AUSTRALIA – POLITICS AND GOVERNMENT

S&P warns deficit must not blow out

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 23-Nov-16

Craig Michaels of S&P Global Ratings says the Federal Government must return the Budget to surplus by 2020-21 if Australia is to retain its triple-A credit rating. He warns that a rating downgrade is possible if a return to surplus is further delayed, noting that a surplus had been forecast by the former Australian Labor Party government for 2012-13. Michaels also notes the domestic economy’s high reliance on foreign lenders continuing to finance the structural current account deficit.

CORPORATES
S&P GLOBAL RATINGS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD, McKINSEY AND COMPANY, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, RESERVE BANK OF AUSTRALIA

Savers’ contributions after tax plunge 29pc

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Original article by Sally Patten
The Australian Financial Review – Page: 5 : 23-Nov-16

Data from the Australian Regulation & Prudential Authority shows that after-tax superannuation contributions fell by 29 per cent year-on-year in the September 2016 quarter, to $A3.7bn. Post-tax contributions totalled $A19.2bn in the year to September, which is 17 per cent lower than previously. Jordan George of the SMSF Association and Profectus Financial Group’s Mark Fenech attribute the downturn in contributions to uncertainty regarding the Federal Government’s proposed super reforms.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SMSF ASSOCIATION, PROFECTUS FINANCIAL GROUP PTY LTD, AUSTRALIAN LABOR PARTY

ABCC set for action on site by year’s end

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Original article by David Crowe
The Australian – Page: 4 : 23-Nov-16

The Federal Government may wait until the final week of parliament to pursue its bill to reinstate the Australian Building & Construction Commission. It is optimistic that the majority of Senate cross-benchers will support the ABCC bill, after all but one voted for the bill to establish a registered organisations commission. The Government is holding talks with the Nick Xenophon Team regarding amendments to the ABCC bill to provide subcontractors with security of payment in the proposed building code.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, NICK XENOPHON TEAM, FAIR WORK BUILDING AND CONSTRUCTION, AUSTRALIA. DEPT OF EMPLOYMENT, ONE NATION PTY LTD, LIBERAL DEMOCRATIC PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Senate deal could see whistleblower bounty

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Original article by Matthew Knott, Georgia Wilkins
The Age – Page: 4 : 23-Nov-16

Senate crossbenchers Nick Xenophon and Derryn Hinch have warned that the Australian Government will face a backlash if it tries to back down on a deal to increase protection for whistleblowers. The Government agreed to the reforms in return for support for its bill to establish a registered organisations commission. The US system of paying bounties to whistleblowers is being considered by a parliamentary inquiry, which will report its recommendations by mid-2017.

CORPORATES
NICK XENOPHON TEAM, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, 7-ELEVEN STORES PTY LTD, GRIFFITH UNIVERSITY

ABCC could lead to rise in wages

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 10 : 18-Nov-16

Alice DeBoos, a partner at law firm K&L Gates, warns that wages in the construction sector could increase due to the Federal Government’s proposed building code. She says enterprise bargaining agreements that have been made since April 2014 will need to be renegotiated in order to comply with the code, and unions will seek a trade-off in return for scrapping non-compliant clauses. Senator Nick Xenophon and the Australian Industry Group have also expressed concern about the retrospective nature of the code.

CORPORATES
K&L GATES LLP, NICK XENOPHON TEAM, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Employers fear deals at risk with federal code

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Original article by Ewin Hannan
The Australian – Page: 5 : 17-Nov-16

The Federal Government’s proposed building code will apply retrospectively to enterprise agreements signed since April 2014. Employers want the code to apply only to agreements struck after the code takes effect. Employment Minister Michaelia Cash has stressed that anxiety about the code is not warranted as it would apply only to new government contracts. The code will be introduced if the Australian Building & Construction Commission legislation is passed by Parliament.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, THE AUSTRALIAN INDUSTRY GROUP

PM offers changes to secure IR bills

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Original article by David Crowe
The Australian – Page: 5 : 17-Nov-16

The Australian Government is willing to make amendments to its industrial relations bills in order to gain the Senate’s support when Parliament resumes. The Government will push ahead with the bill to establish a Registered Organisations Commission on 21 November 2016, and the proposed amendments are believed to include protection for whistleblowers and a stricter audit regime. The bill to reinstate the Australian Building & Construction Commission will be debated on 22 November. The bills will require the support of at least eight cross-benchers.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAMILY FIRST PARTY AUSTRALIA LIMITED, NICK XENOPHON TEAM, ONE NATION PARTY, LIBERAL DEMOCRATIC PARTY

Trump tax cuts must be matched

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Original article by Jacob Greber, Phillip Coorey, Misa Han
The Australian Financial Review – Page: 1 & 6 : 17-Nov-16

Federal Treasurer Scott Morrison says official data showing that annual wages growth fell below two per cent in the September 2016 quarter demonstrates the need for company tax reform. He adds that Australia will become less competitive if it does not cut the tax rate and US president-elect Donald Trump reduces company taxes to 15 per cent. Business Council of Australia CEO Jennifer Westacott will also highlight the need for corporate tax reform at the organisation’s annual dinner on 17 November.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUREAU OF STATISTICS, LIBERAL DEMOCRATIC PARTY, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, RESERVE BANK OF AUSTRALIA

Business forced to train locals

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 15-Nov-16

Federal Opposition Leader Bill Shorten will outline plans aimed at ensuring that employers give priority to hiring and training Australian workers rather than using the 457 visa system to fill labour shortages. Data shows that more than 95,000 temporary foreign workers are currently employed on 457 visas in 20 industries. The Opposition has also signalled that it will closely scrutinise any future free trade agreements to ensure that Australian workers are not disadvantaged.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TRANS-PACIFIC PARTNERSHIP, ASIA-PACIFIC ECONOMIC CO-OPERATION, ONE NATION PARTY, AUSTRALIAN GREENS

Gary Morgan’s comment on October unemployment: Donald Trump’s victory in US Presidential race shows electors believe real unemployment is higher than official statistics suggest

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Original article by Gary Morgan, Roy Morgan Research
Market Research Update – Page: Online : 15-Nov-16

US President-elect Donald Trump consistently stated during his campaign that real unemployment in the US was well over 20% or even 25% rather than the official Bureau of Labor Statistics (BLS) U3 figure – now at 4.9% for October 2016. In May Trump stated: "We have tremendous deficits. Don’t believe the 5 per cent. The real [unemployment] number is 20 per cent. The United States is dying from within, its domestic infrastructure is crumbling and successive administrations have wasted $5 trillion in the Middle East instead of using the money to create jobs and prosperity at home." Trump’s successful candidacy shows that many Americans agree with the new President that the official unemployment figures are considerably under-stated. There is a clear lesson for Australian politicians in Trump’s success.

CORPORATES
ROY MORGAN RESEARCH LIMITED, UNITED STATES. BUREAU OF LABOR STATISTICS