AUSTRALIA – POLITICS AND GOVERNMENT

Company tax rate back on table

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 23-Apr-20

Deregulation, tax reform and changes to the industrial relations system are expected to be the federal government’s priorities when the coronavirus pandemic abates. The Coalition is of the view that the economy will need reforms of a similar magnitude to those implemented by the Hawke-Keating Labor government three decades ago. Treasurer Josh Frydenberg notes that Australia’s company tax rate remains high by global standards, although he has ruled out any changes to the GST at present. The government has also signalled its intention to revive the Ensuring Integrity Bill.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Buyers queue, Virgin could sell in two months

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Original article by Robyn Ironside
The Australian – Page: 1 & 4 : 22-Apr-20

Virgin Australia CEO Paul Scurrah says the embattled airline is not expecting to receive a federal government bail-out following its descent into voluntary administration. He adds that the government has rejected nine requests from Virgin for financial assistance, while Treasurer Josh Frydenberg notes that Virgin is controlled by five large foreign shareholders that have "deep pockets". Vaughan Strawbridge of Deloitte, who has been appointed as administrator of Virgin, believes that the carrier could be sold within 2-3 months. More than 10 potential buyers are said to have expressed interest in buying Virgin, including a number of overseas investors.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIA. DEPT OF THE TREASURY, DELOITTE TOUCHE TOHMATSU LIMITED

Miners seek assurance on fuel tax break

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 21-Apr-20

The resources sector is lobbying the federal government not to touch the diesel excise rebate as it looks at ways to repay the cost of the COVID-19 pandemic. The rebate is worth around $2 billion to the resources sector; it is also received by other industries, including fishing and agriculture. Minerals Council of Australia CEO Tania Constable contends that imposing higher taxes to pay for the cost of COVID-19 will harm jobs and curtail growth, while she notes that both the Henry tax review and Treasury are of the view that the fuel tax credit is sound economic policy.

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MINERAL COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Labor launches Senate push to reverse IR changes

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 5 : 21-Apr-20

Shadow industrial relations minister Tony Burke has questioned the need for reforms which reduce the amount of time employees are given to vote on proposed changes to workplace agreements from seven days to just one. The reform was prompted by the pandemic, but Burke argues that any such changes to enterprise agreements will remain in place after the coronavirus abates and will need to be removed via another vote by employees. Labor will put a disallowance motion to the Senate when parliament resumes, and it intends to seek the support of crossbenchers.

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AUSTRALIAN LABOR PARTY

No dirty tactics, ACCC tells tech giants

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Original article by Leo Shanahan
The Australian – Page: 1 & 8 : 21-Apr-20

Australian Competition & Consumer Commission chairman Rod Sims has warned that technology companies will face significant financial penalties if they fail to comply with the mandatory code of conduct. He adds that 8-14 per cent of Google’s search results include news stories, so the company is unlikely to block such content in response to the federal government’s decision to make digital platforms pay news publishers for their content. The ACCC has been given responsibility for developing the payment model.

CORPORATES
GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Coalition pressure to rescue Virgin

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Original article by Simon Benson, Sarah Elks
The Australian – Page: 1 & 2 : 20-Apr-20

It is understood that Virgin Australia could be placed into voluntary administration within days unless the federal government steps in to save the airline or it can be rescued by the private sector. Former Queensland premier Peter Beattie, who gave Virgin $10 million to base its headquarters in Brisbane in 2000, says the tourism sector would be "devastated" if the airline goes under. Federal Liberal MP Jason ­Falinski believes that Virgin needs to be kept afloat, and that the federal government and taxpayers may end up being the "buyer of last resort".

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, LIBERAL PARTY OF AUSTRALIA

BCA plan aims to accelerate recovery

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 20-Apr-20

The Business Council of Australia has developed a three-tier plan for restarting the domestic economy when coronavirus lockdown restrictions start to be eased. Amongst other things, the discussion paper proposes a gradual resumption of office-based work, with appropriate health and safety measures to protect workers. The BCA has also called for regulatory and industrial relations reforms to boost economic activity, while it says the focus of government assistance should shift to accelerating the economy rather than keeping it on ‘life support’.

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BUSINESS COUNCIL OF AUSTRALIA

Bipartisan call to investigate China’s role in spread of virus

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Original article by Richard Ferguson
The Australian – Page: 4 : 20-Apr-20

Foreign Minister Marise Payne has called for an independent investigation into how China and the World Health Organization handled the first stages of the COVID-19 pandemic, along with the role of China’s wet markets in the virus’s creation. Shadow health minister Chris Bowen says Labor would support such an investigation, while Peter Jennings from the Australian Strategic Policy Institute says the G20 might be an appropriate body to conduct the type of investigation that the federal government is calling for.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, WORLD HEALTH ORGANIZATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, GROUP OF TWENTY (G-20)

Big tech made to pay for news

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 6 : 20-Apr-20

The Australian Competition & Consumer Commission has been directed to set up a mandatory code of conduct under which Google and Facebook will be required to pay news publishers for using their content. Treasurer Josh Frydenberg says it is only reasonable that those who create content are rewarded for it. Facebook and Google had initially been directed to set up a voluntary code of conduct for content payment by November, but the two technology companies had been accused by media firms of not genuinely engaging in negotiations on the issue. Nine Entertainment CEO Hugh Marks has praised the government for taking "taking swift and decisive action" on the issue.

CORPORATES
FACEBOOK INCORPORATED, GOOGLE INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

PM flags business growth plan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 17-Apr-20

Prime Minister Scott Morrison has told a meeting of the national cabinet that pro-growth economic policy measures will be required in the post-coronavirus environment. He has stressed that business rather than government will lead the economic recovery, so there will be a need for policies that encourage employers to invest in their business and to hire people. Morrison has also raised the prospect that some of the policies that the Coalition took to the May 2019 election might need to be shelved. Business Council of Australia CEO Jennifer Westacott has expressed support for Morrison’s pro-business focus.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA