AUSTRALIA – POLITICS AND GOVERNMENT

Business cashflow assistance tops $6bn

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Original article by Geoff Chambers, Patrick Commins
The Australian – Page: 4 : 1-May-20

Prime Minister Scott Morrison says the federal government’s tax-free cashflow payments have assisted employers to remain in business during the coronavirus pandemic. New figures show that some 343,211 small businesses and non-profit organisations had collectively received $6.09bn worth of cashflow payments by 28 April. Eligible businesses are entitled to receive payments of between $20,000 and $100,000; the average amount received to date is $17,700 per business. The government estimates that about 720,000 businesses will be eligible for the payments.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Budget impact may be lessened by quicker recovery

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Original article by Phillip Coorey
The Australian Financial Review – Page: 2 : 29-Apr-20

The federal government is hopeful that Australia’s success in containing the coronavirus will result in the JobKeeper wage subsidy scheme costing far less than the $130bn that has been budgeted. The government had expected about six million workers to access the payment; Treasury secretary Steven Kennedy has told a parliamentary inquiry that there have been 540,000 applications from employers to date, covering about 3.3 million workers. The cost of the JobSeeker package for the unemployed may also end up being less than forecast.

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AUSTRALIA. DEPT OF THE TREASURY

L-NP support jumps as Australia responds well to COVID-19 pandemic

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Apr-20

In the last month support for the L-NP has jumped 4.5% and recovered from a poor response to the summer bushfires, according to the latest Roy Morgan Poll. L-NP 51.5% now leads the ALP 48.5% on a two-party preferred basis following Government’s successful response to COVID-19 with now only a handful of new cases being announced. L-NP support is now significantly higher than their February low of only 45% when voters were not impressed by Prime Minister Scott Morrison and his Government’s handling of the bushfires.

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

Budget updates to push growth agenda

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Apr-20

The federal government will release a statement on the impact of the coronavirus on the domestic economy when parliament resumes in May. Amongst other things, it will outline how much the government has spent on stimulus measures to date. The Coalition also intends to release new economic forecasts in June, which take into account the likely future impact of the pandemic. Labor and former Treasury official Greg Smith have previously urged the government to release an economic update in the near-term, arguing that it is too long to wait until the Budget in October.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Post-pandemic world a great chance to turbocharge growth

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Original article by Patrick Commins, Ewin Hannan
The Australian – Page: 1 & 6 : 24-Apr-20

Professor Ian Harper says Australia should pursue micro-economic reforms once the coronavirus pandemic abates. He argues that the priority should be on smaller regulatory changes that will boost productivity over the long-term, rather than wholesale reform. Amongst other things, Harper has proposed an overhaul of urban planning and zoning laws to ensure consistency across jurisdictions, and greater use of road user charges to combat traffic congestion as people begin to return to work. Harper chaired the federal government’s competition review in 2015.

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PM roasts banks over Covid fail

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Original article by Simon Benson, Rosie Lewis
The Australian – Page: 1 & 6 : 24-Apr-20

Australia’s four major banks will fast-track applications for bridging finance by companies that are struggling to pay their wages bills after Prime Minister Scott Morrison intervened. He has criticised the banks for taking too long to process such applications, with employers’ groups warning that some businesses have been forced to lay off employees while they wait to receive JobKeeper payments. tax commissioner Chris Jordan raised the issue with bank executives following a telephone conference with Morrison and Treasurer Josh Frydenberg.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN RETAILERS ASSOCIATION, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, RESTAURANT AND CATERING INDUSTRY ASSOCIATION OF AUSTRALIA INCORPORATED, COMMONWEALTH AGRICULTURAL BUREAU INTERNATIONAL, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Porter seeks Hawke-style accord with unions to spark a recovery

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Original article by Rosie Lewis, Greg Brown, Olivia Caisley
The Australian – Page: 4 : 23-Apr-20

Council of Small Business Organisations CEO Peter Strong has called for the industrial awards system to be abolished, while Australian Industry Group CEO Innes Willox says awards should be retained but simplified. Industrial Relations Minister Christian Porter has signalled that workplace reform will be on the federal government’s agenda. He hopes to build on recent good relations with ACTU secretary Sally McManus to have constructive discussions with union leaders regarding workplace reforms aimed at creating jobs and boosting wages when the coronavirus abates.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, THE AUSTRALIAN INDUSTRY GROUP, ACTU

Tax system doesn’t support recovery

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Original article by John Kehoe, Patrick Durkin
The Australian Financial Review – Page: 6 : 23-Apr-20

Former Treasury secretary Ken Henry has backed calls by Reserve Bank of Australia governor Philip Lowe for an overhaul of the tax system when the pandemic is contained. Henry led a review of the tax system in 2010, and he contends that its findings and recommendations are still relevant. Amongst other things, Henry advocates replacing the GST, payroll taxes and some state-based taxes with a new tax on business cash flow. He has also proposed phasing out stamp duties in favour of a land tax system.

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RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Stimulus package a big mistake, says Abbott’s former economist

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Original article by Adam Creighton
The Australian – Page: 6 : 23-Apr-20

The necessity of the federal government’s $194bn coronavirus stimulus package has been questioned by Andrew Stone, the chief economist of former prime minister Tony Abbott. Stone argues that the stimulus package – and the national lockdown – should be progressively wound back, given that the virus outbreak has not been as severe in Australia as had been feared. He has also criticised economists who have signed an open letter cautioning the federal government against easing lockdown restrictions too soon.

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US keeps eye on Australia’s big tech rules

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Original article by Jacob Greber
The Australian Financial Review – Page: 10 : 23-Apr-20

The US media industry has welcomed the Australian government’s move to require technology companies to pay news publishers for their content. Digital Content Next CEO Jason Kint says the mandatory code of conduct shows that the government recognises the significance of the problem and its impact on traditional media companies. News Media Alliance CEO David Chavern adds that there is growing concern across the political spectrum regarding the impact of digital platforms. The US Congress is also monitoring efforts in Australia and elsewhere to reign in the digital giants.

CORPORATES
DIGITAL CONTENT NEXT, NEWS MEDIA ALLIANCE, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION