AUSTRALIA – POLITICS AND GOVERNMENT

Late bid by media bosses to sway ALP

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Original article by David Crowe
The Australian – Page: 6 : 31-May-17

Media executives will lobby federal politicians to support cross-media ownership reforms at meetings on 31 May. The support of Senate cross-benchers is likely to be crucial, as the Australian Labor Party still opposes abolition of the "two-out-of-three" rule. Communications spokeswoman Michelle Rowland argues that media ownership is already too concentrated under the existing regime. However, she says Labor would vote to scrap the "reach rule" if it is put to parliament in a separate bill.

CORPORATES
AUSTRALIAN LABOR PARTY, ONE NATION PARTY, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS

Watchdog to learn new tricks but old rules remain

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Original article by Mitchell Bingemann
The Australian – Page: 23 & 25 : 22-May-17

The Federal Government has endorsed all 27 recommendations arising from a review of the Australian Communications and Media Authority. Amongst other things, the roles of chair and CEO will no longer be held by the same person under the reforms to be implemented by the Government, while the focus of regulation will shift from traditional media such as print and broadcast to content and delivery channels.

CORPORATES
AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, ONE NATION PARTY, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

Hanson holds out on reform package

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Original article by Darren Davidson
The Australian – Page: 23 : 15-May-17

One Nation leader Pauline Hanson has indicated that her party will not support abolition of the "two-out-of-three rule", although it will back the rest of the Federal Government’s proposed media reform package. Communications Minister Mitch Fifield is holding negotiations with senate crossbenchers to secure support for the reforms, although the Opposition also intends to vote against scrapping the two-out-of-three rule.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, FREE TV AUSTRALIA LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN

Labor push for 49.5pc top tax hit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 12-May-17

Federal Opposition Leader Bill Shorten has used his Budget reply speech to outline measures to provide funding for the National Disability Insurance Scheme. He advocated retention of the two per cent temporary deficit levy for high-income earners and increasing the Medicare levy by 0.5 per cent for people on incomes of more than $A87,000. This would increase the highest marginal tax rate to 49.5 per cent. Shorten also said the Opposition supports a proposed bank levy, although he stressed that the cost should not be passed on to customers.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, DELOITTE ACCESS ECONOMICS PTY LTD

Good timing, as Morrison tips tax cuts in 2018

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Original article by Jacob Greber, Laura Tingle
The Australian Financial Review – Page: 9 : 11-May-17

The Australian Government aims to limit the nation’s tax-to-GDP ratio to 23.9 per cent. This cap is expected to be reached in 2022-23, although this could occur earlier due to factors such as income tax "bracket creep". Treasurer Scott Morrison has conceded that the Government may have to take action to avert this before 2022-23. He has flagged the possibility of personal income tax cuts in 2018, prior to the next federal election. The tax-to-GDP ratio is projected to be 21.5 per cent in 2016-17.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Bitter war on banks escalates

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Original article by Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 8 : 11-May-17

Federal Treasurer Scott Morrison says Australia’s five largest banks should avoid passing the cost of a proposed $A6.2bn Budget repair levy on to customers, warning that it would make them even less popular. Morrison has also advised that the levy will not be abolished once the Budget returns to surplus, although Australian Bankers’ Association CEO Anna Bligh has called for it to be scrapped once the deficit is eliminated. Meanwhile, shadow treasurer Chris Bowen says a royal commission into the bank is still needed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, LIBERAL PARTY OF AUSTRALIA

Ratings agency warns Coalition

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Original article by Jacob Greber, Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 9-May-17

The Australian Government’s May 2017 Budget is tipped to forecast a surplus in 2020-21. However, ratings agency Moody’s Investors Service has doubts regarding the Government’s ability to meet this target, as well as the economic growth forecasts in the Budget. Marie Diron of Moody’s says the firm will consider all aspects of the Government’s Budget consolidation policy over the next five years. She adds that the Australian economy’s trend growth is unlikely to be any higher than 2.75 per cent.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION, RESERVE BANK OF AUSTRALIA

Small business in line for big win

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Original article by David Crowe, Emily Ritchie
The Australian – Page: 5 : 9-May-17

A tax deduction that is popular with small business owners is due to expire on 30 June 2017. The "instant" deduction is able to be claimed against capital costs of up to $A20,000, and was first introduced by the Australian Labor Party in 2012. Peter Strong from the Council of Small Business Australia says he is hopeful that Treasurer Scott Morrison will announce an extension to the tax deduction in the May 2017 Budget.

CORPORATES
AUSTRALIAN LABOR PARTY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Reform package boosts shares

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Original article by Darren Davidson
The Australian – Page: 24 : 9-May-17

The Federal Government’s latest media reform proposals prompted a rally in the share prices of listed media groups on 8 May 2017. In addition to abolishing the "reach rule" and the "two out of three rule", the Government plan to replace TV broadcasting licence fees with an annual spectrum fee and ban gambling advertisements during live sports broadcasts prior to 8:30pm. Macquarie Group says the proposed reforms are positive for TV networks.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, MACQUARIE GROUP LIMITED – ASX MQG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, WIN CORPORATION PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, APN NEWS AND MEDIA LIMITED – ASX APN, TPG CAPITAL LP, FACEBOOK INCORPORATED, GOOGLE INCORPORATED

RBA: road and rail a house price fix

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Original article by Jacob Greber, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 5-May-17

The Australian Government’s May 2017 Budget is tipped to include funding for road and rail infrastructure, as part of its policy on housing affordability. Reserve Bank governor Philip Lowe says improved transport infrastructure is the best way to making housing more affordable. He adds that the Australian Prudential Regulation Authority’s move to crack down on lending to property investors is intended to provide "breathing space" to allow the supply-demand imbalance to correct itself, rather than being aimed at reining in house price growth.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY