: 6 : 9-Jul-19

Energy Users Association of Australia CEO Andrew Richards has questioned whether the federal government can deliver on its promise to reduce wholesale electricity prices to $70 per megawatt-hour by 2021. The wholesale price of electricity is currently around $95 per megawatt hour, and Richards says it is unlikely to fall much below $80. He adds that the federal government’s intervention in the energy market has also "spooked" some investors.

CORPORATES
ENERGY USERS ASSOCIATION OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ENERGYAUSTRALIA PTY LTD, GRATTAN INSTITUTE, AUSTRALIAN ENERGY COUNCIL

Pensioners face delay in deeming rate relief until late September

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 9-Jul-19

The federal government has not adjusted the pension ‘deeming’ rate since March 2015, despite a sharp fall in in interest rates since then. The expenditure review committee will shortly consider reducing the deeming rate, although no action may be possible until the government undertakes its bi-annual review of pension payments on 20 September. Ian Henschke of National Seniors Australia believes that the government is able to review the deeming rate at any time, although Council on the Ageing CEO Ian Yates says the Department of Human Services’ outdated computer systems means that an immediate reduction in the deeming rate may not be possible.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, COUNCIL ON THE AGEING, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY