O75 Public Administration

Company tax cuts ‘make bracket creep inevitable’

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Original article by David Uren
The Australian – Page: 1 & 4 : 20-Sep-16

The Australian Government is committed to limiting overall tax revenue to 23.9 per cent of GDP. Its plan to progressively reduce the company tax rate over 10 years is intended to have no impact on overall tax revenue. As a result, the lower company tax revenue will have to be offset by higher revenue from other taxes. The Grattan Institute warns that this most likely will mean an increase in income tax revenue, which CEO John Daley notes is the only source of tax revenue that increases as a percentage of GDP.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, GRATTAN INSTITUTE, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN LABOR PARTY

Record $9.7b port sale rides boom

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Original article by Patrick Durkin, Jenny Wiggins, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 26 : 20-Sep-16

The Victorian Government had expected to gain between $A5bn and $A7bn from the privatisation of the Port of Melbourne. The $A9.7bn deal with the Lonsdale Consortium reflects an EBITDA multiple of 25 times earnings, while the State Government will also receive a payment of $A1.45bn from its federal counterpart under the asset-recycling scheme. Proceeds of the sale of the port’s 50-year lease will be reinvested in road and rail infrastructure, including the Government’s level crossing removal program.

CORPORATES
PORT OF MELBOURNE, LONSDALE CONSORTIUM, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, QIC LIMITED, GLOBAL INFRASTRUCTURE PARTNERS, ONTARIO MUNICIPAL EMPLOYEES RETIREMENT BOARD, VICTORIA. DEPT OF TREASURY AND FINANCE, PORT BOTANY, PORT KEMBLA, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, IFM INVESTORS PTY LTD, GIP AUSTRALIA

Timing of bank inquiry will limit scrutiny: ALP

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Original article by Primrose Riordan
The Australian Financial Review – Page: 7 : 19-Sep-16

The Opposition has questioned the timing of a scheduled appearance by the "big four" bank CEOs before a parliamentary committee. They will front the inquiry in early October 2016, which coincides with both school holidays and a non-sitting week for Parliament. The Australian Labor Party also notes that it also covers the so-called "blackout period" for some of the banks, which will restrict the amount of information the CEOs can publicly disclose prior to the release of their financial results.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

ANZ-Roy Morgan New Zealand Consumer Confidence – Blooming Marvellous – up 3.3pts to 121.0

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Sep-16

The ANZ-Roy Morgan New Zealand Consumer Confidence Index has risen from 117.7 to 121.0 in September 2016. Our seasonally adjusted estimate also showed a rise of three points, lifting from 122 to 125, which is the fourth consecutive increase and the highest reading since January. A net 31 per cent of New Zealanders expect to be better off financially in 12 months’ time, an increase of six points. Net optimism regarding the short-term economic outlook lifted from +5 to +12. Confidence regarding the long-term economic outlook increased from +10 to +14.

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

PM to push US over TPP

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 19-Sep-16

Australian Prime Minister Malcolm Turnbull will address the United Nations General Assembly in New York on 22 September 2016. He will also use the trip to seek US support for the Trans-Pacific Partnership trade deal, and he is hopeful that it can be ratified by the US before the new president takes office in January 2017. The TPP is opposed by both presidential candidates, Donald Trump and Hillary Clinton. Turnbull has stressed the "strategic importance" of the TPP in the South-east Asia region.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED NATIONS. GENERAL ASSEMBLY, TRANS-PACIFIC PARTNERSHIP, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES), ASSOCIATION OF SOUTH-EAST ASIAN NATIONS, UNITED STATES. DEPT OF DEFENSE

Foreign cap on Qantas needs axing: Joyce

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Original article by Mitchell Bingemann
The Australian – Page: 29 : 16-Sep-16

Qantas CEO Alan Joyce says the airline is being disadvantaged by ownership restrictions because they prevent it from participating in global consolidation in the sector. He has called on the Federal Government to make changes to the Qantas Sale Act. Peter Harbison, the executive chairman of CAPA-Centre for Aviation, says restrictions on foreign ownership amount to protectionism.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, CAPA – CENTRE FOR AVIATION

Bank chiefs to face three-hour grilling

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Original article by Fleur Anderson
The Australian Financial Review – Page: 3 : 16-Sep-16

The CEOs of Australia’s "big four" banks will front a parliamentary committee over three days in October 2016. Each CEO is slated to appear before the inquiry for three hours, under the Federal Government’s new policy of requiring banking industry leaders to front up to parliament once a year. However, the Opposition has criticised the timing of the CEOs’ parliamentary testimony, given that it will be during school holidays and in a week when parliament is not sitting.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, RESERVE BANK OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY

Super done, next task is growth

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 16-Sep-16

Federal Treasurer Scott Morrison will use a speech on 16 September 2016 to call for structural economic reforms. He will argue that action is needed to boost the earnings of the nation, individuals and businesses, citing the environment of low inflation, interest rates, wages growth and economic growth. Meanwhile, Morrison has urged the Opposition to support superannuation reforms after the Coalition agreed to abandon its proposed lifetime cap on non-concessional contributions. This had been a key sticking point for the Australian Labor Party.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA

Australian real unemployment virtually unchanged at 10.4% (down 0.1%) in August and under-employment drops to 7.1% (down 1.9%)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 15-Sep-16

Australian real unemployment was virtually unchanged at 10.4 per cent (down 0.1 per cent) in August 2016, nearly double the current ABS figure for July (5.7 per cent). However, this is a substantial increase in unemployment over the past year, with 1.332 million Australians (up 159,000 since August 2015) now unemployed. The Australian workforce has increased to 12,855,000 (up 104,000 since August 2015) over the last year, although total employment actually decreased to 11,523,000 (down 55,000). Meanwhile, a total of 2.249 million Australians, or 17.5 per cent of the workforce (the lowest since October 2015), were either unemployed or under-employed in August. This is up 132,000 from August 2015 (an increase of 0.9 per cent).

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS

Company tax cuts to be scaled back

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Original article by David Crowe
The Australian – Page: 1 & 2 : 15-Sep-16

The Australian Government plans to introduce legislation in the lower house to implement its full 10-year plan to reduce the company tax rate for all businesses. However, it is preparing to prioritise tax cuts for small businesses when the legislation is debated in the Senate, due to expectations that the full policy will be rejected by the upper house. The Government plans to reduce the tax rate for businesses with annual turnover of up to $A10m to 27.5 per cent, although the Opposition favours a turnover threshold of just $A2m.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, BUSINESS COUNCIL OF AUSTRALIA, NICK XENOPHON TEAM, ONE NATION PARTY