AUSTRALIA – ECONOMIC POLICY

Not time to risk Labor: Morrison

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Original article by Joe Kelly
The Australian – Page: 9 : 17-May-19

Prime Minister Scott Morrison used his last major speech before the election to emphasise that voters want a government that they can trust and rely on. Addressing the National Press Club in Canberra, Morrison warned that Labor’s policies of increased taxes and government spending would stifle wages growth, dampen consumer confidence and impede economic growth. He said the Coalition’s policies will create 1.25 million jobs and 250,000 new small and medium enterprises.

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

‘Labor won’t lead revolution of reform’

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Original article by Michael Roddan, Joe Kelly
The Australian – Page: 6 : 9-May-19

Opposition Leader Bill Shorten has indicated that Labor will "modernise the economy" if it wins the federal election. Former IFM Investors chairman Garry Weaven says a Labor government would not pursue significant economic reform, adding that "revolutionary" reform is not necessary. Robert Carling of the Centre for Independent Studies agrees that a Shorten government would not seek to undertake reforms on the scale of those implemented by Labor under former prime ministers Bob Hawke and Paul Keating.

CORPORATES
AUSTRALIAN LABOR PARTY, IFM INVESTORS PTY LTD, THE CENTRE FOR INDEPENDENT STUDIES LIMITED, ACTU, GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

We can withstand a downturn: Frydenberg

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 8-May-19

Treasurer Josh Frydenberg is confident that the Australian economy would be resilient in the event of a significant downturn in the global economy. Frydenberg notes amongst other things that the tax cuts in the April 2019 Budget will boost consumer spending and economic activity, and he believes that the Coalition’s policy settings are sufficient without having to pursue stimulatory measures such as bringing forward the full tax cuts package. Frydenberg also dismisses suggestions that legislating the tax cuts is the Coalition’s only real policy agenda.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, CENTRE ALLIANCE, NATIONAL PARTY OF AUSTRALIA, ADANI MINING PTY LTD

IMF warns on housing slide

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 2 : 8-Apr-19

The International Monetary Fund is expected to downgrade its forecast for the Australian economy in its latest World Economic Outlook. Thomas Helbling, the IMF’s lead economist for Australia, warns that the nation’s housing market downturn has been more severe than anticipated and it has occured sooner than expected. He says the property market downturn will need to be offset via government policies aimed at stimulating the economy, such as increased investment in infrastructure. Helbling has also raised the possibility of interest rate cuts.

CORPORATES
INTERNATIONAL MONETARY FUND

PM says it’s enterprise versus envy

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Mar-19

Prime Minister Scott Morrison will tell a business summit on 5 March that the differences on economic policy between the Coalition and Labor are the greatest they have been for over 40 years. Morrison will also announce a $328 million commitment for programs aimed at preventing domestic violence and support for victims. Morrison will also tell the summit that the 2019 federal election presents a choice between "enterprise and envy".

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

BCA has had a gutful of politics

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Feb-19

Business Council of Australia CEO Jennifer Westacott has urged both sides of federal politics to cease their attacks on the business sector and focus on policies to stimulate the economy and wages. She is particularly critical of the government’s proposal to force energy companies to divest assets if they fail to reduce electricity prices, arguing that it will deter investment in Australia and will doing little to provide price relief. Westacott has also criticised Labor’s proposed banking industry reforms in response to the Hayne royal commission.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

No wonder business is nervous, says Shepherd

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Original article by Joe Kelly
The Australian – Page: 2 : 22-Jan-19

Former Business Council of Australia president Tony Shepherd says the nation’s economy is solely dependent on resources exports, which in turn are dependent on global economic growth. Shepherd has also warned that Australian policymakers have become complacent after 27 years of economic growth. Meanwhile, federal Treasurer Josh Frydenberg says unions would be the biggest risk to the economy under Labor’s industrial relations policy.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, THE AUSTRALIAN INDUSTRY GROUP

Eslake warns on wage crisis ramifications

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Original article by Anna Patty
The Age – Page: 33 : 29-Nov-18

Australian economist Saul Eslake says the business sector’s push for economic reform is being undermined by the low growth in wages. Eslake argues that the general public is becoming less receptive to reforms such as free trade, deregulation and company tax cuts in an era of sluggish wage growth. Eslake has contributed to a new book titled "The Wages Crisis in Australia". Its editors have argued the case for changes to the Fair Work Act, including expanding the definition of an "employee" to include anyone who provides labour and allowing enterprise bargaining at industry level.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, UNIVERSITY OF ADELAIDE, UNIVERSITY OF TASMANIA, RESERVE BANK OF AUSTRALIA

Nation’s economic success little more than good luck

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Original article by David Uren, Joe Kelly
The Australian – Page: 1 & 2 : 8-Oct-18

Business Council of Australia CEO Jennifer Westacott argues that the nation’s GDP growth is primarily due to factors such as population growth, consumption and government spending, rather than productivity gains. She notes that productivity growth has fallen to its lowest levels since the 1970s, and she has stressed the risks facing the domestic economy. Westacott and Australian Chamber of Commerce & Industry CEO James Pearson have both highlighted the federal government’s failure to deliver on policies such as the national energy guarantee and company tax cuts.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD

Debt binge stifles jobs and growth: IMF

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 4-Oct-17

The International Monetary Fund has warned that policies which encourage consumers to increase their debt in the near-term have a negative effect on economic growth in the longer term. The IMF’s modelling concludes that a five per cent increase in the household debt-to-GDP ratio results in a 1.25 per cent fall in real GDP three years later. Australia’s household debt-to-income ratio now exceeds 190 per cent.

CORPORATES
INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA