AUSTRALIA – POLITICS AND GOVERNMENT

Business rebuts tax-cut attacks

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 9-Jun-16

The heads of four Australian employers’ and industry groups have criticised opponents of the Federal Government’s proposal to progressively reduce the company tax rate over 10 years. They note that GDP will be boosted by one per cent on an ongoing basis as a result of the tax cuts, and argue that there is no justification for taxing businesses at a different rate depending on their size. The business leaders also warn that opposition to the tax cuts reflects broader anti-business sentiment.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED

Tax cut gain ‘twice cost to the budget’

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Original article by David Crowe
The Australian – Page: 1 & 6 : 8-Jun-16

Research by Chris Murphy of Independent Economics has concluded that the Australian Government’s proposal to progressively reduce the company tax rate will have significant economic benefits. Murphy has estimated that the "consumer benefit" from the tax cuts will be around $A2.39 for every $A1.00 in forgone revenue. Murphy has also rejected suggestions that the tax cuts will boost the after-tax profits of offshore investors.

CORPORATES
INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN LABOR PARTY, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED, AUSTRALIAN GREENS, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED)

Union bid to torpedo China FTA

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Original article by Joe Kelly
The Australian – Page: 1 & 6 : 8-Jun-16

The Construction, Forestry, Mining & Energy Union and the Electrical Trades Union have launched an advertising campaign that aims to put free trade agreements on the election agenda. The trade deal with China is being targeted by the unions, which want the Australian Labor Party to reconsider its support for the deal if it wins the 2016 election. Meanwhile, Labor has indicated that it will seek to remove so-called "investor state dispute settlement" provisions from Australia’s trade deals with China, Japan and South Korea.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, ELECTRICAL TRADES UNION, AUSTRALIAN LABOR PARTY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, MIGRATION COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

‘Unconscionable’ NAB sued by ASIC over alleged rate rigging

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 2 : 8-Jun-16

Opposition Leader Bill Shorten says the latest development in the scandal over manipulation of the bank bill swap rate demonstrates the need for a royal commission into the banking sector. The Australian Securities & Investments Commission will allege in the Federal Court that National Australia Bank manipulated the BBSW in 50 separate transactions from mid-2010 to late-2012. ASIC has previously launched legal action against Westpac and the ANZ Bank.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN GREENS, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

PM picks Facebook to run final encounter

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Original article by Jared Owens
The Australian – Page: 7 : 8-Jun-16

Prime Minister Malcolm Turnbull has confirmed that he will participate in an online debate rather than the "people’s forum" in Brisbane that will be broadcast on Sky News on 8 June 2016. The online debate will be streamed live on Facebook and jointly moderated by the social media group and news.com.au. Opposition Leader Bill Shorten will attend the people’s forum.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, FACEBOOK INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SKY NEWS, BRISBANE BRONCOS LEAGUES CLUB LIMITED

Vic Premier slams PM over firefighters

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Original article by Lucille Keen
The Australian Financial Review – Page: 3 : 8-Jun-16

Victorian Premier Daniel Andrews has criticised Prime Minister Malcolm Turnbull for politicising the dispute over a proposed enterprise bargaining agreement for the Country Fire Authority. Turnbull has promised to introduce changes to the Fair Work Act in response to the dispute, but Andrews has questioned whether he is fully informed of the Fair Work Commission’s recommendations concerning the EBA. Opposition Leader Bill Shorten has ruled out any intervention, stressing that it is a state issue.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET, VICTORIA. COUNTRY FIRE AUTHORITY, UNITED FIREFIGHTERS’ UNION OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION, VICTORIA. EQUAL OPPORTUNITY AND HUMAN RIGHTS COMMISSION

Labor plan would blow out deficit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 8-Jun-16

The Australian Government’s proposal to progressively reduce the company tax rate to 25 per cent is a key element of its 10-year economic growth plan. The Opposition will release its own 10-year economic growth strategy on 8 June 2016, which is expected to include an increase in the Budget deficit over the next four years before a return to surplus within a decade. Labor will also announce policies such as welfare reforms and changes to the national broadband network.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, ESSENTIAL MEDIA COMMUNICATIONS PTY LTD

Greens plan to break up big four banks

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Original article by Joanna Mather, James Thomson
The Australian Financial Review – Page: 7 : 3-Jun-16

Cross-selling of financial products by Australian banks may come under scrutiny after the 2016 federal election. The Australian Greens will push for the major banks to divest their wealth divisions, which provide products and services such as superannuation, financial advice and insurance. Vertical integration in the banking sector would also be examined by a royal commission into banks if the Australian Labor Party wins the election. The Australian Bankers’ Association has urged Labor to rule out supporting the Greens’ policy on vertical integration.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, MORNINGSTAR PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Super changes to hit 1.3m

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Original article by Sally Rose, Phillip Coorey, Sally Patten
The Australian Financial Review – Page: 1 & 4 : 3-Jun-16

The Association of Superannuation Funds of Australia has estimated that up to 1.26 million individuals will be affected by the superannuation tax reforms in the Federal Government’s May 2016 Budget. This equates to about nine per cent of super fund members, compared with the Government’s forecast of about four per cent. There is growing dissent within the Liberal Party regarding the proposed changes, but Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have stressed that the reforms will be fully implemented if the Coalition wins the federal election.

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY, ELSTON PARTNERS PTY LTD

Company levy ‘just 4.3pc of total take’

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Original article by Annabel Hepworth
The Australian – Page: 6 : 1-Jun-16

Analysis by Deloitte Access Economics suggests that the Australian Government will collect some $A1.11trn in corporate tax revenue between 2016-17 and 2026-27. It is estimated that the Government’s proposed company tax cuts will account for no more than 4.3 per cent of this revenue, and just 0.8 per cent of the Government’s overall revenue during this period. Minerals Council of Australia CEO Brendan Pearson says the Deloitte figures demonstrate that the proposed tax cuts are justified.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MMG LIMITED – ASX MMG