AUSTRALIA – POLITICS AND GOVERNMENT

Turnbull rejects ‘slash and burn’ approach to spending

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Original article by David Uren
The Australian – Page: 2 : 26-Nov-15

The Australian Government does not intend to include deep cuts in spending in its December 2015 Budget update. Prime Minister Malcolm Turnbull said on 25 November that spending cuts must not compromise economic growth. Westpac chief economist Bill Evans does not believe that Australia’s "AAA" credit rating is under threat.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Competition reforms to ‘end decline in growth’

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Original article by David Uren
The Australian – Page: 6 : 25-Nov-15

The Australian Government released its response to the Harper review of competition policy on 24 November 2015. It has endorsed the bulk of the review’s recommendations, although proposed changes to laws on abuse of market power will face additional scrutiny. Meanwhile, Treasurer Scott Morrison is confident that the Government’s competition reforms will result in wide-ranging benefits for consumers and provide a much-needed boost to productivity.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA

Sober outlook for economy

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 25-Nov-15

Australia’s trend growth rate has usually been regarded as being around three per cent. However, the Treasury has confirmed that the December 2015 Budget update will be based on expectations of a potential growth rate of 2.75 per cent. Meanwhile, Reserve Bank governor Glenn Stevens forecasts that investment yields and global interest rates will remain low for some time. He has also warned Baby Boomers that they cannot expect to keep enjoying growth in dividends unless the companies they invest in are prepared to embrace more risk.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUSINESS ECONOMISTS INCORPORATED, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, UNITED STATES. CONGRESSIONAL BUDGET OFFICE, GREAT BRITAIN. DEPT OF THE TREASURY

Get ready for cigarettes at $40 a pack

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 24-Nov-15

The Australian Labor Party will raise the excise rate for cigarettes by 12.5 per cent for four years from mid-2017 if it wins the next federal election. The rise in excise of this magnitude would result in cigarettes costing more than $A40 a pack. Some experts stress the fact that smoking is more prevalent among lower-income households than wealthier households and, therefore, the proposed policy would make poor people even poorer.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, WORLD TRADE ORGANIZATION, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, CANCER COUNCIL OF AUSTRALIA

Media reform debate could go to the wire

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Original article by Dominic White
The Australian Financial Review – Page: 31 : 23-Nov-15

The Australian Government’s proposed changes to cross-media ownership laws may still be discussed by cabinet before parliament rises for the year, although other issues are likely to take priority in the coming week. Meanwhile, pay-TV group Foxtel has proposed removing sports events such as the FA Cup and the US Masters Golf from the anti-siphoning list. Australian Subscription Television & Radio Association chairman Tony Shepherd has also advocated changes to the list.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, FOOTBALL ASSOCIATION LIMITED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE

Incentives eyed for downsizers

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Original article by Gretchen Friemann, David Uren
The Australian – Page: 6 : 20-Nov-15

The Australian Government has proposed measures aimed at reducing retirees’ dependence on the age pension by encouraging them to sell their family home and use the proceeds to invest in retirement products such as annuities. Measures being considered by Treasurer Scott Morrison include a stamp duty exemption for people who downsize to a smaller home and excluding the proceeds from the sale of a family home from the assets test for the age pension.

CORPORATES
AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. PRODUCTIVITY COMMISSION, COUNCIL ON THE AGEING, CHALLENGER LIMITED – ASX CGF, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. THE TREASURY

Unions launch onslaught on super changes

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Original article by Ewin Hannan
The Australian Financial Review – Page: 7 : 19-Nov-15

The ACTU has appealed to the public to oppose the Australian Government’s plans to make changes to the superannuation system. ACTU president Ged Kearney said people will be alerted to the alleged threat to their super savings via automated telephone calls and radio advertisements. She claims that the changes would give the big banks more control over super.

CORPORATES
ACTU, AUSTRALIA. DEPT OF THE TREASURY

Fed, China fears hit iron ore, copper

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Original article by Jacob Greber, Stephen Cauchi
The Australian Financial Review – Page: 1 & 13 : 19-Nov-15

The latest downturn in the iron ore price will put pressure on Australia’s terms of trade as Treasurer Scott Morrison prepares to release a Budget update in late 2015. Budget forecasts in May were based on an average iron ore price of $US48 per tonne in 2015-16. Although the price of the steel input rebounded to around $US60 in July, it has fallen to $US45.58 in mid-November. Slower growth in wages will also impact on government revenue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, UNITED STATES. FEDERAL RESERVE BOARD, BLOOMBERG LP

Treasurer hints at lower economic growth trend

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Original article by Jacob Greber, Primrose Riordan
The Australian Financial Review – Page: 5 : 18-Nov-15

The Australian economy’s trend growth rate has traditionally been regarded as being around 3.25 per cent. Treasurer Scott Morrison says the economy is currently expanding by 2.3 per cent, but this would need to rise above three per cent for government revenue to be sufficient to balance the Budget. The Treasury has previously forecast that the Budget will return to deficit by the early 2020s, although this is based on an economic growth rate of 3.5 per cent over the five years from 2018-19.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Breakthrough on Indonesia trade deal talks

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Original article by Greg Earl
The Australian Financial Review – Page: 6 : 18-Nov-15

Australia’s Trade Minister Andrew Robb has indicated that negotiations over a bilateral trade agreement with Indonesia will resume in early 2016. Robb aims to finalise a trade deal with Indonesia within 12 months, which is the time-frame used in negotiating free trade agreements with other nations. Australia and Indonesia formally commenced negotiations for a Closer Economic Partnership Agreement in September 2012, but the process stalled in 2013.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, INDONESIA. DEPT OF INDUSTRY AND TRADE, ASIA-PACIFIC ECONOMIC CO-OPERATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TRANS-PACIFIC PARTNERSHIP