AUSTRALIA – POLITICS AND GOVERNMENT

Morrison defends his climate policy as cost free

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Original article by Simon Evans, Phillip Coorey
The Australian Financial Review – Page: 5 : 3-May-19

Prime Minister Scott Morrison says the Coalition can achieve its carbon emissions reduction target without hurting the economy. Morrison contends that this is because the cost of doing so will be borne by taxpayers. His claims are at odds with modelling undertaken by economist Brian Fisher, who says the Coalition’s climate policy will impose some cost on the economy, although not as much as Labor’s policy. Labor’s climate spokesman Mark Butler claims that Fisher’s assumptions are grossly flawed.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, CITIGROUP PTY LTD, SANTOS LIMITED – ASX STO, AUSTRALIAN NATIONAL UNIVERSITY

Unions to face wait for pay reforms

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Original article by Ewin Hannan
The Australian – Page: 4 : 3-May-19

Shadow workplace relations minister Brendan O’Connor has indicated that Labor will consult all stakeholders regarding its plan to reinstate industry-wide enterprise bargaining. Senior Labor sources have suggested that the extensive consultation that will be required means the reforms are likely to be delayed for at least a year if Labor wins the federal election. Law professor Andrew Stewart says Labor is wise to delay such reforms given the large number of items on its policy agenda. Labor intends to prioritise reforms such as restoring penalty rates.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF ADELAIDE, AUSTRALIA. FAIR WORK COMMISSION

Coalition faces hostile Senate if it wins

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 2-May-19

A re-elected Coalition government could require the support of the Greens to pass legislation in the Senate, depending on the number of crossbenchers in the upper house from 1 July. Its income tax cuts in particular would be in doubt, given the Greens’ opposition to the package. The government proposes to reconvene parliament before 30 June to capitalise on a crossbench that is likely to be more favourable to its tax cuts than the new Senate. Greens leader Richard Di Natale favours tax increases rather than tax cuts.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, THE AUSTRALIA INSTITUTE LIMITED

Price carbon cuts? Yes you can

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Original article by Simon Benson
The Australian Financial Review – Page: 1 & 4 : 2-May-19

Independent modelling has concluded that GDP growth could be reduced by a cumulative $264bn by 2030 if Labor’s carbon emissions reduction policy includes unlimited access to international carbon credits. This could rise to around $1.2bn if the use of foreign carbon credits is restricted or banned. The modelling is outlined in a new report by former bureaucrat Brian Fisher, which will be released on 2 May. Labor’s climate change spokesman Mark Butler has previously argued that its emissions reduction policy cannot be costed.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS AND SCIENCES, INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE, AUSTRALIAN GREENS

Aged care next for a pay rise from taxpayers

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Original article by Ewin Hannan
The Australian – Page: 4 : 1-May-19

Opposition Leader Bill Shorten says Labor has no plans to extend its taxpayer-funded pay rise for childcare workers to other low-paid sectors. He says the policy takes into account the "unique" status of childcare workers. However, Council on the Ageing CEO Ian Yates says increasing the wages of aged-care staff should also be a priority for Labor if it wins the election, noting that they are also underpaid and undertrained. Shorten has signalled that Labor could look at wage increases for these workers after the aged-care royal commission delivers its final report in April 2020.

CORPORATES
AUSTRALIAN LABOR PARTY, COUNCIL ON THE AGEING, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. ROYAL COMMISSION INTO AGED CARE QUALITY AND SAFETY

State revenues under threat: PM

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Original article by Primrose Riordan, Ben Packham, Ben Wilmot
The Australian – Page: 6 : 1-May-19

Prime Minister Scott Morrison says Labor’s proposed changes to the negative gearing and capital gains tax regimes could result in lower GST and stamp duty revenue for state governments. He added that the states should seek a guarantee from Labor that its reforms would not affect their revenue. Shadow treasurer Chris Bowen in turn has blamed the Coalition for the housing market downturn, which has reduced state governments’ stamp duty revenue.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, REAL ESTATE INSTITUTE OF WESTERN AUSTRALIA, STOCKLAND – ASX SGP, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, HOUSING INDUSTRY ASSOCIATION LIMITED, MASTER BUILDERS AUSTRALIA INCORPORATED

Greens stir Gillard ghosts

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Original article by Rosie Lewis
The Australian – Page: 1 & 4 : 1-May-19

Australian Greens leader Richard Di Natale will use a National Press Club speech on 1 May to urge Labor to form a coalition with the minor party to address the issue of climate change. Former prime minister Julia Gillard struck a similar alliance with the Greens to form a minority government after the 2010 election. The Greens have questioned Labor’s proposal to use international carbon credits as part of its target of reducing carbon emissions by 45 per cent on 2005 levels by 2030.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED AUSTRALIA PARTY, NATIONAL PARTY OF AUSTRALIA, ONE NATION PARTY, INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE, NATIONAL PRESS CLUB (AUSTRALIA)

Climate policy impossible to cost: ALP

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 1-May-19

Labor’s climate change spokesman Mark Butler says it cannot estimate how much its carbon emissions reduction policy will cost the business sector. He argues that this is because Labor will not impose a direct carbon price on businesses. However, the Coalition claims that Labor’s policy would cost businesses between $27.5bn and $35bn. A senior industry economist argues that the lack of detail regarding Labor’s policy means that no accurate estimate of its cost can be made prior to the election.

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

Parties locked in close contest for second week: ALP 51% cf. L-NP 49%

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Apr-19

For the second straight week the Roy Morgan Poll shows the two major parties locked in a tight contest with a slight edge to the ALP 51% cf. L-NP 49% on a two-party preferred basis, according to a face-to-face survey conducted on the weekend of April 27/28, 2019 with a representative cross-section of 826 Australian electors. Both major parties managed to increase their primary votes this week at the expense of Pauline Hanson’s One Nation, but there was no change to the close overall two-party preferred result ahead of the first Leaders’ Debate between Prime Minister Scott Morrison and Opposition Leader Bill Shorten in Perth. The L-NP primary vote was up 0.5% to 39.5% from a week ago compared to the ALP on 36% (up 0.5%). Support for the Greens was unchanged at 9.5% while support for One Nation fell 2% to 2.5%. Support for Clive Palmer’s United Australia Party (UAP) was unchanged on 2% while support for Independents/Others was up 1% to 10.5%.

CORPORATES
MORGAN POLL, ROY MORGAN LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, ONE NATION PARTY, UNITED AUSTRALIA PARTY

Politicians silent on inflation target change

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Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 30-Apr-19

The need for the Reserve Bank’s inflation target continues to attract scrutiny, given that inflation remains well below its target range of 2-3 per cent. Warren Hogan and David Bassanesse are among the economists who believe that the central bank should revise its inflation target, although Westpac’s Bill Evans argues that doing so would have an impact on inflation expectations. Treasurer Josh Frydenberg and shadow treasurer Chris Bowen have declined to comment on the prospect of government intervention regarding the inflation target after the federal election.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF TECHNOLOGY, SYDNEY, BETASHARES CAPITAL LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AMP CAPITAL INVESTORS LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB