AUSTRALIA – POLITICS AND GOVERNMENT

Foreign buyers to be banned from purchasing existing homes

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Original article by Remy Varga
Herald Sun – Page: Online : 26-Mar-25

The budget papers show that the federal government will impose a two-year ban on foreigners buying established homes, with the policy slated to take effect from 1 April. The budget has allocated $5.7m for the Australian Taxation Office to enforce the ban, while the ATO will be given $8.9m to crack down on ‘land banking’ by foreign buyers. The government will also expand the Help to Buy shared equity scheme for home buyers, and provide eligible construction industry apprentices with grants of up to $10,000 as part of its strategy to address the skills shortage that is contributing to the housing crisis.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Conservative commodity price forecasts offer revenue windfall

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Original article by Perry Williams
The Australian – Page: 27 : 26-Mar-25

The budget papers show that the Treasury is continuing to adopt a conservative approach to commodity price forecasts. The budget’s revenue forecasts are based on expectations that the iron ore price will fall to $US60 per tonne at port by the end of March 2026; the price of the steel input is currently trading at around $US100 per tonne. UBS recently forecast that the iron ore price will remain within a range of $US90 to $US100/tonne for the next five years. The Treasury’s forecasts for other key commodities such as coal and LNG are also significantly below current prices.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD

Tariff war impact ‘modest’: Treasury

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Original article by Matthew Cranston
The Australian – Page: 2 : 26-Mar-25

The budget papers show that Australia is now expected to record economic growth of just 1.5 per cent in 2025, compared with forecasts of two per cent growth in the 2024 budget and 1.75 per cent growth in the mid-year economic and fiscal outlook in December. Treasurer Jim Chalmers has conceded that the Trump administration’s tariffs policy will have a slight impact on Australia’s economic growth. The Treasury’s modelling suggests that the combined direct and indirect impact of the tariffs on the Australian economy by 2030 is likely to be modest.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

$17b tax cut sparks poll fight

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Original article by Phillip Coorey
The Australian Financial Review – Page: Online : 26-Mar-25

Shadow treasurer Angus Taylor has accused the federal election of an election bribe after it used the 2025 budget to announce a tax cut. The cut will see the 16 per cent tax rate, which applies to workers earning between $18,201 and $45,000, reduced to 15 per cent from 1 July 2026, with the rate then being cut to 14 per cent from 1 July 2027; all up, the cuts will save workers in that earning bracket $536 a year and will be worth $17.1 billion over five years. Taylor said the Opposition would not support the proposed tax cuts, while the budget forecasts a deficit of $27.6 billion for this financial year, increasing to $42 billion in 2025-26.

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Liberal backbenchers urge Coalition not to raid foreign aid budget to pay for rumoured $15bn defence boost

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Original article by Henry Belot
The Guardian Australia – Page: Online : 25-Mar-25

Recent media reports suggested that the Coalition may be open to increasing defence expenditure by at least $15bn a year if it wins the federal election. Some Liberal MPs have expressed concern that funding may be redirected from foreign aid to boost defence spending. A Liberal backbencher has warned that China may step in to fill the funding void if Australia were to reduce foreign aid to its neigbours in the Pacific region. The UK government recently opted to reduce foreign aid in order to increase defence spending, while the Trump administration has paused foreign aid.

CORPORATES
LIBERAL PARTY OF AUSTRALIA

Top-heavy bureaucracy needs efficiency, not cuts

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Original article by Ewin Hannan
The Australian – Page: 4 : 25-Mar-25

Public Service Minister Katy Gallagher believes that the federal public service is "roughly the right size now", at about 209,000 people. A former head of the Australian Public Service Commission, Andrew Podger, agrees that the number of public servants is "probably about right". However, he says there are inefficiencies in the public service that must be addressed; amongst other things, Podgers contends that the number of deputy secretaries is too high, while some bureaucrats are paid too much. The federal government has increased the public service head count by about 36,000 since taking office in May 2022.

CORPORATES
AUSTRALIAN PUBLIC SERVICE COMMISSION

Coalition denies plans to slash NDIS, but says cost is out of control

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Original article by Sarah Basford Canales
The Guardian Australia – Page: Online : 25-Mar-25

The National Disability Insurance Scheme’s growth rate is forecast to reach 12 per cent in 2024-25, before falling in the next two financial years. The national cabinet agreed to cap the scheme’s growth rate at eight per cent by mid-2026, but shadow NDIS minister Michael Sukkar says Labor is missing the targets it has set. Meanwhile, shadow public service minister Jane Hume contends that more can be done to reign in the scheme’s growth, arguing that its cost is out of control. NDIS Minister Amanda Rishworth says the Liberals cannot be trusted with the NDIS, and she has urged the party to reveal the cuts it plans to make if it wins the upcoming federal election.

CORPORATES
AUSTRALIA. DEPT OF SOCIAL SERVICES, LIBERAL PARTY OF AUSTRALIA

Roy Morgan Poll: ALP holds election winning lead pre-Budget despite small swing to Coalition this week: ALP 53% cf. L-NP 47%

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Original article by Roy Morgan
Market Research Update – Page: Online : 25-Mar-25

If a Federal Election were held now the ALP would be returned to Government with an increased majority with the ALP on 53% (down 1.5% from a week ago) ahead of the L-NP Coalition on 47% (up 1.5%) on a two-party preferred basis, the latest Roy Morgan survey finds. Roy Morgan Government Confidence dropped 4.5 points to 80 with only 32.5% (down 2.5%) of Australians saying the country is ‘going in the right direction’ compared to 52.5% (up 2%) that say the country is ‘going in the wrong direction’. Primary support for both major parties increased with the Coalition up 1.5% to 35.5% and the ALP up 1% to 33.5%. Support for the Greens dropped 1% to 12.5%, One Nation was down 1% to 4%, Other Parties were unchanged at 4.5% and Independents were down 0.5% to 10%.

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

ALP’s fiscal reckoning

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Original article by Geoff Chambers, Matthew Cranston
The Australian – Page: 1 & 4 : 25-Mar-25

Treasurer Jim Chalmers says the federal budget is in much better shape than when Labor took office in May 2022. He adds that tonight’s budget will help to "finish the fight against inflation" and ease the cost-of-living crisis. The budget papers are expected to show that gross debt will total $940bn in 2024-25, which equates to about 36 per cent of GDP; this compares with the forecast of 35.2 per cent in the 2024 budget. Chalmers has emphasised Labor’s economic credentials, noting that it has delivered two surpluses in its first term and reduced the former Coalition government’s debt by $177bn. However, the budget will be in deficit for 2024-25, and Chalmers has conceded that it is unlikely to return to surplus for at least a decade.

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Border dodgers’ criminal rampage: Cost to Aussies is $100m

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Original article by Remy Varga
Herald Sun – Page: Online : 5-Mar-25

Data from the Department of Home Affairs shows that 291 former immigration detainees have now been released since the High Court’s landmark NZYQ ruling. The figures also show that 90 former detainees have been charged with various offences by state and territory authorities since their release; 17 have been given new custodial sentences and five have received suspended sentences. Meanwhile, the former detainees – all of whom have criminal records in Australia – have now cost taxpayers more than $100m since they were released into the community. This includes $73.7m on operational costs, $24.3m on administration costs and $18.6m worth of legal fees. The ex-detainees are also receiving government payments of up to $1,000 each fortnight.

CORPORATES
AUSTRALIA. DEPT OF HOME AFFAIRS, HIGH COURT OF AUSTRALIA