AUSTRALIA – POLITICS AND GOVERNMENT

Tax reform pushed onto the states

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 27-Jul-20

New South Wales Treasurer Dominic Perrottet has been leading a push for tax reform, including the goods and services tax, payroll tax and stamp duties. The federal government wants its NSW counterpart to outline clear proposals for tax reform, amid doubts as to whether Perrottet has much support within the state government for his proposals. Prime Minister Scott Morrison has previously stated that the federal government will not consider tax reform proposals unless there is agreement among the states, while Federal Liberal MP Jason Falinski contends that the worst taxes are state-based and can be changed without any involvement at federal level.

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NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Thatcher claim fighting words to Labor, ACTU

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Original article by Joe Kelly
The Australian – Page: 4 : 27-Jul-20

Australian Chamber of Commerce & Industry CEO James Pearson has backed a push to extend temporary changes to the Fair Work Act for employers that will not be eligible for the JobKeeper scheme after September. He has urged Labor and the ACTU to support extending the emergency measures, which allow bosses to vary the hours an employee works and the duties they perform. Shadow treasurer Jim Chalmers has expressed concern that the federal government wants to adopt an industrial relation policy similar to that of former British prime minister Margaret Thatcher.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN LABOR PARTY, ACTU

L-NP (51.5%) increases lead over ALP (48.5%) in mid-July as second wave of COVID-19 hits Victoria

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Jul-20

Roy Morgan CEO Michele Levine explains: "The L-NP Government (51.5%, up 1% since June) leads the ALP (48.5%) in mid-July as a new wave of COVID-19 has forced the Melbourne metropolitan area back into lockdown. Roy Morgan Government Confidence Rating is down 9.5pts to 114.5 nationally from a month ago, but has fallen by a significant 16pts to only 104 in Victoria as other States have closed their borders to Victorians and the outbreak threatens the national economic recovery. In response the Federal Government has extended JobKeeper and JobSeeker until March 2021, however this has led to the forecast Federal Budget deficit blowing out to a record $186 billion for 2020/21."

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ROY MORGAN LIMITED, MORGAN POLL, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

AAA rating defies $184b deficit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 24-Jul-20

The Australian economy will contract by 2.25 per cent in 2020-21, according to forecasts in the federal government’s economic update. The nation’s official unemployment rate is in turn projected to rise from 7.4 per cent at present to 9.25 per cent by the end of the year. Treasury has also forecast a Budget deficit of $85.5bn for 2019-20, rising to around $184.5bn in 2020-21. Meanwhile, the nation’s gross debt is slated to top $851.9bn in 2020-21. Moody’s and S&P have indicated that the economic update will have no impact on Australia’s triple-A credit rating.

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AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Bushfires royal commission granted another two months to file report

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The New Daily – Page: Online : 24-Jul-20

The Royal Commission into National Natural Disaster Arrangements has been given until 28 October to present its final report, representing a two-month extension. Emergency Management Minister David Littleproud said commission chair Mark Binskin had sought the extension because the impact of COVID-19 had made it hard for some stakeholders to provide it with information in a timely manner. Littleproud has also announced that the federal government will allocate $88.1 million in funding over 10 years for additional research into bushfires and natural hazards.

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AUSTRALIA. ROYAL COMMISSION INTO NATIONAL NATURAL DISASTER ARRANGEMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Frydenberg backs wider IR changes

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Original article by Ewin Hannan
The Australian – Page: 5 : 24-Jul-20

Treasurer Josh Frydenberg identified industrial relations reform as a key priority for the federal government after releasing the economic update on 23 July. He will push for temporary changes to the Fair Work Act to be extended to include businesses that will no longer be eligible for the JobKeeper wage subsidy at the end of September. Australian Industry Group CEO Innes Willox has backed the proposal, but ACTU president Michele O’Neil contends that the more flexible workplace arrangements should not be available to businesses that are no longer struggling.

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AUSTRALIA. DEPT OF THE TREASURY, THE AUSTRALIAN INDUSTRY GROUP, ACTU

Early access to super extended, Treasury reveals

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Original article by Adrian Flores
My Business – Page: Online : 24-Jul-20

The federal government has extended the deadline for people wanting to apply for the early release of up to $10,000 from their superannuation fund from 24 September to 31 December. The government has also advised that the COVID-19 SME Guarantee Scheme has been extended to loans written until 30 June 2021, and that the Supporting Apprentices and Trainees wage subsidy has been extended for an additional six months to 31 March 2021, as well as being broadened to cover medium-sized businesses from 1 July.

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Pressure on PM for permanent dole rise

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Original article by Rosie Lewis
The Australian – Page: 4 : 22-Jul-20

The coronavirus supplement for JobSeeker recipients will be reduced from $550 per fortnight to $250 from 25 September. This will reduce the maximum unemployment benefit for a single person to about $800 a fortnight. The revised JobSeeker allowance will apply until the end of 2020, although the federal government has signalled that it is likely to be extended for a further three months. Australian Council of Social Service CEO Cassandra Goldie has called for a permanent increase in JobSeeker when the coronavirus supplement ends. The requirement that JobSeeker recipients must apply for at least four jobs per month will be reinstated from 4 August.

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AUSTRALIAN COUNCIL OF SOCIAL SERVICE

Revamp will push 2.5m off JobKeeper

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 22-Jul-20

The federal government’s revised JobKeeper wage subsidy scheme is expected to cost $16.6bn over six months. The new tiered JobKeeper scheme will feature two levels of payment based on the number of hours worked, rather than the existing fortnightly payment of $1,500 for all eligible workers. The lower JobKeeper payments will take effect from 28 September and will be further reduced from early January. Treasury has forecast that the number of people receiving JobKeeper will fall from 3.5 million at present to 1.4 million in the December quarter, and just one million in the March quarter.

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Business in push to fast-track tax cuts

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Original article by Rosie Lewis, Joe Kelly
The Australian – Page: 1 & 4 : 15-Jul-20

The Australian Chamber of Commerce & Industry has used its pre-budget submission to call for comprehensive tax reform, including bringing forward legislated personal income tax cuts. The ACCI also advocates a gradual reduction in the JobSeeker allowance to pre-coronavirus levels, while it says the domestic economy will be vulnerable to further shocks for several years due to the impact of COVID-19. Meanwhile, a Menzies Research Centre paper argues that all of the national cabinet’s decisions on coronavirus lockdowns measures should be subject to a cost-benefit analysis. The report by economists Henry Ergas and Joe Branigan was written before the new virus outbreaks in Melbourne and Sydney.

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AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE MENZIES RESEARCH CENTRE LIMITED