O75 Public Administration

Bank levy slammed as ‘hate tax’

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Original article by Phillip Coorey, James Frost
The Australian Financial Review – Page: 1 & 4 : 1-Jun-17

Australia’s banks have conceded that the Federal Goverment’s proposed levy is likely to proceed, but they have expressed concern about the "aggressive" stance of Treasurer Scott Morrison regarding the sector. Financial System Inquiry chair David Murray has described the levy as a "hate tax" which raises the question of whether the Government will target other sectors. Australian Foundation Investment Company MD Ross Barker has also expressed concern about the Government’s stance on the banks, given their importance to the economy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG

ANZ-Roy Morgan Australian Consumer Confidence Rating up for the second straight week to 112.2 (up 1.5%)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-May-17

ANZ-Roy Morgan Australian Consumer Confidence rose 1.5% to 112.2 in the week ended 28 May 2017, bringing the index back to levels before the Commonwealth Budget. The improvement in confidence was mixed – sentiment towards financial conditions deteriorated somewhat, while views around economic conditions rose solidly. Households’ expectations towards both current and future economic conditions bounced last week (3.5% and 4.6% respectively), after posting modest rises the previous week. Sentiment towards current economic conditions is at its highest value in seven weeks. Households’ views around current financial conditions were broadly flat (-0.1%). Meanwhile, views towards future conditions dropped 1.7%, offsetting the 1.5% rise in the previous week. Confidence in overall financial conditions has fallen sharply since the Commonwealth Budget, unwinding the modest recovery in April.

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

Trump to abandon climate deal

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Original article by
The Australian – Page: 8 : 29-May-17

US President Donald Trump has advised via Twitter that he will decide whether to commit to the Paris Agreement on climate change in the next week. However, some news agencies have reported that Trump has told several confidants that the US will withdraw from the agreement. Meanwhile, the Group of Seven summit meeting in Italy has issued a statement in which member nations agreed to combat protectionism and unfair trade practices. The G7 nations also condemned North Korea’s missile tests and warned that the outlook for the global economy remains uncertain.

CORPORATES
GROUP OF SEVEN (G-7), UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

ANZ-Roy Morgan Australian Consumer Confidence up 1.1pts to 110.5

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-May-17

ANZ-Roy Morgan Australian Consumer Confidence rose 1.0% to 110.5 in the week ended 21 May 2017, to remain somewhat below its long-term average. The improvement in confidence was broad-based, with four out of five indices rising. Households’ expectations towards both current and future economic conditions rose 0.9% and 0.6% respectively. Meanwhile, households’ views towards future financial conditions rose 1.5%.

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

Business Confidence was up in April before the Federal Budget

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 18-May-17

Business Confidence in Australia rose 2.8pts (+2.5%) to 116.6 in April 2017, according to the Roy Morgan Business Single Source survey. The rise in Business Confidence coincided with the All Ordinaries Index gaining 43.8pts (+0.7%) to 5,947.60 during the month and strong near-record monthly trade surpluses of over $A3bn in the months leading into April. The increase in Business Confidence came before last week’s Federal Budget, which appeared to have a negative impact on Consumer Confidence – the ANZ-Roy Morgan Consumer Confidence Rating fell 2.6% to 109.4 following the Budget. Business Confidence was boosted in April by improving sentiment about the year ahead. In April, 48.7% (up2.7ppts) of Australian businesses expected to be "better off" financially this time next year, while 19.7% (down 0.4ppts) expected to be "worse off". In addition, a majority of Australian businesses, 52.8% (up 2.7ppts), expected "good times" for the Australian economy over the next 12 months, while 40.0% (down 6.1ppts) expected "bad times" – a net positive gain of a significant 8.8ppts.

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ROY MORGAN RESEARCH LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Budget tax increases will always lead to a lower Consumer Confidence explains Gary Morgan, Executive Chairman, Roy Morgan Research

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Original article by Gary Morgan, Roy Morgan Research
Market Research Update – Page: Online : 17-May-17

This week’s drop in Consumer Confidence follows the Federal Budget considered by many conservatives to be "Labor-lite" and considered by those on the left to be unfair on low income earners. The Turnbull Government chose to increase taxes on consumers – by increasing the Medicare levy – rather than cutting spending; and to increase taxes on Australia’s largest banks, which could lower their share prices and lead to the banks increasing interest rates on the loans they provide to consumers and businesses alike. The budget was followed by decreases in four out of the five indices that comprise Consumer Confidence. Household financial expectations compared to a year ago dropped a net 3.2ppts, expectations for the Australian economy over the next year dropped by a net 3.9ppts and expectations for the Australian economy over the next five years dropped a net 5.5ppts. The only increase recorded was in the number of people saying now is a good time to buy.

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

ANZ-Roy Morgan Consumer Confidence resumes its downward trend – down 2.6% to 109.4

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

The latest headline ANZ-Roy Morgan Australian Consumer Confidence index dropped sharply, falling 2.6% this week. The index now sits at 109.4 – the lowest level since September 2015. The four week moving average continued to trend lower, and is now 1.6% below its long run average. Four of the five indices registered sharp declines. Households’ expectations towards their long term economic conditions posted the sharpest fall, down 5.5% over the week. This offset the previous two consecutive weekly gains. Views about current economic conditions fell by 3.9%, but remain slightly above April’s low.

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

Labor push for 49.5pc top tax hit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 12-May-17

Federal Opposition Leader Bill Shorten has used his Budget reply speech to outline measures to provide funding for the National Disability Insurance Scheme. He advocated retention of the two per cent temporary deficit levy for high-income earners and increasing the Medicare levy by 0.5 per cent for people on incomes of more than $A87,000. This would increase the highest marginal tax rate to 49.5 per cent. Shorten also said the Opposition supports a proposed bank levy, although he stressed that the cost should not be passed on to customers.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, DELOITTE ACCESS ECONOMICS PTY LTD

Good timing, as Morrison tips tax cuts in 2018

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Original article by Jacob Greber, Laura Tingle
The Australian Financial Review – Page: 9 : 11-May-17

The Australian Government aims to limit the nation’s tax-to-GDP ratio to 23.9 per cent. This cap is expected to be reached in 2022-23, although this could occur earlier due to factors such as income tax "bracket creep". Treasurer Scott Morrison has conceded that the Government may have to take action to avert this before 2022-23. He has flagged the possibility of personal income tax cuts in 2018, prior to the next federal election. The tax-to-GDP ratio is projected to be 21.5 per cent in 2016-17.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Bitter war on banks escalates

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Original article by Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 8 : 11-May-17

Federal Treasurer Scott Morrison says Australia’s five largest banks should avoid passing the cost of a proposed $A6.2bn Budget repair levy on to customers, warning that it would make them even less popular. Morrison has also advised that the levy will not be abolished once the Budget returns to surplus, although Australian Bankers’ Association CEO Anna Bligh has called for it to be scrapped once the deficit is eliminated. Meanwhile, shadow treasurer Chris Bowen says a royal commission into the bank is still needed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, LIBERAL PARTY OF AUSTRALIA