O75 Public Administration

Tables turn: Now Labor promises to protect AAA rating

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 10-May-16

Shadow treasurer Chris Bowen will address the National Press Club on 10 May 2016, where he will deliver his reply to the Australian Government’s Budget. Bowen will indicate that if the Opposition wins the federal election it will release the mid-year budget update by October, rather than in December. He will stress the need to reduce the Budget deficit in order to ensure that Australia retains its coveted triple-A credit rating. He will also question the merits of the Government’s proposal to progressively reduce the corporate tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA

Australian April unemployment is 10.4% for third consecutive year. Under-employment steady at 7.7%

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-May-16

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate fell by 0.6 per cent to 10.4 per cent in April 2016. The number of people in the workforce has fallen by 134,000 to 12,810,000 (although up 183,000 since April 2015), and 11,476,00 Australians are employed (up 158,000 in the last 12 months). Meanwhile, the number of people who are under-employed has fallen by 149,000 in the last 12 months to 988,000 (7.7 per cent of the workforce). The official unemployment rate was 5.7 per cent in March 2016. Roy Morgan Research executive chairman Gary Morgan says the Reserve Bank’s decision to cut interest rates to a record low 1.75 per cent shows the weakness the overall Australian economy is facing. The ongoing job losses throughout the economy also provide clear evidence that the ABS unemployment figures released monthly lack credibility. ABS estimated unemployment of only 5.7 per cent in March, indicating a booming Australian economy, which is most certainly not reflected in other measures and clearly not believed by the RBA, which is once again cutting interest rates.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ARRIUM LIMITED – ASX ARI, QUEENSLAND NICKEL PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ELECTROLUX PTY LTD

Eight weeks out, too close to call

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 2 : 9-May-16

The Coalition won the 2013 federal election by 53.5 per cent to the Australian Labor Party’s 46.5 per cent on a two-party preferred basis, and public opinion polls suggest that the 56-day double-dissolution election on 2 July 2016 will be very close. The Opposition will require a swing of more than four per cent to win the election and oust a federal government after just one term for the first time since 1931.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, FAIRFAX MEDIA LIMITED – ASX FXJ, IPSOS AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE GOVERNOR-GENERAL, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

Turnbull supported as Liberal Leader by 41% (down 23%) while Plibersek (22%) and Albanese (20%) still well ahead of Shorten 14% (up 5%) for ALP

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 6-May-16

A special telephone Morgan Poll, which was carried out on 4-5 May 2016, has found that 41 per cent of Australian electors prefer Prime Minister Malcolm Turnbull as Liberal Party Leader, while 24 per cent prefer Deputy Leader Julie Bishop and seven per cent prefer former Prime Minister Tony Abbott. Meanwhile, 22 per cent of electors prefer Deputy Opposition Leader Tanya Plibersek as Australian Labor Party Leader, ahead of Shadow Minister for Infrastructure and Transport Anthony Albanese (20 per cent) and Opposition Leader Bill Shorten (14 per cent). Roy Morgan Research executive chairman Gary Morgan says Labor’s best chance of a surprise victory in the upcoming Federal Election may be a last-minute leadership switch to Plibersek, as Labor did in 1983 when Bob Hawke replaced Bill Hayden as party Leader on the day Liberal Prime Minister Malcolm Fraser called an early Federal Election. Voting Intention telephone Morgan Poll conducted after Budget released Friday 6, 2016 – LNP 51% ALP 49%.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Turnbull 57% (but down 19%) still preferred Australian PM cf. Shorten 24% (up 10%) after Federal Budget handed down

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 6-May-16

A special telephone Morgan Poll, which was carried out on 4-5 May 2016, has found that 57 per cent of Australian electors rate Prime Minister Malcolm Turnbull as the "Better PM"’. This is 19 per cent lower than a telephone Morgan Poll in October 2015. In contrast, 24 per cent of electors rate Opposition Leader Bill Shorten as the "Better PM", an increase of 10 per cent. Meanwhile, the number of electors who approve of Turnbull’s handling of his job as PM has fallen by 23 per cent to 43 per cent, and the proportion of electors who approve of Shorten’s handling of his job as Opposition Leader has risen by nine per cent to 34 per cent. Voting Intention telephone Morgan Poll conducted after Budget released Friday 6, 2016 – LNP 51% ALP 49%.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

It’s time to reignite growth

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Original article by Annabel Hepworth, David Swan
The Australian – Page: 19 & 22 : 9-May-16

Business leaders say workplace reform, corporate taxes and economic stimulus are among the issues that need to be addressed during the 56-day federal election campaign. Andrew Harding, the head of Rio Tinto’s iron ore division, has stressed the need for policies that will promote economic growth, a view shared by Virgin Australia Holdings CEO John Borghetti. Business Council of Australia CEO Jennifer Westacott also argues that measures to boost economic growth should be a priority, while the Australian Industry Group has emphasised the need for tax reform.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, OFX, AUSTRALIAN LABOR PARTY

Turnbull’s biggest economic landmines

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 9-May-16

A number of factors may affect the election prospects of Prime Minister Malcolm Turnbull on 2 July 2016. The Reserve Bank holds its next monetary policy meeting on 7 June. While rating agencies are unlikely to downgrade Australia’s credit rating during the election campaign, Turnbull will be concerned about the possibility of Australia being placed on credit watch in the wake of the Budget. Economic data to be released during the 56-day campaign include the national accounts for the March quarter and jobs data for both May and June.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Tax crackdown will be far reaching

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Original article by Joanna Mather
The Australian Financial Review – Page: 17 : 5-May-16

The Corporate Tax Association’s Michelle de Niese says the diverted profits tax outlined in the Australian Government’s May 2016 Budget may prove to be broader in scope than a similar tax in the UK. Companies found to have engaged in profit-shifting will face a tax rate of 40 per cent on such profits, compared with the corporate tax rate of 30 per cent. Mark Konza of the Australian Taxation Office adds that the new tax may affect more taxpayers than the multinational anti-avoidance law, which was introduced in 2015.

CORPORATES
CORPORATE TAX ASSOCIATION, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RSM PTY LTD, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, NETFLIX INCORPORATED

Ratings groups keep their powder dry

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 5-May-16

Rating agencies Standard & Poor’s and Moody’s will assess the Australian Government’s May 2016 Budget before deciding whether to review the nation’s coveted "AAA" credit rating. National Australia Bank’s Alan Oster says the Budget measures should be sufficient to avoid a ratings downgrade, but adds that Australia’s credit rating outlook could potentially be revised. Meanwhile, Moody’s forecasts 3.7 per cent growth in nominal GDP in 2016-17, while the Treasury expects 4.25 per cent growth.

CORPORATES
STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY, TD SECURITIES, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEUTSCHE BANK AG

Average Joes saved from bracket creep

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Original article by Fleur Anderson
The Australian Financial Review – Page: B5 : 4-May-16

The 37 per cent personal income tax rate threshold will be raised from $A80,000 to $A87,000. The new measure, announced by the Federal Government in the May 2016 Budget, will take effect on 1 July. Treasurer Scott Morrison said that 500,000 taxpayers will benefit from the "bracket-creep" tax cut.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY