O75 Public Administration

Australian wealth growing faster than debt

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Original article by Roy Morgan
Market Research Update – Page: Online : 24-Sep-18

The first Roy Morgan Wealth Report shows that the value of assets held by Australians continues to grow faster than debts, resulting in average per capita net wealth being 30.5% higher in 2017 than it was in 2007 in inflation-adjusted terms. The report shows that average personal assets are now worth 7.9 times average debts, compared with 7.2 times debts in 2007, while 51.9% of Australia’s personal wealth is held in the form of housing, down from 52.4% in 2007. Superannuation assets now make up a slightly higher portion of personal wealth, rising from 19.6% to 21.8% since 2007. The report is drawn from over half a million in depth face-to-face interviews conducted over the last decade.

CORPORATES
ROY MORGAN LIMITED

Wealth inequality in Australia is getting worse

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Original article by Roy Morgan
Market Research Update – Page: Online : 24-Sep-18

The first edition of the Roy Morgan Wealth Report shows that net wealth has grown strongly in Australia, but the biggest gains have been among the wealthiest 10% of Australians. They had an average per capita wealth of over $2 million and held 48.3% of net wealth in 2017, compared to 46.8% in 2007. Meanwhile, the poorest 50% of Australians have seen their total share of net wealth fall from 3.9% to 3.7% over the last decade. The report also shows that growing personal wealth is highly correlated to income level, with those earning over $130,000 having an average net wealth of $1.2 million, which is nearly five times those earning less than $15,000 ($248,000). The report is based on over half a million in depth face-to-face interviews conducted over the decade from 2007 to 2017 across Australia.

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ROY MORGAN LIMITED

Inflation Expectations for employed Australians lower than a year ago

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Original article by Roy Morgan
Market Research Update – Page: Online : 24-Aug-18

Australians aged +14 expect inflation of 4.3% per year over the next two years, according to the Roy Morgan Inflation Expectations Index for August 2018. This is unchanged on a month ago, but down 0.2% from August 2017. Inflation Expectations have now tracked in a narrow range between 4.3-4.5% for 14 straight months. Inflation Expectations remain well below the eight-year average of 5.0%. Analysis by employment status shows that Inflation Expectations for employed Australians dropped to 3.9% in August 2018, down 0.4% on a year ago. In comparison, Australians who are not employed – including retirees, students, those on home duties, those choosing to not work and the unemployed – increased by 0.1% to 4.9%. August Inflation Expectations are based on a nationwide face-to-face survey of 4,385 Australians aged 14+.

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ROY MORGAN LIMITED

Schools row ends with $4.5bn deal

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 21-Sep-18

The federal government has agreed to increase taxpayer funding for Catholic and independent schools by more than $4.5bn, after funding was reduced under the "Gonski 2.0" school funding reforms. Catholic schools will receive a $4.3bn increase in funding over 10 years, while independent schools will receive an additional $259m. Stephen Elder, the executive director of the Catholic Education Commission of Victoria, says the funding cuts under the Gonski 2.0 reforms would have forced Catholic schools to close or significantly increase their fees.

CORPORATES
CATHOLIC EDUCATION COMMISSION OF VICTORIA LIMITED, AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, INDEPENDENT SCHOOLS COUNCIL OF AUSTRALIA

PM ups the ante on small biz tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 21-Sep-18

Federal government sources have indicated that the Coalition is likely to seek to pass legislation prior to the next election aimed at bringing forward tax cuts for businesses with turnover of up to $50m. The tax relief for small businesses has already been legislated, but additional legislation would be required for the cuts to take effect earlier than 2026-27. Labor opposes a further reduction in the small business tax rate, but it could face the prospect of having to go into the election with a policy of reversing the additional tax cuts.

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

Trade war risk to our currency safety valve

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Original article by Sarah Turner
The Australian Financial Review – Page: 13 : 21-Sep-18

Economic modelling undertaken by the Reserve Bank in March concluded that the Australian dollar could potentially rise by up to six per cent in the event of a global trade war. This in turn could cause the domestic economy to contract by up to 3.5 per cent over five years. This is one of three potential scenarios that were examined by the central bank at the time, in response to the Trump administration’s decision to impose tariffs on imported steel and aluminium.

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RESERVE BANK OF AUSTRALIA

Trade war pain will be felt globally: OECD

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Original article by Jacob Greber, Patrick Durkin
The Australian Financial Review – Page: 15 : 21-Sep-18

A report from the OECD has warned that the US-China trade war could undermine global economic growth. The interim economic outlook report notes that the tariff war has already had an impact on the global trade growth rate, which slowed significantly during the first half of 2018. The OECD says global investment, jobs and living standards will be adversely affected if the trade war escalates. It also expects the US to record GDP growth of 2.9 per cent year-on-year in 2018, while it still expects growth of 6.7 per cent in China. Australia’s GDP growth rate is forecast to be 2.9 per cent in 2018 and three per cent in 2019.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STATE STREET GLOBAL ADVISORS LIMITED, L1 CAPITAL PTY LTD

Taylor-made package to prolong coal power

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Original article by Samantha Hutchinson
The Australian – Page: 5 : 20-Sep-18

Sources have indicated that the federal government’s new energy policy may include assistance for companies to upgrade existing coal-fired power stations. Energy Minister Angus Taylor has stressed that ensuring the reliability of Australia’s baseload power supply is the government’s key priority. This could potentially include measures aimed at extending the operating lives of existing coal-fired plants or investing in new ones.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AGL ENERGY LIMITED – ASX AGL

Fruit crisis: PM gets tough with 15 years’ prison

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Original article by Richard Ferguson, Greg Brown
The Australian – Page: 7 : 20-Sep-18

The federal government wants to increase the maximum penalty for contaminating food with the intent of causing injury from 10 years to 15 in response to the crisis affecting the nation’s strawberry industry. The Australian Federal Police and the Australian Border Force are working with state police forces to investigate the growing number of reports of fruit tampering, although some are believed to be hoaxes. In addition to strawberries, there have been reports that sewing needles have been found in apples and bananas. Opposition Leader Bill Shorten has indicated that Labor will support the proposed reforms.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN FEDERAL POLICE, AUSTRALIAN BORDER FORCE, AUSTRALIA. DEPT OF HOME AFFAIRS, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW

Gig workers oppose Labor’s job proposals

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 20-Sep-18

A Senate committee has released a report which has recommended greater regulation of the gig economy in order to protect workers in the sector. Amongst other things, the inquiry into the future of work has recommended broadening the definition of an employee to include workers in the gig economy, who are generally regarded as independent contractors. However, some people who work as ride-sharing drivers say the flexibility of their working hours is a key attraction and they will quit the sector if there is any change to their employment status.

CORPORATES
AUSTRALIAN LABOR PARTY, UBER AUSTRALIA PTY LTD, TAXIFY, RIDE SHARE DRIVERS ASSOCIATION OF AUSTRALIA