AUSTRALIA – POLITICS AND GOVERNMENT

Tighter test for foreign investors

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 5-Jun-20

The federal government will announce a revamp of Australia’s foreign investment regime on 5 June; the government wants to close what it contends are ‘national security’ gaps in the current rules. One of the changes will see the Foreign Investment Review Board apply a National Security Test to assets defined as a ‘sensitive national security business’; such assets include water, telecommunications and energy. The government intends to legislate the changes in July, with the intention of having them come into effect in January.

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AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

The Government’s HomeBuilder scheme offers $25k for home renovations – but not everyone will qualify

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Original article by Jordan Heyne
abc.net au – Page: Online : 5-Jun-20

People wanting to apply for grants of $25,000 to build a new home or renovate an existing one under the federal government’s HomeBuilder scheme must meet a range of criteria. They income thresholds and limits on the value of homes to be newly built, including the land. Contracts for new homes or renovations must be entered into before the end of 2020, and construction must begin within three months of the contract date. People wanting to use the money for a renovation must spend at least $150,000 of their own funds, and the home being renovated must be worth less than $1.5 million prior to the renovation. Investment properties do not qualify for the scheme.

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Bearish start to IR reform talks

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 4-Jun-20

Industrial Relations Minister Christian Porter held the first meeting with representatives of the union movement and employers’ groups on 3 June, as part of a collaborative approach to workplace reforms. He said that both groups appreciate the need for change. Business Council of Australia CEO Jennifer Westacott said employers and unions must be prepared to make compromises, while ACTU secretary Sally McManus said unions are open to changing the ‘better off overall test’. Meanwhile, the Treasury warned that it could take 5-7 years for the economy to recover from the pandemic, and that the unemployment rate could be 8-9 per cent by 2021.

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AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS,BUSINESS COUNCIL OF AUSTRALIA,ACTU

Universities on brink of ground zero

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Original article by Geoff Chambers, Tim Dodd
The Australian – Page: 1 & 2 : 3-Jun-20

The University of Sydney’s vice-chancellor Michael Spence has warned that the higher education sector’s loss of fee revenue from international students will jeopardise its future research capabilities. Australian National University vice-chancellor Brian Schmidt has expressed similar concerns, noting the economic benefits of university-based research. The nation’s universities are lobbying the federal government for increased funding to offset the loss of revenue due to the pandemic, but Education Minister Dan Tehan says their focus should shift to local students and online learning. Some universities have already laid off employees.

CORPORATES
UNIVERSITY OF SYDNEY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. DEPT OF EDUCATION AND TRAINING

Near $1bn boost for building kicks off targeted stimulus

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Original article by Geoff Chambers
The Australian – Page: 1 & 2 : 3-Jun-20

The federal government is expected to release details of its coronavirus stimulus package for the construction industry on 4 June. It is tipped to include cash grants of between $20,000 and $50,000 for people buying a new home, in order to avert a decline in construction activity towards the end of 2020. The government is also expected to provide cash grants for home renovations. A stimulus package for the arts and entertainment is also said to be on the government’s agenda.

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Plea to save media jobs in the regions

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Original article by Max Mason
The Australian Financial Review – Page: 2 : 30-May-20

Regional media companies such as WIN Corporation and Australian Community Media have lobbied the federal government to further relax cross-media ownership laws. Concerns about the future of the regional media sector have been heightened by News Corp Australia’s decision to axe 36 regional and community newspapers and shift 76 titles to digital-only editions. The move will also result in the loss of hundreds of jobs. Further job cuts in the regional media are possible when the JobKeeper wage subsidy scheme ends in September.

CORPORATES
WIN CORPORATION PTY LTD, AUSTRALIAN COMMUNITY MEDIA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND COMMUNICATIONS

ATO to probe claims of $11m JobKeeper rort

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

Bedding company Australian Comfort Group is alleged to have deliberately depressed monthly revenue in order to become eligible for up to $11 million in wage subsidies under the JobKeeper scheme. The Australian Taxation Office will investigate the allegations. The Australian Comfort Group has claimed that the person who has made the allegations was only with the company for a short period of time and has now lodged a claim under the Fair Work Act that includes compensation of $200,000. The company contends that any investigation of its eligibility to claim the JobKeeper payment "will stand up to scrutiny".

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AUSTRALIAN COMFORT GROUP PTY LTD, AUSTRALIAN TAXATION OFFICE

Treasurers at odds over call to abolish payroll tax

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Original article by Sumeyya Ilanbey
The Age – Page: Online : 1-Jun-20

Federal Treasurer Josh Frydenberg says he is keen to work with the states and territories to help reduce the payroll tax burden on companies. Frydenberg says he would "love the states" to get rid of the tax, but Victorian Treasurer Tim Pallas has rejected any likelihood that the state will do so. Payroll tax generated $6.2 billion for the Victorian government in the 2018-19 financial year, and Pallas says abolishing it would reduce the government’s ability to fund services and infrastructure projects.

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

Lowe urges paying subsidies for longer

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Original article by Patrick Commins
The Australian Financial Review – Page: 4 : 29-May-20

Treasurer Josh Frydenberg has reiterated that the JobKeeper wage subsidy scheme and the doubling of the JobSeeker allowance are temporary and targeted measures. However, Reserve Bank of Australia governor Philip Lowe has told a Senate committee hearing that there may be a case for extending some of the coronavirus stimulus measures; he has warned that withdrawing the fiscal stimulus too soon could hinder the economy’s recovery from the pandemic. Lowe also said that recent economic data suggests that the downturn may not be as severe as had been forecast.

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AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Fast track to post-virus freedom

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 29-May-20

A meeting of the national cabinet on 29 May will review the progress of the states and territories in easing coronavirus lockdown restrictions in recent weeks. Meanwhile, the federal government’s target date of July to re-open the economy may be brought forward if the nation’s success in containing the virus’s spread is sustained. The Australian Health Protection Principal ­Committee is expected to recommend doing so earlier if the nation continues to record fewer than 10 new cases of the coronavirus each day. The meeting is also expected to consider retaining the national cabinet model in the post-coronavirus environment.

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AUSTRALIAN HEALTH PROTECTION PRINCIPAL COMMITTEE