O75 Public Administration

Business Confidence up slightly in March at 106.7 (pre-Budget)

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Apr-19

In Australia, Business Confidence rose 1.1pts to 106.7 in March 2019, according to the latest Roy Morgan Business Single Source survey. Business Confidence is now 8.7pts below its level of March 2018 and 9.1pts below its long-term average of 115.8. In addition, the average Business Confidence during the March quarter of only 106.1 is the weakest start to a year in the history of the Index. Now 49.6% (down 1.1ppts) of businesses expect the business to be ‘better off’ financially this time next year, while just 24% (up 0.2ppts) expect the business to be ‘worse off’ financially. Meanwhile, 45.6% (up 4.9ppts) of businesses expect the Australian economy to have ‘good times’ over the next year, while 48.6% (down 4.6ppts) expect the economy to have ‘bad times’. Roy Morgan CEO Michele Levine says April and May are set to be dominated by the looming Federal Election, and the continuing political uncertainty is likely to prevent any significant moves either up or down for Business Confidence.

CORPORATES
ROY MORGAN LIMITED

Nurses taxed $2000 more under Labor

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 6 : 8-Apr-19

Taxation is set to be a key issue during the upcoming federal election, with Prime Minister Scott Morrison stating that the Coalition will drive economic growth via lower taxes. Labor in turn has criticised the Coalition’s income tax package, arguing amongst other things that it favours people on high incomes and it will not be fully implemented until 2024. Meanwhile, analysis suggests that the average full-time worker who is earning $100,000 a year in 2024 would be more than $2,000 a year worse off under Labor’s tax policy.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Per capita health spend is falling, says academic

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Original article by Andrew Tillett
The Australian Financial Review – Page: 6 : 5-Apr-19

Analysis of the April 2019 Budget papers by the Centre for the Health Economy shows that the federal government’s per capita spending on healthcare will rise by just 1.5 per cent in 2019-20. This compares with growth of 6.7 per cent in 2016-17. Per capita spending will grow by just 0.4 per cent between 2019-20 and 2022-23 when population growth is taken into account. Centre for the Health Economy director Henry Cutler adds that ending the freeze on Medicare rebates may not result in lower co-payments for visiting a GP.

CORPORATES
MACQUARIE UNIVERSITY. CENTRE FOR THE HEALTH ECONOMY, AUSTRALIA. DEPT OF HEALTH

Minimum wage is living wage by UK standard

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Original article by David A Harvey
The Australian Financial Review – Page: 7 : 5-Apr-19

The federal government has used its submission to the Fair Work Commission to argue that the minimum wage is now about 61 per cent of the median wage when the earnings of both full-time and part-time employees are taken into account. This is the benchmark used in the UK to determine that country’s living wage. In contrast, the ACTU wants a living wage to be based on the median earnings of full-time workers. The ACTU is seeking a six per cent increase in the minimum wage in 2018 and a further rise of 5.5 per cent in 2020.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, ACTU, AUSTRALIAN LABOR PARTY, GREAT BRITAIN. LOW PAY COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Workers warned over approval to protest

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Original article by Ewin Hannan
The Australian – Page: 8 : 5-Apr-19

ACTU secretary Sally McManus claims that nationwide rallies to be held on 10 April are political protests rather than industrial action. The ACTU hopes the anti-Coalition rallies will attract 250,000 workers. Meanwhile, the Australian Building & Construction Commission has warned that building industry workers risk fines if they take time off work to attend the rallies without written permission from their employer.

CORPORATES
ACTU, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, ONESTEEL LIMITED, FEDERAL COURT OF AUSTRALIA

Tax cuts will cost less because of productivity lift

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 5-Apr-19

John Humphreys of the Centre for Independent Studies says a key measure in the federal government’s April 2019 Budget will have limited net economic benefit. He argues that the proposed increase in the low and middle-income tax offset is unlikely to have much impact on productivity, output or economic growth. His analyses also suggests that the government’s tax cuts package will cost about $122bn over 10 years, compared with Treasury’s forecast of $158bn, as a lower marginal tax rate will encourage people to increase their taxable income.

CORPORATES
THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF QUEENSLAND

EV rollout threat to power grid

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Original article by Ben Packham
The Australian – Page: 4 : 5-Apr-19

Energy Networks Australia has used a submission to a Senate inquiry to warn that the nation’s electricity grid may not be equipped to cope with the growing use of electric vehicles. The peak energy network body argued that incentives will be necessary to encourage consumers to recharge their electric cars during off-peak periods. Labor recently announced that it will require electric vehicles to account for 50 per cent of new car sales by 2030 if it wins the upcoming federal election.

CORPORATES
ENERGY NETWORKS AUSTRALIA, AUSTRALIAN LABOR PARTY, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF THE TREASURY

Shorten outbids on tax, health

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Apr-19

Opposition Leader Bill Shorten has used his Budget reply speech to advise that Labor will not support the second and third stages of the federal government’s income tax package. However, Labor will increase the low- and middle-income tax offset for people earning less than $37,000 year, while it will match the government’s rebate for those earning $48,000 to $90,000. Meanwhile, Labor will increase Medicare funding by $2.3bn over four years, in order to reduce the cost of cancer treatment and to list more cancer drugs on the Pharmaceutical Benefits Scheme

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

Record trade surplus of $4.8b thanks to iron ore

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Original article by Matthew Cranston
The Australian Financial Review – Page: 5 : 4-Apr-19

New figures show that Australia’s trade surplus rose to a record $4.8bn in February, well ahead of analysts’ expectations of just $3.7bn. The result was boosted by an 11 per cent increase in the value of iron ore exports. Gareth Aird of the Commonwealth Bank expects commodity prices to rise further, and that the forecasts outlined in the April 2019 Budget will prove to be too conservative. Meanwhile, services exports rose by two per cent in February, while there was a one per cent decline in rural exports.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

Lack of company tax cut biggest gripe

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Original article by Ben Butler, Joyce Moullakis, Damon Kitney
The Australian – Page: 24 : 4-Apr-19

Business Council of Australia CEO Jennifer Westacott has reiterated the need for corporate tax cuts in the wake of the April 2019 Budget. She has described Australia’s current two-tiered company tax system as "bizarre", and notes that other nations are reducing their corporate tax rate while Australia’s remains one of the world’s highest. Meanwhile, the Australian Retailers Association’s executive director Russell Zimmerman says consumer spending should receive an immediate boost from the federal government’s proposed increase in the low- and middle-income tax offset.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN RETAILERS ASSOCIATION, AUSTRALIAN BANKING ASSOCIATION, THE AUSTRALIAN INDUSTRY GROUP, SUNCORP GROUP LIMITED – ASX SUN, MYOB GROUP LIMITED – ASX MYO, MORTGAGE CHOICE LIMITED – ASX MOC, STOCKLAND – ASX SGP