O75 Public Administration

Big super ready to fund infrastructure

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 9-Jul-19

IFM Investors CEO Brett Himbury has argued the case for industry superannuation funds to invest in public infrastructure, saying they are prepared to buy into both new and existing assets. Himbury concedes that there is still some concern about the partial sale of public assets; however, he stresses that unlike some private investors, super funds are focused on long-term returns rather than short-term profits. Former ACTU secretary Bill Kelty has proposed the creation of a new government-backed asset class that is focused on infrastructure.

CORPORATES
IFM INVESTORS PTY LTD, ACTU, INFRADEBT PTY LTD

Labor review may jettison 2pc tax slug

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

A spokesperson for Opposition Leader Anthony Albanese has stressed that Labor has not yet formally dropped its proposed changes to the negative gearing and franking credits regimes, after Albanese gave indications that they will be dumped. Labor intends to review all of its policies in the wake of the federal election loss; some Labor MPs have suggested that increasing the highest marginal income tax rate to 49 per cent by reinstating the budget repair levy is among the policies that may be dropped. Several Labor MPs also say there may be merit in Bill Kelty’s proposal to reduce the top income tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Stick to surplus to keep AAA

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 9-Jul-19

S&P Global Ratings upgraded Australia’s credit rating outlook to ‘stable’ in September 2018. S&P’s Anthony Walker says the federal government must retain its target of returning the Budget to surplus in 2019-20 in order to retain its triple-A credit rating. He has stressed the need for the government to have a strong public balance sheet so it can respond with fiscal stimulus if there is an external shock to the economy in the future. Martin Petch of Moody’s Investors Service in turn says the Australian economy will be boosted by factors such as the government’s income tax cuts, official interest rate cuts and spending on infrastructure.

CORPORATES
S&P GLOBAL RATINGS, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD

Australia set to emit 13pc of all carbon

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Original article by James Fernyhough
The Australian Financial Review – Page: 17 : 8-Jul-19

A report commissioned by the Australian Conservation Foundation contends that the nation will be responsible for up to 13 per cent of the world’s carbon dioxide emissions by 2030. Prepared by German think tank Climate Analytics, the report takes into account emissions from Australian fossil fuel exports that are burnt in other countries. The Minerals Council of Australia estimated in 2018 that demand for imported thermal coal in Asia could rise by up to 400 million tonnes by 2030, while Gavan McFadzean from the ACF rejects the suggestion that Australia should not be responsible for what other countries do with its fossil fuels.

CORPORATES
AUSTRALIAN CONSERVATION FOUNDATION INCORPORATED, CLIMATE ANALYTICS, MINERALS COUNCIL OF AUSTRALIA

Labor’s deeming rate reduction predicted to cost $1b

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Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 8-Jul-19

Treasurer Josh Frydenberg says the federal government will change the deeming rate for pensioners by the end of 2019, and that over 25 per cent of pension recipients will be better off as a result. Shadow social services minister Linda Burney says a change in the deeming rate is urgently needed, and that cutting it by 1.25 per cent would see pensioners $3,875 a year better off. The deeming rate has not been changed since 2015, while cutting it by 1.25 per cent would reduce the Budget bottom line of at least $1 billion.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Kelty: cut the top tax rate

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 1 & 8 : 8-Jul-19

Former ACTU secretary Bill Kelty warns that Australia’s income tax system will remain uncompetitive unless there is broader reform than the federal government’s tax cuts package. Kelty argues that any reforms to the tax system should be in response to the demands of the future, negating Labor’s view that the stage-three tax cuts should have been put on hold due to uncertainty about the economic outlook in five years’ time, when they are slated to take effect. Kelty also says Australia’s top marginal income tax rate is too high, and changes to the enterprise bargaining system are needed.

CORPORATES
ACTU, AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

RBA, tax cuts are more than enough boost

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Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 8-Jul-19

Stephen Koukoulas of Market Economics and Andrew Charlton from Alphabeta say that further fiscal stimulus is not needed at present to boost the Australian economy. They argue that the federal government’s income tax cuts, the Reserve Bank’s latest official interest rate reduction and an easing of credit restrictions should be sufficient, and in fact may provide a greater economic boost than many observers anticipate. They add that too much fiscal stimulus could put a return to a Budget surplus at risk.

CORPORATES
MARKET ECONOMICS PTY LTD, ALPHABETA, RESERVE BANK OF AUSTRALIA

IR reform urgent for economy

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Original article by Rosie Lewis
The Australian – Page: 1 & 4 : 8-Jul-19

Business leaders have identified changes to the industrial relations system as a priority for the federal government following the passage of its income tax cuts package. Australian Industry Group CEO Innes Willox and Australian Resources & Energy Group CEO Steve Knott say the reform agenda should include changes to the ‘better off overall test’ for enterprise agreements, passing the Ensuring Integrity Bill and Proper Use of Worker Benefits Bill, and a review of unfair dismissal and adverse action laws. They argue that major changes to the Fair Work Act are not necessary.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN RESOURCES AND ENERGY GROUP, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIAN LABOR PARTY, ACTU, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. FAIR WORK COMMISSION

Tax office wins fight over GST on scrap gold

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Original article by Nick Evans
The Australian – Page: 23 : 5-Jul-19

The Australian Taxation Office has secured an important legal victory in its ongoing battle to withhold tax credits that were allegedly wrongfully claimed under a GST gold swindle. Deputy commissioner Jeremy Geale says the significance of its latest win in the Administrative Appeals Tribunal is that it was against a gold refiner, whereas the previous wins have been against gold dealers or scrap merchants. It is claimed that the swindle has cost federal Treasury over $1 billion.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, AUSTRALIA. DEPT OF THE TREASURY

Setka in court bid to block ALP’s axe

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Original article by Tessa Akerman
The Australian – Page: 5 : 5-Jul-19

Construction, Forestry, Maritime, Mining & Energy Union official John Setka is seeking an injunction against Labor’s national executive, which wants to expel him from the party. Labor leader Anthony Albanese claims that Setka’s conduct in recent years has been unacceptable, and he must be expelled to prevent further damage to the party’s reputation. Setka in turn alleges that being expelled from Labor would damage his own reputation and could result in the loss of his position as Victorian secretary of the CFMMEU.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, SUPREME COURT OF VICTORIA