AUSTRALIA – POLITICS AND GOVERNMENT

Budget blowout of $5b if growth 3pc

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 17-Nov-15

The Australian economy’s trend growth rate has traditionally been regarded as 3.25 per cent. Reserve Bank Governor Glenn Stevens and Treasury secretary John Fraser have both recently warned that the nation’s "potential" growth rate could slow in coming years. Economic modelling by PwC has concluded that a trend rate of three per cent would result in Budget revenue being around $A5bn lower than expected each year.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Glenn McGrath bowls into carbon farming

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Original article by Mark Ludlow
The Australian Financial Review – Page: 8 : 13-Nov-15

The Clean Energy Regulator has granted $A557 million to 131 carbon reduction projects via the second auction from the Emissions Reduction Fund. Former cricketer Glenn McGrath is among the recipients of funding. He has agreed to grow trees on his rural property in north-west New South Wales to offset carbon emissions. Wesfarmers, Consolidated Pastoral Company, AGL Energy and Pacific National are among bigger recipients of funding for carbon reduction programs.

CORPORATES
AUSTRALIA. CLEAN ENERGY REGULATOR, WESFARMERS LIMITED – ASX WES, CONSOLIDATED PASTORAL COMPANY PTY LTD, AGL ENERGY LIMITED – ASX AGL, PACIFIC NATIONAL PTY LTD, CLIMATE FRIENDLY PTY LTD, REPUTEX AUSTRALIA PACIFIC PTY LTD

GST rise in trouble as rebellion in Senate grows

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Original article by Primrose Riordan
The Australian Financial Review – Page: 4 : 12-Nov-15

The majority of cross-bench senators will need to back any push by the Australian Government to increase the GST for it to succeed. However, a number of cross-bench senators have stated their opposition to lifting the GST to 15 per cent, as have several independent MPs in the lower house. The Opposition and the Australian Greens will also vote against any changes to the GST.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAMILY FIRST PARTY AUSTRALIA LIMITED, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Atlassian IPO to recharge tech scene

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Original article by Paul Smith, John Kehoe
The Australian Financial Review – Page: 17 & 32 : 11-Nov-15

The prospectus for Atlassian Software’s IPO in the US shows that the group boasted net income of $US6.8m and revenue of $US319.5m in 2014-15. The Australian technology company has been profitable for the last 10 years, in contrast to many peers that are valued at more than $US1bn. The Industry, Innovation and Science Minister, Christopher Pyne, has welcomed confirmation of the IPO, and says the Federal Government’s innovation agenda statement could result in the creation of more companies like Atlassian.

CORPORATES
ATLASSIAN SOFTWARE SYSTEMS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, XERO LIMITED – ASX XRO, UNLOCKD, CAMPAIGN MONITOR PTY LTD, BIGCOMMERCE PTY LTD

Gary Morgan – Tax reform and broadening the GST base will help tackle Australia’s "cash economy"

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 9-Nov-15

The solid increase in the ANZ-Roy Morgan Consumer Confidence rating (now 116.6, up from 105.3 pre-Turnbull) and Roy Morgan Business Confidence (119.3 in October 2015, up from 102.6 in August) since Malcolm Turnbull became Prime Minister in mid-September gives him the political capital to make the tough decisions now to ensure Australia’s future prosperity. The recent discussion about the taxation system – including increasing the GST from 10 per cent to 15 per cent, and possibly broadening the GST base, is needed because too many people and companies do not pay their fair share of tax. Broadening the GST base in combination with tax reform will help tackle Australia’s booming "cash economy" and allow the Federal Government to implement extensive industrial relations reform. Australians who want to prosper will not complain, as more jobs will be available for everyone.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Rich could pay 27pc super tax

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Original article by Phillip Coorey, Jennifer Hewett
The Australian Financial Review – Page: 1 & 2 : 11-Nov-15

Most Australians’ contributions to their superannuation funds are taxed at 15 per cent at present. The tax reform options being examined by the Federal Government include a proposal to tax super contributions at 20 percentage points below a taxpayer’s marginal income tax rate. Treasurer Scott Morrison has indicated that the Government’s focus is on taxing super at the accumulation phase. In contrast, the Opposition’s policy is centred on taxing super upon retirement.

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

Turnbull moves to dump reach rule

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Original article by Darren Davidson, Michael Bodey
The Australian – Page: 23 : 9-Nov-15

The issue of changes to cross-media ownership laws is expected to be the agenda for federal cabinet ministers in coming weeks, with the "reach rule" likely to be scrapped. Communications Minister Mitch Fifield also favours abolishing the "two-out-of-three" rule, although this may be opposed by the Australian Labor Party. The government is also believed to have agreed to abolish TV broadcasters’ licence fees, as the emergence of subscription video-on-demand services has reduced the value of these licences.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, FOXTEL MANAGEMENT PTY LTD, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN LABOR PARTY, FACEBOOK INCORPORATED

Bank GST for company tax cut plan

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 9-Nov-15

The Parliamentary Budget Office estimates that the goods and services tax will generate revenue of $A18bn over the next four years. However, increasing the tax to 15 per cent and broadening its scope to include financial services could potentially lift revenue to around $A27bn over four years. This is one of the options that will be considered by the Federal Government, and has been advocated by South Australian Premier Jay Weatherill.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, INTERNATIONAL MONETARY FUND

BCA says cut taxes for business first

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 6-Nov-15

Business Council of Australia president Catherine Livingstone argues that a lower corporate tax rate should be at the top of the Federal Government’s tax reform agenda. She notes that reducing the corporate tax burden has been proven to be most effective at boosting innovation and economic growth in other countries. Meanwhile, Prime Minister Malcolm Turnbull has stressed that tax reforms will not gain widespread public support unless they are seen to be fair.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, DELOITTE TOUCHE TOHMATSU LIMITED

Turnbull lays path to tax reform

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Original article by Sid Maher
The Australian – Page: 4 : 5-Nov-15

Prime Minister Malcolm Turnbull will use the Rebuilding Foundations for Reform conference on 5 November 2015 to outline the Federal Government’s reform agenda, which will include changes to the tax system. Treasurer Scott Morrison will also address the conference, and he will emphasise the need for changes to an "inefficient and costly" tax regime that will eventually hinder jobs growth and Australia’s attraction as an investment destination. Morrison’s speech will also embrace issues such as competition laws and innovation policy.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION