AUSTRALIA – POLITICS AND GOVERNMENT

Government warned about risky NBN loan

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Original article by Primrose Riordan
The Australian Financial Review – Page: 7 : 15-Dec-16

The Parliamentary Budget Office estimates that the National Broadband Network will have an $A8.8 billion negative impact on Australia’s net worth. The PBO also warns in a report released on 14 December 2016 that NBN CO could experience difficulties with raising enough capital to pay back a loan of $A19.5 billion from the Federal Government in November. Finance Minister Mathias Cormann says the PBO’s doubts are unwarranted.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, NBN CO LIMITED

AAA could go at any time

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 15-Dec-16

Moody’s Investors Service and S&P Global Ratings have signalled that Australia’s triple-A credit rating could potentially be downgraded on 19 December 2016, following the release of the mid-year budget update. Both credit rating agencies have previously warned that the triple-A rating could be at risk if the Government fails to meet its target of 2020-21 for returning the Budget to surplus. Meanwhile, Adam Boynton of Deutsche Bank has forecast that nominal GDP growth will be 3.25 per cent in 2017-18, compared with the May Budget forecast of five per cent.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS, DEUTSCHE BANK AG, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Dodgy ABN’s ‘key to crackdown’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 15-Dec-16

The Australian Government’s taskforce on the cash economy will release an interim report in March 2017. The taskforce will be led by Michael Andrew, who says the large number of Australian Business Numbers that have been issued but have never incurred a tax liability is a major concern. He has also flagged the potential to impose harsher penalties as part of the crackdown on the cash economy, and adds that the $A100 note would not be missed by most consumers if it were withdrawn from circulation.

CORPORATES
KPMG, SWINBURNE UNIVERSITY OF TECHNOLOGY, RESERVE BANK OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA

Crackdown on cash economy targets billions

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 14-Dec-16

The Federal Government’s Mid-Year Economic and Fiscal Outlook will include the creation of a taskforce aimed at combating the cash economy. It will be headed by former KPMG executive Michael Andrew, and one of its priorities will be to investigate the large number of $A100 notes that are in circulation, despite the growing trend toward electronic payments. The taskforce’s final report will be delivered in October 2017. It is estimated that the cash economy accounts for about 1.5 per cent of Australia’s GDP, which equates to $A21bn.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, KPMG, RESERVE BANK OF AUSTRALIA, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND, AUSTRALIAN NATIONAL AUDIT OFFICE, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. BOARD OF TAXATION, UBS HOLDINGS PTY LTD

Morrison on notice as debt soars

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Original article by David Uren
The Australian – Page: 1 & 4 : 13-Dec-16

Ratings agency Moody’s has forecast that the combined debt of Australia’s federal and state governments will rise to about $A690bn by mid-2017, compared with $A642bn in June 2016. Treasurer Scott Morrison will release the mid-year economic and fiscal outlook on 19 December, and Marie Diron of Moody’s says the Government is likely to reduce the deficit but at a slower pace than forecast in the May 2016 Budget. Moody’s is not expecting to downgrade Australia’s triple-A credit rating, although rival S&P Global Ratings put it on "negative watch" earlier in 2016.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF EDUCATION AND TRAINING

Crisis looms unless leaders grasp economic reforms

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Original article by David Crowe
The Australian – Page: 1 & 4 : 9-Dec-16

The Council of Australian Governments meeting on 9 December 2016 coincides with the release of data showing that GDP growth fell by 0.5 per cent in the September quarter. Australian Institute of Company Directors chair Elizabeth Proust and former Business Council of Australia president Tony Shepherd have urged federal and state leaders to pursue measures aimed at boosting economic growth and investment. Former Victorian premier Jeff Kennett adds that the COAG meeting should focus on economic reform.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, NESTLE AUSTRALIA LIMITED, BANK OF MELBOURNE LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, THE AUSTRALIAN INDUSTRY GROUP

Labor blow to economy after GFC

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 9-Dec-16

Economist Tony Makin has concluded that the $A100bn fiscal stimulus package of former prime minister Kevin Rudd was in fact detrimental to the economy. Makin has reviewed the stimulus program on behalf of the Treasury, and noted that apart from wasting taxpayers’ funds on unnecessary expenditure, it hurt the local manufacturing industry. Makin also refutes suggestions that fiscal stimulus helped to protect the domestic economy from the full impact of the global financial crisis, arguing that factors such as a falling Australian dollar, low interest rates and demand for commodities played a greater role.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, GRIFFITH UNIVERSITY, AUSTRALIAN LABOR PARTY

PM rejects advice on carbon plan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 8 : 8-Dec-16

The Federal Government has decided against considering a carbon scheme for the electricity sector and thus ignored advice from Chief Scientist Alan Finkel. In early December 2016, Energy Minister Josh Frydenberg suggested that such a scheme could be considered under Finkel’s review of Australia’s National Energy Market. He subsequently rejected this scenario, under pressure from Senator Cory Bernardi and Industry Minister Christopher Pyne.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Budget turmoil as GDP slumps

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Original article by David Uren
The Australian – Page: 1 & 4 : 8-Dec-16

Treasurer Scott Morrison has attributed the larger-than-forecast downturn in GDP growth in the September 2016 quarter to a sustained decline in business investment over the last three years. The national accounts data shows that GDP growth contracted by 0.5 per cent during the period, while annual growth fell from 3.1 per cent in the June quarter to just 1.8 per cent. Morrison has downplayed the potential for a recession, while Westpac’s Bill Evans argues that a number of one-off factors contributed to the poor economic performance, including the federal election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, DEUTSCHE BANK AG, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, S&P GLOBAL RATINGS

PM rules out carbon price

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Original article by Sarah Martin
The Australian – Page: 1 & 4 : 7-Dec-16

The Australian Government will proceed with its review of its Direct Action climate change policy, but Energy Minister Josh Frydenberg says introducing an emissions intensity scheme will not be on the agenda. A number of Coalition MPs have warned against the introduction of any policy that resulted in higher electricity prices, including a carbon tax or an emissions trading scheme. However, the Opposition has indicated that it supports an emissions intensity scheme.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN ENERGY COUNCIL, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE