O75 Public Administration

Business v Barnaby in effects-test stoush

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Original article by Patrick Durkin
The Australian Financial Review – Page: 4 : 22-Feb-16

Australia’s new Deputy Prime Minister Barnaby Joyce says the National Party favours making changes to competition law to introduce a so-called "effects test". However, many blue-chip companies oppose any move to introduce changes to the misuse of market power provisions in order to protect small businesses. They include Woolworths, Wesfarmers, Insurance Australia Group and Boral.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PARTY OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BORAL LIMITED – ASX BLD, SYDNEY AIRPORT – ASX SYD, AUSTRALIA. DEPT OF THE TREASURY, FOXTEL MANAGEMENT PTY LTD, AGL ENERGY LIMITED – ASX AGK, TELSTRA CORPORATION LIMITED – ASX TLS, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, IGA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Mandatory super comes under fire

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Original article by Sally Rose, Joanna Mather, Misa Han, Patrick Durkin
The Australian Financial Review – Page: 1 : 22-Feb-16

A spokesman for Treasurer Scott Morrison has downplayed media reports which suggested that the Federal Government may allow low-income earners to opt out of the superannuation system. The proposal has received support from David Murray, who headed the Government’s financial system inquiry, although it has attracted criticism from the superannuation industry and key employer groups.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, THE AUSTRALIAN INDUSTRY GROUP, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, DELOITTE TOUCHE TOHMATSU LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, FINANCIAL SERVICES COUNCIL, INDUSTRY SUPER AUSTRALIA PTY LTD, NATIONAL PARTY OF AUSTRALIA, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, REST SUPER PTY LTD, VISION SUPER PTY LTD

Iron ore rally could mean budget windfall

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Original article by Mark Mulligan, Gareth Hutchens
The Australian Financial Review – Page: 7 : 22-Feb-16

The iron ore price has rallied to its highest level in three months, and it is now higher than the price that was forecast in the Australian Government’s 2015 mid-year Budget update. Chris Richardson of Deloitte Access Economics estimates that Government revenue could be boosted by about $A1.2bn if the iron ore price remains at around its current level until the mid-year update in November 2016. Paul Bloxham of HSBC adds that the LNG price will also be a significant factor for the Budget update.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Rise in jobless to cut interest rates

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Original article by Adam Creighton
The Australian – Page: 1 & 5 : 19-Feb-16

Official data shows that Australia’s unemployment rate rose from 5.8 per cent to six per cent in January 2016. However, the participation rate was steady at 65.2 per cent. Meanwhile, part-time employees now account for a record 31.2 per cent of the workforce. The jobless rate in New South Wales was 0.3 per cent higher at 5.5 per cent, while unemployment in Victoria increased by 0.3 per cent to 6.3 per cent. Tim Toohey of Goldman Sachs says the jobs data will strengthen the case for further interest rate cuts, and he expects two rate cuts in 2016.

CORPORATES
GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. FEDERAL RESERVE BOARD

Spending spree hits tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Feb-16

Treasurer Scott Morrison says that fiscal prudence will only allow for "modest" income tax cuts in the May 2016 Budget. The tax-free threshold of $A18,200 is unlikely to be raised. Only those earning more than $A80,000 a year could count on some tax relief.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Coalition has ‘failed’ to deliver on workplace policy promises

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Original article by James Massola
The Age – Page: 4 : 18-Feb-16

The Australian Government has made just four changes to industrial relations laws since taking office in September 2013. However, it has failed to make much progress on most of the 14 election policy commitments it made regarding industrial relations. Key policies such as reinstating the Australian Building & Construction Commission and changes to union right of entry laws have been stalled in the Senate.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. ROAD SAFETY REMUNERATION TRIBUNAL, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT

Penalties on table for leave review

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Original article by Rick Wallace
The Australian – Page: 2 : 17-Feb-16

Victoria’s Industrial Relations Minister Natalie Hutchins has proposed a review of regulations governing long-service leave. Options that are canvassed in a discussion paper include allowing workers to cash out their long-service leave or take it in small amounts rather than one or two large blocks at a time. The Victorian Trades Hall Council also advocates portability of long-service leave entitlements and applying penalty rates to such leave.

CORPORATES
VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, VICTORIAN TRADES HALL COUNCIL, AUSTRALIAN LABOR PARTY

Negative gearing debate sparks divisions, passion

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Original article by Anne Hyland, Larry Schlesinger
The Australian Financial Review – Page: 1 & 4 : 17-Feb-16

Mayne Pharma director Roger Corbett has urged the Australian Government to leave the negative gearing regime unchanged, arguing that it has increased the wealth of people on middle incomes. Yellow Brick Road’s Mark Bouris also opposes any change to negative gearing, warning of the impact on economic growth and the investment market. However, former Perpetual fund manager Peter Morgan and ex-Reserve Bank board member Warwick McKibbin favour the abolition of negative gearing.

CORPORATES
MAYNE PHARMA GROUP LIMITED – ASX MYX, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, PERPETUAL LIMITED – ASX PPT, RESERVE BANK OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WAL-MART STORES INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Ministers told: stop spending

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Original article by Dennis Shanahan
The Australian – Page: 1 & 4 : 17-Feb-16

Treasurer Scott Morrison will use a National Press Club speech on 17 February 2016 to stress the need to ensure that government spending does not exceed revenue. He will argue that increased taxation should not be used to lift revenue above expenditure, and caution against justifying new spending measures by offsetting them against savings achieved elsewhere. Meanwhile, Prime Minister Malcolm Turnbull has officially ruled out an increase in the GST but says action must be taken on the issue of income tax "bracket creep".

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

Liberal MPs wary on negative gearing

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

Discussions about negative gearing have a political aspect. Both the Coalition and the Opposition want to impose restrictions in this area despite resistance from investors. The Australian Labor Party has proposed limiting negative gearing to new homes, while Treasurer Scott Morrison favours limits on the number of negatively geared properties or a cap on annual tax deductions. Coalition MPs are worried about a backlash from voters.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET