AUSTRALIA – POLITICS AND GOVERNMENT

Proposed tax reforms a betrayal of small business

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Original article by Robert Gottliebsen
The Australian – Page: 25 : 28-Aug-19

Treasurer Josh Frydenberg has stressed the need for incentives for businesses to invest by reducing taxes and red tape. However, the federal government’s actions are in fact contrary to its stated intentions. Amongst other things, the Coalition proposes to make directors personally liable for their company’s GST payments and empower the Australian Taxation Office to freeze GST refunds. Likewise, the government wants to introduce criminal penalties for making cash payments of $10,000 or more to any company that has an Australian Business Number. While these measures have the worthy aim of cracking down on phoenix companies and the cash economy, the government’s approach to their implementation has been a complete disaster and could ensure its loss at the next election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Economic socialism cost Labor

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-Aug-19

Labor has come under intense scrutiny following its federal election loss on 18 May. Finance Minister Mathias Cormann has attributed the election defeat to Labor’s adoption of socialist economics, which prompted voters to overlook the Coalition’s own shortcomings. Cormann has also used a Sydney Institute speech to argue that Labor won the 2007 election because Kevin Rudd persuaded voters that he was an economic conservative in the same mould as John Howard, but Labor subsequently re-embraced the socialist left under treasurer Wayne Swan.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, SYDNEY INSTITUTE

Boris fast-tracks Aussie deal

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Original article by Simon Benson
The Australian – Page: 1 & 7 : 27-Aug-19

Prime Minister Scott Morrison has met with his British counterpart Boris Johnson during the G7 leaders’ summit in France. They discussed issues such as the US-China trade war, Brexit and the UK’s plans to increase its presence in the Asia-Pacific region. Morrison has also indicated that the two nations will act quickly to secure a free-trade agreement when Britain leaves the European Union. Britain is currently Australia’s eighth-largest trading partner and the second-largest source of direct foreign investment.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, GROUP OF SEVEN (G-7), UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

‘Political shocks turn into economic shocks’: RBA chief

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 26-Aug-19

Reserve Bank of Australia governor Philip Lowe has told the global monetary policy conference at Jackson Hole in Wyoming that the world is experiencing a period of major political shocks that are turning into economic shocks. Lowe also reiterated the need for governments to provide economic stimulus via infrastructure investment and structural reform, arguing that monetary policy alone is insufficient. Shadow treasurer Jim Chalmers says the federal government lacks a plan to turn around the Australian economy.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, BANK OF ENGLAND, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Federal debt boss: why borrowing isn’t easy

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Original article by Adam Creighton
The Australian – Page: 4 : 26-Aug-19

Australian Office of Financial Management CEO Rob Nicholl has rejected suggestions that the federal government’s capacity to increase its borrowings has been boosted by the downturn in bond yields. The yield on 10-year government bonds fell below the cash rate of one per cent earlier in August, and Nicholls argues that demand for government debt has not risen despite a global downturn in bond yields. The federal government is resisting pressure to ramp up its infrastructure spending instead of prioritising a return to a Budget surplus.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT

Treasurer tells CEOs: get positive

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 26-Aug-19

Treasurer Josh Frydenberg will use a Business Council of Australia speech on 26 August to stress the need for the corporate sector to take action to boost productivity and wages. He will argue that lifting the nation’s average annual rate of productivity growth from about 1.1 per cent at present to 1.5 per cent would boost the economy by $70bn over the next decade and increase real wages by four per cent. Frydenberg will also urge business leaders to increase capital investment, including in new technologies, rather than focusing on returning capital to investors via share buybacks and special dividends.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA

Top lawyers warn ASIC against hasty moves

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Original article by Hannah Wootton
The Australian Financial Review – Page: 33 : 23-Aug-19

Treasurer Josh Frydenberg recently indicated that the federal government aims to pass 40 pieces of legislation in response to the Hayne royal commission’s recommendations by the end of 2020. It wants 90 per cent of relevant legislation to be implemented by mid-2020. However, corporate lawyers have stated that problems could arise if the government and the Australian Securities & Investments Commission persist with their "ambitious deadlines" for implementing the commission’s recommendations.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

PM commits warship, planes to Gulf mission

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Original article by Geoff Chambers, Simon Benson, Ben Packham
The Australian – Page: 1 & 2 : 22-Aug-19

The federal government will join a US-led coalition that aims to protect oil tankers when passing through the Strait of Hormuz. The national security committee approved Australia’s participation on 19 August; the nation’s contribution to the coalition will include a frigate, a surveillance aircraft and 187 personnel. Prime Minister Scott Morrison has stressed the need to safeguard the nation’s oil supplies and to protect global sea lanes. He notes that 30 per cent of Australia’s refined oil passes through the Strait of Hormuz.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN DEFENCE FORCE, UNITED STATES. DEPT OF STATE, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, GROUP OF SEVEN (G-7), AUSTRALIAN LABOR PARTY

Push to include family home in pension test

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Original article by Michael Roddan
The Australian – Page: 4 : 21-Aug-19

The Actuaries Institute has published a discussion paper which examines a range of options for overhauling Australia’s retirement income system. The authors argue amongst other things that the federal government should consider measures such as including the family home in the pension assets test, the abolition part-pensions and the introduction of death duties. The paper also warns that Australia’s ageing population will put the federal Budget under growing pressure unless action is taken. The report was written by David Knox, Anthony Asher and Michael Rice.

CORPORATES
ACTUARIES INSTITUTE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, GRATTAN INSTITUTE

Australians should get used to US-China trade war as superpowers tussle for supremacy

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Original article by
News.com.au – Page: Online : 21-Aug-19

Prime Minister Scott Morrison has warned that the trade war between the US and China may continue for some, while noting that the ongoing trade tensions could create opportunities for Australia. Morrison has also told the Seven Network that due to its economic success, China must abide by the same rules as other nations. Morrison will shortly attend the Group of Seven leaders’ summit in France.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GROUP OF SEVEN (G-7)