O75 Public Administration

States climb $180bn debt mountain

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Original article by Michael Roddan
The Australian – Page: 1 & 6 : 19-Jun-19

The combined net debt of Australia’s state and territory governments is set to exceed $184bn over the next four years, compared with just $81bn in 2018-19. Increased investment in infrastructure will be a key contributor to the debt blowout, and Robert Carling of the Centre for Independent Studies stresses the need for such projects to be subject to a cost-benefit analysis. He adds that New South Wales and Victoria could potentially be at risk of losing their AAA credit ratings if their net debt continues to rise, although he says this is unlikely in the near-term.

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THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIAN LABOR PARTY, MOODY’S INVESTORS SERVICE INCORPORATED, DELOITTE ACCESS ECONOMICS PTY LTD, NEW SOUTH WALES. THE TREASURY, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

Defector Bernardi may turn Lib again

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Original article by Richard Ferguson
The Australian – Page: 2 : 19-Jun-19

Senate crossbencher Cory Bernardi has signalled that he may consider rejoining the Liberal Party. Bernardi says he has not held any such talks with Prime Minister Scott Morrison, but he would be open to doing so. He adds that his main priority in the new parliament will be to support the Coalition’s legislative agenda. Eric Abetz and Dean Smith are among the Liberal senators who say Bernardi would be welcomed back into the Liberal fold. He resigned to form the Australian Conservatives party during the tenure of former prime minister Malcolm Turnbull.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN CONSERVATIVES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CENTRE ALLIANCE, ONE NATION PARTY

Labor flags opposing legislated tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 19-Jun-19

Tom Kennedy of JP Morgan estimates that the third stage of the federal government’s income tax cuts package would boost GDP by about 0.6 per cent from 2024. The stage three tax cuts are worth about $137bn in total, including $42bn worth of tax relief that has already been legislated. However, there is believed to be growing support within Labor to oppose the unlegislated component of the stage three tax cuts and to repeal the legislated component – which is slated to take effect in 2024-25 – if it wins the next election.

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AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, JP MORGAN AUSTRALIA LIMITED

ANZ-Roy Morgan Consumer Confidence slips to 114.2

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

ANZ-Roy Morgan Australian Consumer Confidence fell 0.3% to 114.2 in the week ended 16 June. Households’ views towards current financial conditions rose 3.9%, while views towards future financial conditions were up 0.2%. The rise has bought both indices back above their long-term averages. However, consumers’ views toward current economic conditions fell 2.3% and views toward future economic conditions were down 1.9%. The ‘time to buy a household item’ index fell 1.2%.

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

Tax cuts no handout to the rich

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Original article by Phillip Coorey, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 18-Jun-19

Finance Minister Mathias Cormann contends that the third stage of the federal government’s income tax package will merely address the issue of bracket creep, rather than benefiting people on high incomes. Analysis of the impact of the tax cuts supports his view; it suggests that high-income earners’ tax liability in 2024-25 will increase by roughly the same percentage as growth in their wages if the full tax package is passed. However, their tax liability would significantly exceed wages growth if the reforms do not proceed. The Coalition is likely to require the support of Senate crossbenchers to pass the tax bill.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Warning of reform or forgo $1.5 trillion windfall

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Original article by Sid Maher
The Australian – Page: 1 & 2 : 18-Jun-19

The 2019 Australian National Outlook report highlights the economic benefits from pursuing economic, social and environmental reform over coming decades, and the likely cost of failing to undertake reform. The two-year study concludes that a wide-ranging reform agenda could see the Australian economy grow to between $5.5trn and $5.6trn by 2060; conversely, the economy would grow to just $4.1trn without such reform. The report also warns that in a worst-case scenario, the digital divide could see the unemployment rate could peak at 20 per cent by 2040 and then average 10 per cent in future years.

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CSIRO, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

More unions demanding Setka’s head

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Original article by Ewin Hannan
The Australian – Page: 2 : 17-Jun-19

Twelve unions have now publicly backed the ACTU’s call for John Setka to quit as Victorian secretary of the Construction, Forestry, Maritime, Mining & Energy Union over harassment charges. They include the Australian Nursing & Midwifery Federation, the Australian Workers’ Union and the Independent Education Union. Federal Labor leader Anthony Albanese will seek to have Setka expelled from the party when its national executive meets on 5 July.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN NURSING AND MIDWIFERY FEDERATION, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, INDEPENDENT EDUCATION UNION, ACTU, AUSTRALIAN LABOR PARTY

Labor calls for more detail on tax cuts

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 17-Jun-19

Shadow treasurer Jim Chalmers will ask the federal government to disclose the costings for its three-stage income tax cuts package. In particular, Labor will seek details of how much of the third stage of the tax cuts will flow through to people on the highest incomes. Chalmers has written to Treasurer Josh Frydenberg, stating that while Labor is prepared to back the first stage of the tax package, it requires costings information in order to make a final decision on its support for the second and third stages.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, THE AUSTRALIA INSTITUTE LIMITED, GRATTAN INSTITUTE, AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR SOCIAL RESEARCH AND METHODS, CENTRE ALLIANCE, ONE NATION PARTY

Inflation Expectations rebound to 4.1% in May as L-NP re-elected

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Jun-19

Australians aged +14 expect inflation of 4.1% per year over the next two years, according to the Roy Morgan Inflation Expectations Index for May 2019. This is a significant rebound from the record low of 3.7% in April, and down 0.2% on May 2018. Despite the increase in May, Inflation Expectations have decreased around Australia compared to a year ago, although the decline has been concentrated in Capital Cities, with Inflation Expectations in Country Areas unchanged on a year ago. Analysis by voting intentions shows that Inflation Expectations for ALP supporters increased 0.2% to 4% in May, while Inflation Expectations for L-NP supporters were unchanged at 3.4%. Inflation Expectations for Greens supporters declined by 0.2%, to 3.6%. May Inflation Expectations are based on personally interviewing a nationwide sample of 4,011 Australians aged 14+ face-to -face in their own homes.

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

Rethink press inquiry and act, PM urged

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Original article by Greg Brown
The Australian – Page: 2 : 13-Jun-19

Communications Minister Paul Fletcher says the federal government has made no decision on a parliamentary inquiry into press freedom in the wake of the Australian Federal Police’s recent media raids. However, some Coalition MPS have expressed concern that the issue may become politicised if there is a parliamentary inquiry. Liberal MP Craig Kelly argues that a special inquiry into the actions of the AFP is not necessary as parliament has oversight of the law enforcement agency.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN FEDERAL POLICE, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN BROADCASTING CORPORATION, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS