AUSTRALIA – POLITICS AND GOVERNMENT

Bundled reforms await return

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Original article by Jake Mitchell
The Australian – Page: 26 & 28 : 16-May-16

The Australian Government will have to reintroduce its bill on cross-media ownership reform to Parliament if it wins the 2016 election. It is likely to package the reforms with a bill to reduce TV broadcasting licence fees, changes to the anti-siphoning for sports events and the pricing and allocation of broadcasting spectrum. The Government has previously ruled out introducing separate bills to abolish the "reach rule" and the "two-out-of-three rule".

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN LABOR PARTY

Coalition sells policy changes as ‘fair’

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Original article by Dennis Shanahan
The Australian – Page: 6 : 13-May-16

The Australian Government has defended its May 2106 Budget measures on the taxation of superannuation, with Cabinet Secretary Arthur Sinodinos and ex-prime minister Tony Abbott stressing that the changes are not retrospective. Sinodinos says the fact that some wealthy people are concerned about the changes demonstrates that the proposed reforms are fair. Abbott describes the reforms as a "gutsy call" by the Government and the right course of action.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, INSTITUTE OF PUBLIC AFFAIRS LIMITED

Company tax drop will pay off, says McKibbin

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Original article by Ben Potter
The Australian Financial Review – Page: 7 : 13-May-16

Prominent economist Warwick McKibbin has urged the Coalition to proceed with its proposed reduction in the company tax rate despite its high cost. The policy is estimated to cost $A48 billion over 10 years but McKibbin says it will add $A160 billion to GDP in the long-term. He disagrees with the assessment of the policy’s future benefits by Victoria University’s Janine Dixon, who calculated that a company tax cut would increase GDP while reducing gross national product by between $A800 and $A2,000 per capita.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, VICTORIA UNIVERSITY. CENTRE OF POLICY STUDIES

PM urged to tread carefully on steel

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 4 : 13-May-16

The Minerals Council of Australia (MCA) wants Prime Minister Malcolm Turnbull to proceed cautiously when dealing with the problem of the overproduction of steel in China. Turnbull said he spoke about the issue with US President Barack Obama on 12 May 2016. The Chinese Government is under pressure globally to prevent steel makers from flooding the market with their products. MCA CEO Brendan Pearson said Turnbull should also pay attention to the interests of Australian mining companies engaged in the production of iron ore and metallurgical coal used in steel production in China.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, WORLD TRADE ORGANIZATION, US STEEL CORPORATION, ALLEGHENY TECHNOLOGIES INCORPORATED, EUROPEAN UNION CHAMBER OF COMMERCE IN CHINA, CHINA. MINISTRY OF FOREIGN AFFAIRS

No changes to super cuts: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 12-May-16

Prime Minister Malcolm Turnbull has tried to pacify his electoral base by stating categorically that the proposed new limits on superannuation contributions for wealthy investors would not be retrospective. He said on 10 May 2016 that the substance of the new laws would not be changed but the Government is willing to discuss "the technicalities of the drafting." The proposed changes include a lifetime cap of $A500,000 on non-concessional contributions to super and a $A1.6 million limit on total super savings.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA

Iron ore blows hole in budget

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Original article by David Uren
The Australian – Page: 6 : 11-May-16

Revenue forecasts in the Australian Government’s May 2016 Budget are based on expectations that the iron ore price will average $US55 over the next two years. The price of the steel input is currently trading at around this level, but futures market quotes in Singapore suggest that it could fall to about $US50. Meanwhile, Justin Smirk of Westpac warns that the iron ore price could potentially fall below $US40, before stabilising at about $US42.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Labor to revive 12 per cent super guarantee

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 11-May-16

Shadow treasurer Chris Bowen has told the National Press Club that the Australian Labor Party will act quickly to release a mini-Budget if it wins the federal election on 2 July 2016. He also indicated that Labor will reinstate plans to lift the employer superannuation contribution to 12 per cent. The Australian Government put this policy on hold after abolishing the mining tax. The super guarantee has been increased from nine per cent to 9.5 per cent, but at present it is not slated to rise to 12 per cent until 2025.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA)

Business lashes PM on super, tax

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Original article by Patrick Durkin, Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 11-May-16

Asciano chairman Malcolm Broomhead has questioned whether the Australian Government will act on its May 2016 Budget commitment to progressively reduce the company tax rate to 25 per cent. He says the Government has already broken its promise to make no changes to the superannuation regime, and criticised the retrospective nature of the super tax reforms. Treasurer Scott Morrison and Foreign Minister Julie Bishop have emphasised that the tax changes will only apply to future rather than past super earnings.

CORPORATES
ASCIANO LIMITED – ASX AIO, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, WHITEHAVEN COAL LIMITED – ASX WHC, BHP BILLITON LIMITED – ASX BHP, HOST-PLUS, INSTITUTE OF PUBLIC AFFAIRS LIMITED, LIBERAL PARTY OF AUSTRALIA

Tables turn: Now Labor promises to protect AAA rating

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 10-May-16

Shadow treasurer Chris Bowen will address the National Press Club on 10 May 2016, where he will deliver his reply to the Australian Government’s Budget. Bowen will indicate that if the Opposition wins the federal election it will release the mid-year budget update by October, rather than in December. He will stress the need to reduce the Budget deficit in order to ensure that Australia retains its coveted triple-A credit rating. He will also question the merits of the Government’s proposal to progressively reduce the corporate tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA

Eight weeks out, too close to call

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 2 : 9-May-16

The Coalition won the 2013 federal election by 53.5 per cent to the Australian Labor Party’s 46.5 per cent on a two-party preferred basis, and public opinion polls suggest that the 56-day double-dissolution election on 2 July 2016 will be very close. The Opposition will require a swing of more than four per cent to win the election and oust a federal government after just one term for the first time since 1931.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, FAIRFAX MEDIA LIMITED – ASX FXJ, IPSOS AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE GOVERNOR-GENERAL, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION