O75 Public Administration

Dividend credit debate splits business, investors

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Original article by Vesna Poljak, Shaun Drummond, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 31-Mar-15

Changes to the dividend imputation system are among the reforms canvassed in the Australian Government’s tax discussion paper, which was released in late March 2015. Wilson Asset Management chairman Geoff Wilson says scrapping dividend imputation credits may result in a sharp fall in yields for investors, while Fidelity fund manager Paul Taylor warns that it would result in poor decisions on the allocation of capital. However, some observers are in favour of reviewing dividend imputation

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WILSON ASSET MANAGEMENT, FIDELITY INVESTMENTS AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, CORPORATE TAX ASSOCIATION, COCHLEAR LIMITED – ASX COH, GROUP OF 100, BUSINESS COALITION FOR TAX REFORM, WOOLWORTHS LIMITED – ASX WOW, WAVESTONE CAPITAL PTY LTD, CARDNO LIMITED – ASX CDD, AMP LIMITED – ASX AMP

Hockey opens up tax reform

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 10 : 30-Mar-15

The Australian Government’s tax discussion paper has put broad-based tax reform on the agenda if it wins a second term in office. Options examined in the discussion paper include the indexation of income tax thresholds to counter so-called "bracket creep", a zero tax rate for small businesses, an increase in the capital gains tax and changes to the good and services tax. Treasurer Joe Hockey argues that the nation is too reliant on income tax as a source of government revenue

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AUSTRALIA. DEPT OF THE TREASURY

NSW result raises hopes for change

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 30-Mar-15

The New South Wales Coalition is forecast to have 54 seats in the new parliament, compared with 34 for the Australian Labor Party. The re-election of the government led by Premier Mike Baird is likely to strengthen the position of Prime Minister Tony Abbott after the conservative parties lost the Queensland election earlier in 2015. Business Council of Australia CEO Jennifer Westacott says Baird’s victory demonstrates that voters will support reforms if a sound case for change is presented to them

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NEW SOUTH WALES. DEPT OF PREMIER AND CABINETLIBERAL PARTY OF NEW SOUTH WALESNATIONAL PARTY OF AUSTRALIAAUSTRALIAN LABOR PARTYAUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINETBUSINESS COUNCIL OF AUSTRALIAAUSTRALIA. DEPT OF THE TREASURYTHE GREENS NSW INCORPORATED

Strategist predicts one-in-three chance of local recession

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Original article by Patrick Begley
The Australian Financial Review – Page: 22 : 27-Mar-15

Financial market strategist Gerard Minack forecasts that Australia will have lower economic growth in the next 12 months, and he estimates that there is a 33 per cent chance of a recession. Minack also expects the Australian sharemarket to fall and further easing of monetary policy. Saul Eslake of Bank of America Merrill Lynch believes that the chance of a recession in 2015 or 2016 is less than 25 per cent

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BANK OF AMERICA AUSTRALIA LIMITEDMERRILL LYNCH (AUSTRALIA) PTY LTDJP MORGAN AUSTRALIA LIMITEDRESERVE BANK OF AUSTRALIAGOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Unions urge defiance on super freeze

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Original article by Ewin Hannan
The Australian Financial Review – Page: 8 : 26-Mar-15

The ACTU states in a submission to the Fair Work Commission that mandatory contributions to superannuation should be increased by 0.5 per cent to 10 per cent for workers on award minimum wages. The Australian Government does not want to increase super contributions, but the ACTU claims that the commission has power under the Fair Work Act to order the increase

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ACTU, RESERVE BANK OF AUSTRALIA, AUSTRALIANSUPER PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Unions urge defiance on super freeze

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Original article by Ewin Hannan
The Australian Financial Review – Page: 8 : 26-Mar-15

The ACTU states in a submission to the Fair Work Commission that mandatory contributions to superannuation should be increased by 0.5 per cent to 10 per cent for workers on award minimum wages. The Australian Government does not want to increase super contributions, but the ACTU claims that the commission has power under the Fair Work Act to order the increase

CORPORATES
ACTU, RESERVE BANK OF AUSTRALIA, AUSTRALIANSUPER PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Retirement lump sum could end

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 25-Mar-15

The financial system inquiry’s recommendation that future retirees should not receive a superannuation lump sum payout may be implemented. The Department of the Treasury’s executive director John Lonsdale addressed the Australian Securities & Investment Commission’s annual conference on 24 March 2015. He raised the prospect of new rules that would require superannuants to finance their retirement via a default pension fund rather than a lump sum payout

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SUPERANNUATION CONSUMERS CENTRE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Mike Baird set to lead L-NP to clear victory in NSW Election

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 24-Mar-15

A special SMS Morgan Poll on State voting intention has found that support for the New South Wales Coalition on a two-party preferred basis has risen by 0.5 per cent to 56 per cent. The poll, which was carried out from 20-23 March 2015, also shows that support for the Australian Labor Party has fallen by 0.5 per cent to 44 per cent. Roy Morgan Research executive chairman Gary Morgan says all signs points to a comfortable victory for the Coalition on 28 March, despite the Coalition’s losses in recent state elections in Queensland and Victoria

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MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF NEW SOUTH WALES, NATIONAL PARTY OF AUSTRALIA, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, CHRISTIAN DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Budget woos small firms, start-ups

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 25-Mar-15

The Australian Government’s May 2015 Budget will include tax relief for small businesses, including those that are not incorporated. There were concerns that they would not receive the proposed 1.5 per cent reduction in the company tax rate for small businesses. The Government may also introduce accelerated depreciation for assets held by small businesses, while it intends to wind back changes to employee option schemes that were implemented by the Australian Labor Party

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AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Living standards rise again

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 24-Mar-15

Research by the National Centre for Social & Economic Modelling at the University of Canberra shows that household incomes in Australia rose by 2.7 per cent in 2014. Meanwhile, the cost of living increased by just 1.4 per cent. The latter trend is the result of lower energy costs

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UNIVERSITY OF CANBERRA. NATIONAL CENTRE FOR SOCIAL AND ECONOMIC MODELLING, RESERVE BANK OF AUSTRALIA