AUSTRALIA – POLITICS AND GOVERNMENT

$100b GST hike to pay for tax cuts

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

The New South Wales Government will make a final push to achieve consensus among the states and territories on changes to the GST. Premier Mike Baird has previously advocated lifting the GST to 15 per cent and spending all proceeds on hospitals, education and compensation for the tax increase. However, he now proposes using the proceeds of the GST increase in the first year to finance corporate and personal income tax cuts, as well as compensation. Meanwhile, $A7bn of GST revenue would be allocated to hospitals and the education system in the three years to 2019-20.

CORPORATES
NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Terms of trade slump mires budget outlook

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 29-Jan-16

The Australian Government’s mid-year budget update in December 2015 had forecast a 10.5 per cent decline in the nation’s terms of trade in 2015-16. However, the latest trade data has prompted analysts to estimate that the terms of trade declined by between 4.5 per cent and 5.2 per cent in the December 2015 quarter. The downturn in the prices of key export commodities have hit the terms of trade, which may in turn significantly impact on government revenue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, INDUSTRY SUPER AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED, FITCH RATINGS LIMITED

Fresh food may be spared GST by Coalition

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 28-Jan-16

The issue of tax reform and the GST will be on the agenda of federal Cabinet ministers on 28 January 2018. Increasing the GST to 15 per cent is believed to be the Government’s preferred reform option, although the National Party will oppose any push to extend the GST to fresh food due to concerns that it would particularly affect people on low incomes. The Government has already ruled out broadening the scope of the GST to include healthcare and education.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Workers promised fair new industrial regime

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Original article by Phillip Coorey, Ewin Hannan
The Australian Financial Review – Page: 4 : 28-Jan-16

Federal Employment Minister Michaelia Cash has promised that all parties would be consulted on the proposed changes to industrial relations laws. She said on 27 January 2016 that the protection of workers’ rights will not be compromised. In her view, workers need a "strong safety net." The Federal Government is considering the introduction of enterprise contracts for medium-sized businesses.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN GREENS, ACTU

L-NP lead over ALP narrows – now 55% (down 1%) cf. 45% (up 1%). Nick Xenophon outpolls Labor in South Australia – again.

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 25-Jan-16

A multi-mode Morgan Poll on Federal voting intention has found that support for Australia’s ruling Liberal-National Coalition on a two-party preferred basis has fallen by one per cent to 55 per cent. The poll, which was carried out on the weekends of 16-17 and 23-24 January 2016, also shows that the Coalition’s primary vote has fallen by 3.5 per cent to 43.5 per cent, and the Roy Morgan Government Confidence Rating has fallen by 3.5 points to 113. Roy Morgan Research executive chairman Gary Morgan says that former prime minister Tony Abbott’s decision to stand again for his seat of Warringah at this year’s Federal Election will not be appreciated by current Prime Minister Malcolm Turnbull. It has the potential to derail the Liberal Party in the same way as Kevin Rudd did for Labor. Many believe that Abbott "wasted" his two years as prime minister and was unable to successfully implement any meaningful reforms to improve business conditions to the degree he had promised prior to winning the 2013 Federal Election. As PM Abbott showed no interest in reforming Australia’s out-dated and costly industrial relations laws. His legacy will only be truly apparent this year as the end of the mining boom and an uncertain global economic outlook lead to more Australians becoming unemployed.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, KATTER’S AUSTRALIAN PARTY, PALMER UNITED PARTY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Turnbull blocks republic push

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Original article by Joe Kelly
The Australian – Page: 4 : 27-Jan-16

Prime Minister Malcolm Turnbull says there are more urgent issues for Australia to address than whether the nation should become a republic. Although Turnbull himself is firmly in favour of a republic, he warns that pushing the issue too soon could result in another failed referendum on the question of ditching the monarchy. Western Australian Premier Colin Barnett supports Australia becoming a republic, but believes that the nation should wait for the 25th anniversary of the 1999 referendum on the issue before holding another one.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, TEN NETWORK HOLDINGS LIMITED – ASX TEN, ALLIANCE DEFENDING FREEDOM, AUSTRALIAN REPUBLICAN MOVEMENT

Cabinet looks at workplace changes in growth package

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

Strategies for lifting economic growth and employment will be on the agenda at the first meeting of federal Cabinet ministers for 2016. Industrial relations reforms may be part of the Federal Government’s election package, which could include a Productivity Commission recommendation to introduce enterprise contracts for companies that have at least 20 employees. The Government is also believed to favour increasing the GST and widening its scope to include fresh food. This would be accompanied by a reduction in the personal income and corporate tax rates.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION

Abbott saddles up for another run

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Original article by Sid Maher
The Australian – Page: 4 : 25-Jan-16

Former prime minister Tony Abbott has advised that he wants to contest the 2016 federal election. He has held the New South Wales seat of Warringah since 1994, and has nominated for pre-selection for another term in parliament. Abbott has downplayed recent speculation that his former chief of staff Peta Crudlin has urged him to make another bid for the prime ministership.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, LIBERAL PARTY OF NEW SOUTH WALES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SYDNEY HARBOUR FEDERATION TRUST, AUSTRALIAN LABOR PARTY, SUTHERLAND SHIRE COUNCIL

Takeaways from 7-Eleven wage fraud inquiry must stop the rot

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Original article by Adele Ferguson
The Australian Financial Review – Page: 40 : 25-Jan-16

The wage exploitation scandal has embroiled a number of franchise-based companies, including 7-Eleven, United Petroleum, Subway, Pizza Hut and Baker’s Delight. With a Senate inquiry due to release its recommendations in February 2016, the Australian Government should action to address the issue prior to the federal election. A range of reforms are needed, including changes to industrial relations laws, ensuring that financial penalties for wage fraud are sufficient to deter the practice, and increasing the powers of the Fair Work Ombudsman.

CORPORATES
7-ELEVEN STORES PTY LTD, UNITED PETROLEUM PTY LTD, SUBWAY SANDWICHES PTY LTD, PIZZA HUT AUSTRALIA, BAKER’S DELIGHT HOLDINGS LIMITED, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, NANDO’S AUSTRALIA PTY LTD, EAGLE BOYS DIAL A PIZZA AUST PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN TAXATION OFFICE, MAI PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, FEDERAL CIRCUIT COURT OF AUSTRALIA

Treasury against debt tax trade-off

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Original article by Joanna Mather, Primrose Riordan
The Australian Financial Review – Page: 1 & 4 : 25-Jan-16

Federal Treasurer Scott Morrison says that reducing tax deductions will not generate sufficient revenue to fund tax reforms. However, the Treasury’s submission to parliament’s economics committee has argued against financing a corporate tax cut via the abolition of tax deductions for corporate debt. This view is shared by the Business Council of Australia and companies such as CSL and Inpex, which have also made submissions to the inquiry.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, CSL LIMITED – ASX CSL, INPEX CORPORATION, KPMG AUSTRALIA PTY LTD, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, LIBERAL PARTY OF AUSTRALIA