AUSTRALIA – POLITICS AND GOVERNMENT

Deflation raises budget rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 28-Apr-16

The consumer price index fell by 0.2 per cent in the March 2016 quarter, with year-on-year growth of 1.3 per cent. The latest inflation data has raised the prospect that the Reserve Bank of Australia could cut official interest rates on 3 May, when the Federal Government will also deliver the 2016 Budget. National Australia Bank now expects the cash rate to be reduced in May, while financial markets now regard the chance of a rate rise to be 55 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED

Adelaide-built submarines will cost more, Coalition concedes

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 8 : 27-Apr-16

The Australian Government’s decision to build a new $A50bn fleet of submarines in Adelaide will create 2,800 jobs in South Australia, including 1,100 direct jobs. RAND Corporation has estimated that building the 12 submarines overseas would have reduced the cost by 30-40 per cent, but notes that the cost will be reduced by having a continuous shipbuilding program. The submarine contract has been awarded to France-based DCNS, which edged out defence contractors from Japan and Germany.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF DEFENCE, DCNS SA, RAND CORPORATION, JAPAN. MINISTRY OF DEFENCE, JAPAN. OFFICE OF THE PRIME MINISTER, AUSTRALIAN LABOR PARTY

Labor tries again on carbon plan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 27-Apr-16

The Federal Opposition will release details of its climate change policy on 27 April 2016. It will seek to reduce greenhouse gas emissions by 45 per cent on 2005 levels by 2030. The Australian Labor Party will introduce a new domestic emissions trading scheme in two stages, which will have the ultimate goal of reducing the nation’s carbon emissions to zero by 2050. Labor also intends to introduce a separate emissions trading scheme for the electric power industry from 2018.

CORPORATES
AUSTRALIAN LABOR PARTY, CLIMATE INSTITUTE (AUSTRALIA) LIMITED, AUSTRALIA. CLEAN ENERGY FINANCE CORPORATION, NATIONAL PARTY OF AUSTRALIA

High earners may cop super tax rises

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 27-Apr-16

The Australian Government’s May 2016 Budget might include reducing the income threshold for the 30 per cent tax rate for superannuation contributions from $A300,000 to $A250,000. This is the same threshold that was proposed by the Opposition in 2015. Meanwhile, the Government is believed to have ruled out reducing the level of super contributions that attract the concessional tax rate from $A30,000 a year to $A20,000. Other super changes include abolition of the anti-detriment payment and transition-to-retirement provisions.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD

Double tax cut for best paid

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 26-Apr-16

People with annual income of more than $A180,000 will benefit from abolition of the temporary deficit levy and an increase in the $A80,001 income tax threshold in the Australian Government’s May 2016 Budget. The levy was introduced in the 2014 Budget and is slated to be abolished in 2017, although the Opposition has signalled that the levy may become permanent if it wins the election. Increasing the income tax threshold is aimed at combating so-called "bracket creep".

CORPORATES
AUSTRALIAN LABOR PARTY

Unions to push for penalty rates law

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Original article by Ewin Hannan
The Australian Financial Review – Page: 3 : 26-Apr-16

Unions have criticised Federal Opposition Leader Bill Shorten for indicating that he will support the Fair Commission’s decision if it rules in favour of reducing Sunday penalty rates. They argue that his comments undermines the union movement’s "Save Our Weekend" campaign, and the Victorian Trades Hall Council secretary Luke Hilakari says unions will seek to have minimum penalty rates included in the National Employment Standards if the Opposition wins the 2016 federal election.

CORPORATES
AUSTRALIAN LABOR PARTY, VICTORIAN TRADES HALL COUNCIL, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT, ACTU, AUSTRALIA. PRODUCTIVITY COMMISSION

Brace ‘for another $129b’ in deficits

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 26-Apr-16

Chris Richardson of Deloitte Access Economics expects the Australian Government to announce a 2016 Budget deficit of $A41.7bn, compared with $A37.9bn in 2015. It would also be $A4.3bn higher than the Government had forecast in the mid-year Budget update. Richardson downplays the impact of the recent rally in the iron ore price on the deficit, arguing that slowing growth in wages will have a bigger effect on government revenue.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY

Labor eyes tax hit on top earners

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Original article by David Crowe
The Australian – Page: 1 & 4 : 21-Apr-16

The Australian Government has ruled out extending the Budget deficit levy on high-income earners beyond 30 June 2017. However, the Opposition may consider retaining the levy on individuals whose annual taxable income exceeds $A180,000 if it wins the 2016 federal election. The levy is estimated to have raised about $A1.2bn each year since it was announced in the May 2014 Budget. Australian Greens Leader Richard Di ­Natale says the deficit levy should be permanent rather than temporary.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIAN TAXATION OFFICE, LIBERAL PARTY OF AUSTRALIA

Penalty rates a poll bombshell

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Original article by Elizabeth Colman, Joe Kelly
The Australian – Page: 1 & 4 : 21-Apr-16

The Fair Work Commission may issue its ruling on weekend penalty rates in the retail and hospitality industries before the 2016 federal election. Employers are seeking a reduction in the penalty rates that apply for working on Sundays and public holidays. Australian Industry Group chief executive Innes Willox says penalty rates will be the key industrial relations issue during the election campaign. He argues that the current regime deters employers from hiring and training staff.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, ACTU, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, UNITED VOICE, TOURISM ACCOMMODATION AUSTRALIA, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

Turnbull puts trust in job-creation record

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Original article by David Crowe
The Australian – Page: 5 : 20-Apr-16

Prime Minister Malcolm Turnbull has rejected suggestions that the 2016 election campaign has begun, stressing that he will not request the dissolution of Parliament until after the Budget is handed down on 3 May. Turnbull has also signalled that trust will be a key theme of the election, and highlighted the Coalition Government’s track record on job creation since it took office in 2013.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY