AUSTRALIA – POLITICS AND GOVERNMENT

Treasurer’s fix ends GST battle

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Original article by Ben Packham
The Australian – Page: 1 & 2 : 6-Jul-18

Shadow treasurer Chris Bowen has criticised the Federal Government’s proposal to provide the states and territories with top-up goods and services tax payments. Treasurer Scott Morrison said the GST payments will be funded via consolidated revenue, but Bowen has warned that the government could potentially reduce funding for hospitals and schools to finance the deal. The states are expected to endorse the changes, which aim to ensure that each state’s share of GST revenue does not fall below $0.75 in the dollar.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. THE TREASURY

Call for tougher penalties to stop trade secret theft

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 5-Jul-18

The federal government’s new espionage and foreign interference impose criminal penalties for theft of trade secrets on behalf of foreign interests. However, Australian Industry Group CEO Innes Willox argues that more legislative action is needed to protect against the domestic theft of commercial trade secrets. Clayton Utz partner John Collins notes that Australia has traditionally treated the theft of trade secrets as a commercial issue that attracts civil remedies, although he says there is potential for criminal penalties to be introduced in the future.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, CLAYTON UTZ, LAW COUNCIL OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, BOEING COMPANY

Braddon business writes off Shorten’s write-off

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Original article by Matthew Denholm
The Australian – Page: 5 : 5-Jul-18

Opposition Leader Bill Shorten is campaigning in the seat of Braddon in Tasmania ahead of the by-election on 28 July. Local business owner Shane Smith says the Coalition’s company tax cuts package would be of more benefit to businesses in Braddon than Shorten’s alternative of a tax deduction on capital investments of at least $20,000. Smith argues that many businesses in the electorate would not qualify as they lack the capital to make such a large investment.

CORPORATES
AUSTRALIAN LABOR PARTY, PENSTOCK DISTRIBUTORS, DEVONPORT CHAMBER OF COMMERCE AND INDUSTRY, LIBERAL PARTY OF AUSTRALIA

Cash ban lacks hard evidence: ACCI

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 5-Jul-18

The Australian Chamber of Commerce & Industry has questioned whether the Federal Government’s proposal to limit cash payments to $10,000 will be effective in combating the cash economy. The ACCI has warned that the ban, which was announced in the May 2018 Budget and is based on the recommendations of the black economy taskforce, could potentially undermine the integrity of the financial system. Australian Bankers’ Association CEO Anna Bligh has called for a sufficient transition period for bank customers to adapt to the proposed policy.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF FINANCE, KPMG AUSTRALIA PTY LTD

$7bn GST top-up to win states

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Original article by Simon Benson
The Australian – Page: 1 & 2 : 5-Jul-18

The Federal Government proposes to introduce a new model for the distribution of goods and services tax revenue which aims to ensure that no state territory will be disadvantaged. The reforms include the introduction of a GST floor, which will ensure that each state receives a minimum of $0.70 per person for each dollar of GST revenue from 2022. This will rise to $0.75 in 2024. The Government will also provide a funding boost totalling $A7bn to compensate states and territories for any loss of revenue during the six-year transition phase.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION

Coalition told to boost Fair Work posts

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 9 : 4-Jul-18

The Australian Mines & Metals Association has warned that the Fair Work Commission is under-resourced. AMMA CEO Steve Knott says the Federal Government should appoint up to seven additional FWC members in order to address its heavy workload. He notes that the FWC currently has 39 commissioners, compared with 46 when Labor was last in office in 2013. Knott also supports the Productivity Commission’s recommendation to limit FWC members’ terms to 10 years.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS

Abbott call: pull out of Paris deal

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Original article by Joe Kelly
The Australian – Page: 1 & 6 : 4-Jul-18

Former prime minister Tony Abbott says Australia should withdraw from the Paris Agreement on climate change, arguing that it would be the best way to preserve jobs and keep electricity prices down. Meanwhile, the National Party wants its proposed $A5bn government energy fund to be used to finance the construction of at least three new baseload power stations and to both increase the capacity and extend the operational life of existing power stations.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, LIBERAL-NATIONAL PARTY OF QUEENSLAND, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Surge in video streaming on NBN

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 3-Jul-18

Data from NBN Co shows that video streaming, web browsing and virtual ­private networks account for the bulk of traffic on the national broadband network. The average household with an NBN connection now downloads 200 gigabytes per month, compared with just 70GB per month three years ago. Labor has declined to comment on whether it still intends to roll out fibre-to-the-premises technology nationwide if it wins the next federal election.

CORPORATES
NBN CO LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NETFLIX INCORPORATED

Labor two-tier tax system is too complex

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 3-Jul-18

Tax experts have expressed concern about the complexity of the company tax regime if Labor wins the next federal election and retains the current tax rate of 27.5 per cent for businesses with turnover of $10m to $50m. Opposition Leader Bill Shorten was recently forced to back down on his proposal to reverse company tax cuts that have already been legislated. However, Grant Wardell-Johnson of KPMG says a two-tiered company tax system is not economically justifiable and will deter foreign direct investment in Australia.

CORPORATES
AUSTRALIAN LABOR PARTY, KPMG AUSTRALIA PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

No state worse off in GST shake-up: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 3-Jul-18

The Federal Government will shortly release its response to the Productivity Commission’s report on the distribution of goods and services tax revenue. Prime Minister Malcolm Turnbull has stressed that no state will be disadvantaged by any change in the methodology for allocating GST revenue. The government is expected to compensate states for any loss of revenue during the transition to a new GST distribution formula; economist Saul Eslake says clarification is needed regarding the compensation plan.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY