AUSTRALIA – POLITICS AND GOVERNMENT

Slide in wages could risk tax cuts, surplus

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Original article by Matthew Cranston
The Australian Financial Review – Page: 9 : 10-Dec-19

The Wage Price Index growth rate for 2019-20 is forecast to be 2.75 per cent, but wages increased by just 2.2 per cent in the September quarter. Westpac economist Bill Evans expects the federal government to downgrade its wage growth forecast in the mid-year budget update; he warns that this in turn may affect the size of the surplus and the Coalition’s ability to bring forward the second stage of its income tax cuts package. Evans notes that the price of iron ore is trading well above the government’s forecasts, which will help offset any revenue shortfall from slowing wages growth.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, DELOITTE ACCESS ECONOMICS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, AUSTRALIA. DEPT OF FINANCE

Labor MP pushes industry bargaining to fix IR system

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 10-Dec-19

Labor senator Tim Ayres says Australia’s long period of sustained economic growth has led to complacency with regard to industrial relations. He argues that factors such as low wages growth and the decline in enterprise bargaining means Labor needs to rethink its policy on IR. Ayres adds that Labor should consider the sector-wide bargaining model of Scandinavian countries. Former Labor leader Bill Shorten had flagged a shift to sector-wide bargaining, although employer groups warned that it would lead to the levels of industrial unrest of the 1970s.

CORPORATES
AUSTRALIAN LABOR PARTY, UNITED WORKERS UNION, THE AUSTRALIAN INDUSTRY GROUP

Leaders say fiscal stimulus is the answer

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Original article by James Thomson, Tony Boyd
The Australian Financial Review – Page: 13 & 27 : 10-Dec-19

Tax cuts and increased spending on infrastructure are among the suggestions from business leaders to help stimulate the Australian economy. Rio Tinto CEO Jean-Sebastien Jacques has urged the federal government to revive its push for corporate tax relief, while Woodside Petroleum CEO Peter Coleman has called for the introduction of an investment allowance to boost business confidence. Meanwhile, Telstra CEO Andy Penn has stressed the importance of innovation to Australia’s future economic growth.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, TELSTRA CORPORATION LIMITED – ASX TLS, COCA-COLA AMATIL LIMITED – ASX CCL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, ENERGYAUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SEEK LIMITED – ASX SEK, AUSTRALIA. DEPT OF THE TREASURY

New heart drives Morrison agenda

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Original article by Simon Benson, Geoff Chambers
The Australian – Page: 5 : 9-Dec-19

A senior Coalition source has indicated that a streamlined Expenditure Review Committee is now the ‘heart of government’. The source claims that the federal government’s major decisions and broad economic strategies are made by the ERC, and it now comprises just six permanent members, including Prime Minister Scott Morrison and Treasurer Josh Frydenberg. Meanwhile, some cabinet ministers have highlighted the extremely close relationship between Morrison and Frydenberg.

CORPORATES
AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Wages growth Labor’s priority

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Original article by Patrick Commins
The Australian – Page: 7 : 6-Dec-19

Shadow treasurer Jim Chalmers will urge the federal government to address issues such as low wages growth, underemployment and falling productivity in its mid-year economic outlook. He will tell a Chifley Research Centre conference that the economy is not working for ordinary Australians, while warning of the dangers associated with the rise of populism. Chalmers will also emphasise the need for Labor to reengage Australians in the ‘politics of progress’ in the wake of its election defeat in May.

CORPORATES
AUSTRALIAN LABOR PARTY, CHIFLEY RESEARCH CENTRE

PM strong-arms union busting bill into Senate

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Original article by Joe Kelly, Olivia Caisley
The Australian – Page: 7 : 6-Dec-19

The House of Representatives voted 75-65 to pass the Ensuring Integrity Bill on 5 December, after the federal government used its numbers to get the legislation through the lower house without any debate. The move was criticised by Labor leader Anthony Albanese, who accused the government of attempting to avoid scrutiny. The bill will return to the Senate when parliament resumes in 2020, after having been voted down by the upper house in late November.

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

Services won’t improve, says union

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Original article by Rosie Lewis
The Australian – Page: 6 : 6-Dec-19

The Community & Public Sector Union has criticised the federal government’s decision to streamline the bureaucracy. CPSU national secretary Melissa Donnelly warns that reducing the number of government departments will do nothing to improve the provision of government services. Donnelly notes that the Coalition has axed 18,908 public service jobs since it gained office in 2013, and she has urged the government to lift the average staffing level cap.

CORPORATES
COMMUNITY AND PUBLIC SECTOR UNION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Get lean: PM wields the axe

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Original article by Simon Benson, Geoff Chambers
The Australian – Page: 1 & 6 : 6-Dec-19

The Coalition has reduced the number of federal government departments from 18 to 14 as part of a broader overhaul of the public service. Amongst other things, the Department of Communications will be merged with the infrastructure portfolio, while the energy and resources portfolio will be folded into the industry and science portfolio. Five departmental secretaries will be retrenched as a result of the overhaul, while sources have indicated that the Coalition also intends to slash the number of government agencies.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, COMMUNITY AND PUBLIC SECTOR UNION

PM rebuffs claims of asylum deal

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Original article by Rosie Lewis
The Australian – Page: 1 & 5 : 5-Dec-19

A bill to repeal the controversial medivac laws was passed by the Senate 37-35 on 4 December, after independent senator Jacqui Lambie sided with the federal government. Prime Minister Scott Morrison had held talks with Lambie several times in recent weeks, but he has refuted suggestions that the Coalition cut a deal to secure her support. Lambie in turn has declined to reveal the nature of the proposals she had put to the government, citing national security concerns.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, CENTRE ALLIANCE, AUSTRALIA. DEPT OF HOME AFFAIRS

Economy lifts but spending at GFC levels

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Original article by Patrick Commins
The Australian – Page: 4 : 5-Dec-19

Australia’s GDP growth for the September quarter was slightly below economists’ forecasts at 0.4 per cent, while the economy grew by 1.7 per cent year-on-year. The national accounts data also shows that consumer spending increased by just 0.1 per cent during the quarter, which is its lowest rate of growth since the global financial crisis. Meanwhile, the household savings rate rose from 2.7 per cent to 4.8 per cent. Treasurer Josh Frydenberg has welcomed the GDP data, but shadow treasurer Jim Chalmers has renewed Labor’s call for economic stimulus.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS