AUSTRALIA – POLITICS AND GOVERNMENT

Bond investors like Labor’s franking cut

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Original article by John Kehoe
The Australian Financial Review – Page: 5 : 7-Nov-18

The Federal Opposition’s plan to abolish cash refunds for excess dividend imputation credits if it wins the next election has widespread support among bond fund managers. Elizabeth Moran of FIIG Securities says the dividend imputation system has prompted many investors to be highly exposed to risker asset classes; she notes that while bonds offer lower yields, they also offer less volatility. Australian Securitisation Forum CEO Chris Dalton agrees that Labor’s policy will make bonds more attractive to investors.

CORPORATES
AUSTRALIAN LABOR PARTY, FIIG SECURITIES LIMITED, AUSTRALIAN SECURITISATION FORUM, REALM INVESTMENT MANAGEMENT PTY LTD, AUSTRALIAN TAXATION OFFICE, ALTIUS ASSET MANAGEMENT PTY LTD, PLATO INVESTMENT MANAGEMENT LIMITED, AUSTRALIAN STOCK REPORT LIMITED, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Investor hit: Labor seats in crossfire

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 7-Nov-18

The federal government’s analysis of income and tax data for 2015-16 shows that 1.3 million Australians owned a negatively-geared investment property during that financial year. Some 640,000 people lived in seats held by the Coalition, while 570,000 were in seats held by Labor. Two Labor-held seats in the Australian Capital Territory had the highest number of people who used negative gearing. Treasurer Josh Frydenberg says Labor’s proposed changes to the negative gearing regime will hit not only its own supporters, but all Australians who own a home.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, RESERVE BANK OF AUSTRALIA, RISKWISE

Payne’s trip ends Chinese freeze

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Original article by Glenda Korporaal
The Australian – Page: 1 & 2 : 6-Nov-18

Australia’s Foreign Minister Marise Payne will meet with her Chinese counterpart Wang Yi during a two-day visit to Beijing from 8 November. The trip is part of efforts to improve the strained relations between the two nations, and could potentially lead to an official trip to China by Prime Minister Scott Morrison. Payne and Wang had held talks during a United Nations conference in August, which led to the invitation for Payne to visit China.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CHINA. MINISTRY OF COMMERCE, ASIA-PACIFIC ECONOMIC CO-OPERATION

Eligibility case to test Morrison minority

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Original article by Rosie Lewis, Ben Packham
The Australian – Page: 1 & 4 : 6-Nov-18

The federal government’s loss of its majority in the House of Representatives means it will require the support of at least one lower house crossbencher to pass bills. However, some crossbenchers have requested access to legal advice on the eligibility of Liberal MP Chris Crewther to be in Parliament, amid speculation that they may seek a motion to have his case referred to the High Court. There are concerns that Crewther’s investment in Gretals Australia may breach the Constitution, given that the pharmaceutical company has benefited from taxpayer-funded research grants.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, GRETALS AUSTRALIA PTY LTD, UNIVERSITY OF MELBOURNE, AUSTRALIAN RESEARCH COUNCIL, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, HIGH COURT OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Labor flags the end of Work for Dole

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Original article by Eryk Bagshaw
The Age – Page: 8 : 2-Nov-18

Labor’s employment services spokeswoman Terri Butler has queried whether the $65 million spent each year on the "Work for the Dole" program is money well spent. There are claims that the program does not have a high success rate in terms of participants finding jobs, and that participants have been put into unsafe workplaces. As well as signs that Labor may scrap the scheme if it wins the next federal election, there are indications that it may cancel employment services contracts under the federal government’s $7.3 billion Jobactive program.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL EMPLOYMENT SERVICES ASSOCIATION, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS

Coalition MP on brink

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Original article by James Campbell
Herald Sun – Page: 1 & 6 : 2-Nov-18

Liberal MP Chris Crewther could be referred to the High Court over concerns that his investment in pharmaceutical company Gretals Australia may breach Section 44 of the Constitution. Gretals has received direct grants from the federal government, as well as linkage grants. Home Affairs Minister Peter Dutton has also been under scrutiny over claims that his pecuniary interest in a childcare centre may breach the Constitution. The federal government would have 74 seats in the lower house if Crewther is disqualified.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, GRETALS AUSTRALIA, AUSTRALIA. DEPT OF HOME AFFAIRS, HIGH COURT OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Legacy war: Turnbull threat to haunt ScoMo

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Original article by Simon Benson, Primrose Riordan, Ben Packham
The Australian – Page: 1 & 4 : 2-Nov-18

Tensions between Prime Minister Scott Morrison and predecessor Malcolm Turnbull have increased in the wake of the latter’s recent visit to Indonesia. Morrison was forced to retract comments he made in a radio interview on 1 November; he said that Turnbull had not been asked to discuss trade and the possible relocation of Australia’s embassy in Israel during meetings with Indonesian officials, but Turnbull responded by stating that he had been asked to do so. Turnbull has also signalled that he will publicly defen­d his record as prime minister. Liberal Party of Victoria president Michael Kroger has called on Morrison and Turnbull to present a unified front.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, LIBERAL PARTY OF VICTORIA, AUSTRALIA. DEPT OF HOME AFFAIRS, HIGH COURT OF AUSTRALIA

Petrol: PM’s tough talk won’t work

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Original article by Phillip Coorey, Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 4 : 31-Oct-18

The average price of unleaded petrol has risen to a 10-year high of more than $1.60 per litre. Prime Minister Scott Morrison has flagged government intervention to put downward pressure on prices. However, he says it is ultimately up to petrol companies to "do the right thing". Caltex argues that the high crude oil price and the low Australian dollar are the main drivers of the spike in petrol prices. It adds that the government’s fuel excise tax of $0.412 a litre is also a major contributor, but government sources have ruled out an excise tax cut.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CALTEX AUSTRALIA LIMITED – ASX CTX, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LIBERAL PARTY OF AUSTRALIA, VERTIUM ASSET MANAGEMENT PTY LTD, AUSTRALIAN INSTITUTE OF PETROLEUM LIMITED

Greens in push to slug rich to boost the dole

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Original article by Adam Creighton
The Australian – Page: 2 : 30-Oct-18

Greens leader Richard Di Natale will announce plans to impose a minimum tax rate of 35 per cent on earnings in excess of $300,000 a year. The proposal, which has been costed by the Parliamentary Budget Office, would raise around $10.5 billion a year, with the funds raised to be used to increase unemployment benefits by $75 per week. The Greens are also seeking to revive Labor’s failed super-profits tax on mining companies.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY

Spy chief says Huawei a threat to key infrastructure

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Original article by Angus Grigg, Nick McKenzie
The Australian Financial Review – Page: 1 & 2 : 30-Oct-18

The federal government’s decision in August to ban "high-risk vendors" from building a 5G mobile network has been backed by Mike Burgess, the director-general of the Australian Signals Directorate. He says Australia’s critical infrastructure such as power and water networks would not have been able to be properly protected if such vendors had been allowed to build the 5G network. Although he did not mention them by name, it is assumed that Burgess was referring to Chinese firms Huawei and ZTE. Meanwhile, the Australian Strategic Policy Institute has expressed concern about the level of collaboration between Australian universities and Chinese military scientists.

CORPORATES
AUSTRALIAN SIGNALS DIRECTORATE, HUAWEI TECHNOLOGIES COMPANY LIMITED, ZTE CORPORATION, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, SINGTEL OPTUS PTY LTD, VODAFONE AUSTRALIA LIMITED, UNIVERSITY OF NEW SOUTH WALES