AUSTRALIA – POLITICS AND GOVERNMENT

Unease stirs inside Labor on super tax

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 14-May-25

Treasurer Jim Chalmers has confirmed that the federal government intends to proceed with legislation to double the tax rate on superannuation balances exceeding $3m and introduce a tax on unrealised capital gains. Some Labor MPs have expressed concern about the proposed superannuation tax changes, noting that the reforms had generated a lot of negative feedback at polling booths on election day. Independent MP Allegra Spender says that although Labor now has a mandate for superannuation tax reform. she contends that it is "bad policy" and should be reconsidered.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

‘Extreme, divisive politics’: Greens’ near-total wipe-out

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Original article by Clare Armstrong
Herald Sun – Page: Online : 8-May-25

Sky News and the ABC have both declared that Labor’s Sarah Witty has won the seat of Melbourne, which Greens leader Adam Bandt has held since 2010. However, a Greens spokeswoman has stated that the minor party has yet not conceded defeat in the previously safe seat, arguing that "many thousands of votes" have not yet been counted. The Greens are hopeful that more than 15,000 absentee and declaration votes will favour Bandt. Commenting on Bandt’s defeat, a Labor source said "he’ll blame Labor, he’ll blame the Liberals, he’ll blame voters, but he’ll never blame himself". The Greens went into the federal election with four MPs in the lower house, but Stephen Bates and Max Chandler-Mather have also lost their seats and Elizabeth Warren-Brown’s seat of Ryan in Queensland is in doubt. Greens senators Sarah Hanson-Young and Mehreen Faruqi are believed to be the frontrunners to succeed Bandt.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY

Liberal MPs urge unity leadership ticket as Abbott questions conviction

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Original article by Sarah Ison, Jack Quail
The Australian – Page: 5 : 8-May-25

Liberal Party insiders contend that an increasingly acrimonious leadership contest is undermining efforts to rebuild in the wake of Saturday’s election rout. Sussan Ley, Dan Tehan and Angus Taylor are expected to be in contention to succeed Peter Dutton as Opposition leader. Supporters of Ley have rejected claims that she has offered prime shadow cabinet portfolios in exchange for votes in a leadership ballot. A number of Liberal MPs have called for Ley and Tehan to run on a ‘unity ticket’, with some suggesting that the latter would garner enough support to be deputy leader but not enough to take the top job. Meanwhile, former prime minister Tony Abbott says the Liberals’ leadership has lacked "courage and conviction" in recent times.

CORPORATES
LIBERAL PARTY OF AUSTRALIA

Labor to push ahead on super tax

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Original article by Phillip Coorey, Sumeyya Ilanbey
The Australian Financial Review – Page: 1 & 4 : 8-May-25

The federal government has indicated that reducing the higher education debt of students and graduates by $16bn with be its first legislative priority for its second term in office. Labor has also reaffirmed its commitment to superannuation reform, including the controversial tax on unrealised capital gains. The reforms had been intended to take effect on 1 July but were rejected by the Senate earlier in 2025 due to opposition from a number of crossbenchers; however, they will be sidelined in the new Senate given that Labor and the Greens will have a majority in the upper house.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Government debt could hit $1trn by September

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Original article by Michael Read
The Australian Financial Review – Page: 4 : 8-May-25

Data from the Australian Office of Financial Management shows that the federal government’s gross debt is currently about $929bn. Micaela Fuchila, the chief economist at investment bank Jarden, has forecast that the nation’s gross debt will reach $1trn in either September or October of this year. The Treasury in turn expects the government’s net debt – which excludes the value of financial assets such as the Future Fund – to reach $556bn by June. S&P Global recently warned that Australia’s coveted AAA credit rating may be at risk if federal election spending promises are funded via debt rather than revenue or cost savings.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, JARDEN AND COMPANY, S&P GLOBAL INCORPORATED

Liberals revolt over policy failures

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Original article by Sarah Ison, Jack Quail
The Australian – Page: 1 & 4 : 7-May-25

Sources within the Liberal Party have indicated that many of its policies were either not released or delayed for so long that they had no impact on the federal election. They include policies in key areas such as defence, taxation, education, health and the environment. Meanwhile, Sussan Ley is now widely regarded as the frontrunner to replace Peter Dutton as Opposition leader; advocates for Ley contend that she could boost support among female voters who have become disillusioned with the Liberal Party.

CORPORATES
LIBERAL PARTY OF AUSTRALIA

Albanese to dole out an extra ministry to the Left after landslide win

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Original article by David Crary, James Massola
The Age – Page: Online : 7-May-25

Labor’s expanded caucus is set to meet on Friday to decide which MPs and senators will be in the new ministry, although Prime Minister Anthony Albanese will allocate portfolios next week. Labor’s left faction is set to gain an additional seat in the ministry after gaining about 12 seats in the federal election, while the Victorian Right faction will also push for increased representation in the ministry. The Left faction is set to outnumber the Right in Labor’s caucus, which is set to increase to at least 110, compared with 103 before the election.

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

Stokes slams ALP’s super tax hit

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Original article by Perry Williams, Jared Lynch, David Ross
The Australian – Page: 13 & 15 : 7-May-25

SGH Limited’s CEO Ryan Stokes has criticised the federal government’s proposal to tax the unrealised capital gains of superannuation funds. Stoke contends that while taxing profits is "entirely reasonable", taxing unrealised capital gains is dangerous and sets a far-reaching and concerning precedent, while it could also distort markets. The tax would initially apply to super accounts with a balance of more than $3m, but Stokes warns that it could potentially be extended to other asset classes. The Greens have advocated lowering the threshold to $2m, while the fact that the tax will not be indexed to inflations means that it will progressively apply to more people.

CORPORATES
SGH LIMITED – ASX SGH, AUSTRALIAN GREENS

PM urged to adopt 2035 emissions reduction target of 70pc

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Original article by Greg Brown
The Australian – Page: 1 & 4 : 7-May-25

The federal government will decide its 2035 emissions reduction target later this year, based on advice from the Climate Change Authority. However, the Labor Environment Action Network’s convener Felicity Wade says the group wants the 2035 target to be at least 70 per cent lower than 2005 emission levels. Wade adds that the environment must be a top priority for Labor’s second term in office, while LEAN wants the government’s ­nature positive laws to be legislated within 12 months. There are already doubts as to whether Labor’s 2030 emissions reduction target is achievable.

CORPORATES
AUSTRALIAN LABOR PARTY, LABOR ENVIRONMENT ACTION NETWORK

$250bn GDP forgone on weaker growth

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Original article by Matthew Cranston
The Australian – Page: 1 & 6 : 30-Apr-25

Australia’s productivity growth has averaged just 0.2 per cent a year over the last decade. The Coalition has committed to a new productivity growth target of 1.5 per cent a year if it wins the election on Saturday. In contrast, Labor’s first budget in 2022 included the assumption that productivity growth would average 1.2 per cent over the long-term. The Coalition contends that annual GDP would be about $250bn higher if productivity had grown at this pace, while annual tax revenue would have been $50bn higher.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA