AUSTRALIA – POLITICS AND GOVERNMENT

Business v Barnaby in effects-test stoush

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Original article by Patrick Durkin
The Australian Financial Review – Page: 4 : 22-Feb-16

Australia’s new Deputy Prime Minister Barnaby Joyce says the National Party favours making changes to competition law to introduce a so-called "effects test". However, many blue-chip companies oppose any move to introduce changes to the misuse of market power provisions in order to protect small businesses. They include Woolworths, Wesfarmers, Insurance Australia Group and Boral.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PARTY OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BORAL LIMITED – ASX BLD, SYDNEY AIRPORT – ASX SYD, AUSTRALIA. DEPT OF THE TREASURY, FOXTEL MANAGEMENT PTY LTD, AGL ENERGY LIMITED – ASX AGK, TELSTRA CORPORATION LIMITED – ASX TLS, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, IGA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Mandatory super comes under fire

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Original article by Sally Rose, Joanna Mather, Misa Han, Patrick Durkin
The Australian Financial Review – Page: 1 : 22-Feb-16

A spokesman for Treasurer Scott Morrison has downplayed media reports which suggested that the Federal Government may allow low-income earners to opt out of the superannuation system. The proposal has received support from David Murray, who headed the Government’s financial system inquiry, although it has attracted criticism from the superannuation industry and key employer groups.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, THE AUSTRALIAN INDUSTRY GROUP, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, DELOITTE TOUCHE TOHMATSU LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, FINANCIAL SERVICES COUNCIL, INDUSTRY SUPER AUSTRALIA PTY LTD, NATIONAL PARTY OF AUSTRALIA, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, REST SUPER PTY LTD, VISION SUPER PTY LTD

Iron ore rally could mean budget windfall

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Original article by Mark Mulligan, Gareth Hutchens
The Australian Financial Review – Page: 7 : 22-Feb-16

The iron ore price has rallied to its highest level in three months, and it is now higher than the price that was forecast in the Australian Government’s 2015 mid-year Budget update. Chris Richardson of Deloitte Access Economics estimates that Government revenue could be boosted by about $A1.2bn if the iron ore price remains at around its current level until the mid-year update in November 2016. Paul Bloxham of HSBC adds that the LNG price will also be a significant factor for the Budget update.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Ownership laws set to face cabinet test

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Original article by Jake Mitchell, Darren Davidson
The Australian – Page: 23 : 22-Feb-16

Communications Minister Mitch Fifield is expected to present proposed cross-media ownership reforms to Cabinet on 22 February 2016, with legislation likely to be tabled in Parliament in mid-March. The reforms are likely to include the abolition of the "reach rule" and the "two-out-of-three" rule, although there may be no changes to the anti-siphoning list for sports broadcasts. The reforms are also likely to include measures to ensure that regional broadcasters continue to provide local content in the event of mergers in the sector.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, YOUTUBE INCORPORATED, WIN CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, STAN ENTERTAINMENT PTY LTD, NATIONAL PARTY OF AUSTRALIA

Coalition has ‘failed’ to deliver on workplace policy promises

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Original article by James Massola
The Age – Page: 4 : 18-Feb-16

The Australian Government has made just four changes to industrial relations laws since taking office in September 2013. However, it has failed to make much progress on most of the 14 election policy commitments it made regarding industrial relations. Key policies such as reinstating the Australian Building & Construction Commission and changes to union right of entry laws have been stalled in the Senate.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. ROAD SAFETY REMUNERATION TRIBUNAL, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT

Negative gearing debate sparks divisions, passion

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Original article by Anne Hyland, Larry Schlesinger
The Australian Financial Review – Page: 1 & 4 : 17-Feb-16

Mayne Pharma director Roger Corbett has urged the Australian Government to leave the negative gearing regime unchanged, arguing that it has increased the wealth of people on middle incomes. Yellow Brick Road’s Mark Bouris also opposes any change to negative gearing, warning of the impact on economic growth and the investment market. However, former Perpetual fund manager Peter Morgan and ex-Reserve Bank board member Warwick McKibbin favour the abolition of negative gearing.

CORPORATES
MAYNE PHARMA GROUP LIMITED – ASX MYX, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, PERPETUAL LIMITED – ASX PPT, RESERVE BANK OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WAL-MART STORES INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Ministers told: stop spending

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Original article by Dennis Shanahan
The Australian – Page: 1 & 4 : 17-Feb-16

Treasurer Scott Morrison will use a National Press Club speech on 17 February 2016 to stress the need to ensure that government spending does not exceed revenue. He will argue that increased taxation should not be used to lift revenue above expenditure, and caution against justifying new spending measures by offsetting them against savings achieved elsewhere. Meanwhile, Prime Minister Malcolm Turnbull has officially ruled out an increase in the GST but says action must be taken on the issue of income tax "bracket creep".

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Liberals warn Nats could derail media changes

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Original article by Dominic White
The Australian Financial Review – Page: 3 : 17-Feb-16

Communications Minister Mitch Fifield hopes to introduce legislation to abolish the "reach rule" and the "two-out-of-three rule" by mid-2016. However, there are concerns that the cross-media ownership reform agenda may be threatened by the National Party’s stance on local content requirements for regional TV broadcasters. Liberal Senator Dean Smith says regional broadcasters are already struggling financially and any media reforms should not subject them to increased regulation.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, WIN CORPORATION PTY LTD, PRIME MEDIA GROUP LIMITED – ASX PRT, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Liberal MPs wary on negative gearing

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

Discussions about negative gearing have a political aspect. Both the Coalition and the Opposition want to impose restrictions in this area despite resistance from investors. The Australian Labor Party has proposed limiting negative gearing to new homes, while Treasurer Scott Morrison favours limits on the number of negatively geared properties or a cap on annual tax deductions. Coalition MPs are worried about a backlash from voters.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Soaring tax load hits workers

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Original article by Dennis Shanahan, Sid Maher
The Australian – Page: 1 & 4 : 16-Feb-16

The Heritage Foundation forecasts that Australia’s tax-to-GDP ratio could potentially rise to 27.5 per cent by 2019. The think tank has warned that this ratio will reach 25.9 per cent unless the Federal Government pursues tax reforms or there is a significant increase in global economic growth. The May 2015 Budget had projected a rise in the tax-to-GDP ratio to just 23.2 per cent by 2019. It had peaked at 24.2 per cent in 2005-06. Treasurer Scott Morrison has signalled that income tax reform remains on the agenda.

CORPORATES
THE HERITAGE FOUNDATION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, IPSOS AUSTRALIA PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, 2GB