AUSTRALIA – POLITICS AND GOVERNMENT

Budget turmoil as GDP slumps

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

Budgets too crucial to leave to MPs

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 5-Dec-16

Chartered Accountants Australia & New Zealand argues that the Parliamentary Budget Office should be given responsibility for monitoring the federal budget. It also calls for politicians to cease using the size of government as a criteria in assessing the nation’s financial health, while the impact of major policy decisions should be projected over a decade. CAANZ has also criticised the fiscal policies of the Howard and Rudd governments.

CORPORATES
CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, INSTITUTE FOR FISCAL STUDIES, GERMANY. COUNCIL OF ECONOMIC EXPERTS

Welfare debt squad hunts for $4bn

roymorgansocial Leave a comment

Original article by Sarah Martin
The Australian – Page: 1 & 6 : 5-Dec-16

The Australian Government expects data-matching technology to result in about 1.7 million welfare recipients being issued with compliance notices over the next three years. Welfare recipients have been ordered to repay almost $A650m since the automated system was introduced in July, which equates to about $A4.5m per day. The Government’s crackdown on fraud and overpayments is aimed at reining in the cost of welfare, which is forecast to total $A158.6bn in fiscal 2016.

CORPORATES
AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIAN COUNCIL OF SOCIAL SERVICE

Losing triple-A rating inevitable: Hewson

roymorgansocial Leave a comment

Original article by Simon King
The Australian – Page: 4 : 5-Dec-16

The former leader of the Liberal Party of Australia, John Hewson, believes that it is a matter of when rather than if the nation’s "AAA" credit rating is downgraded. Hewson adds that it will be a challenge for the Federal Government to achieve a Budget surplus by the end of the decade, and argues that neither of the major political parties have policies that will achieve this outcome.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, STANDARD AND POOR’S FINANCIAL SERVICES LLC, AUSTRALIAN LABOR PARTY

Turnbull to mount fresh IR push in 2017

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 2-Dec-16

Employment Minister Michaelia Cash has advised that the Federal Government proposes further industrial relations reform in 2017, after the Senate passed a bill to reinstate the Australian Building & Construction Commission. The Government intends to implement more of the recommendations made by the trade unions royal commission, as well as the Productivity Commission’s review of the industrial relations system. Opposition Leader Bill Shorten says the Australian Labor Party will abolish the ABCC if it wins the next election.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Resources rent tax will face a ‘sober’ review

roymorgansocial Leave a comment

Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Delay taints PM’s ABCC victory

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 5 : 1-Dec-16

The Senate has voted 36-33 in favour of a bill to reinstate the Australian Building & Construction Commission, but existing enterprise bargaining agreements will not have to comply with the new building code until November 2018. The Federal Government agreed to a two-year transition period in order to secure the support of Senator Derryn Hinch, who says he had concerns about the retrospective nature of the code as originally proposed by the Government. Meanwhile, the Opposition’s employment spokesman Brendan O’Connor says the Australian Labor Party will abolish the ABCC if it wins the next federal election.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, LEND LEASE GROUP LIMITED – ASX LLC, PROBUILD PTY LTD, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF EMPLOYMENT, ONE NATION PARTY

Delay taints PM’s ABCC victory

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 5 : 1-Dec-16

The Senate has voted 36-33 in favour of a bill to reinstate the Australian Building & Construction Commission, but existing enterprise bargaining agreements will not have to comply with the new building code until November 2018. The Federal Government agreed to a two-year transition period in order to secure the support of Senator Derryn Hinch, who says he had concerns about the retrospective nature of the code as originally proposed by the Government. Meanwhile, the Opposition’s employment spokesman Brendan O’Connor says the Australian Labor Party will abolish the ABCC if it wins the next federal election.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, LEND LEASE GROUP LIMITED – ASX LLC, PROBUILD PTY LTD, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF EMPLOYMENT, ONE NATION PARTY

Resources rent tax will face a ‘sober’ review

roymorgansocial Leave a comment

Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED