AUSTRALIA – POLITICS AND GOVERNMENT

‘No reason to deny’ Qantas-China Eastern deal

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 18 : 14-Apr-15

The Australian Competition & Consumer Commission (ACCC) opposes an alliance between Qantas and China Eastern Airlines. However, the Department of Infrastructure & Regional Development’s submission on the regulator’s draft decision argues that the alliance will benefit travellers and the Australian economy. It takes the view that the ACCC has focused too much on the alliance’s impact on competition on the Sydney-Shanghai route

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE AIRLINES LIMITED, MALAYSIAN AIRLINE SYSTEMS, UNIVERSITY OF TECHNOLOGY, SYDNEY. AUSTRALIA-CHINA RELATIONS INSTITUTE, AIR CHINA

‘No way’ to a Glencore-Rio merger: Hockey

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 9-Apr-15

The prohibition on Glencore executives commenting on a bid for Rio Tinto lapsed on 8 April 2015, six months after Rio rejected a takeover approach. Glencore is tipped to make another bid for Rio, but Australian Treasurer Joe Hockey is believed to have explicitly ruled out Federal Government approval for such a deal. His comments are said to have been made at a private meeting with business leaders and mining industry executives in late March

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, AUSTRALIA. DEPT OF THE TREASURY, MINERALS COUNCIL OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ALUMINIUM CORPORATION OF CHINA LIMITED

Leave GST allocation, as it is, Hockey advised

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 8-Apr-15

Australia’s federal and state Treasurers will meet in Canberra on 9 April 2015. The distribution of goods and services tax revenue will be on the agenda, with Western Australia arguing for some years that it is disadvantaged by the current distribution model. However, a Commonwealth Grants Commission report has recommended retaining the status quo

CORPORATES
AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

L-NP support jumps following Mike Baird’s triumph in NSW Election

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 7-Apr-15

A multi-mode Morgan Poll on Federal voting intention has found that support for the Coalition on a two-party preferred basis has risen by three per cent to 47 per cent. The poll, which was carried out on the weekends of 28-29 March and 3-6 April 2015, also shows that support for the Australian Labor Party has fallen by three per cent to 53 per cent. Roy Morgan Research executive chairman Gary Morgan says labour market deregulation is needed to stimulate the economy and enable the 2.5 million Australians who are unemployed and under-employed to get jobs

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, PALMER UNITED PARTY, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

Government’s finger on double-dissolution trigger

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 2-Apr-15

The Australian Government insists on continuing with its policy of university fee deregulation. Education Minister Christopher Pyne said on 1 April 2015 that he will present the proposed legislation to the Senate again, despite the fact that it has already been rejected twice. If the bill is rejected again, it may trigger a double dissolution election

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING, THE GROUP OF EIGHT LIMITED

Budget may move on super, Grattan warns

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Original article by Sally Patten
The Australian Financial Review – Page: 14 : 1-Apr-15

The Grattan Institute has suggested that the Australian Government’s May 2015 Budget could feature changes to tax breaks for superannuation contributions. CEO John Daley says such measures could potentially include reducing the annual contributions limit or the salary threshold at which a higher tax on contributions applies

CORPORATES
GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE TREASURY, TAXPAYERS AUSTRALIA INCORPORATED

Google tax to hit profit shifting

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 5 : 1-Apr-15

The Australian Government’s May 2015 Budget will include tax measures aimed at addressing the problem of profit-shifting by multinational corporations. The so-called "Google tax" will be modelled on the UK’s Diverted Profits Tax. The Australian Labor Party recently unveiled measures intended to combat profit-shifting. The Budget will also include a levy on bank deposits, while the small business sector will receive a tax cut

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GOOGLE INCORPORATED, GROUP OF TWENTY (G-20), AUSTRALIAN TAXATION OFFICE, THE GROUP OF EIGHT LIMITED, AUSTRALIA. DEPT OF EDUCATION AND TRAINING

Government urges FWC caution on minimum wage increase

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Original article by Ewin Hannan
The Australian Financial Review – Page: 4 : 31-Mar-15

Unions are seeking a $A27-per-week increase in Australia’s minimum wage. The Federal Government’s submission to the Fair Work Commission has broadly supported the view of employers that such an increase would result in job losses. The Government also notes that 61.5 per cent of people who take up a low-paying job tend to leave such positions within one year. Instead, it favours addressing income inequality via the tax-transfer system

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY

Plan to save Australian shipbuilding industry

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Original article by John Kerin
The Australian Financial Review – Page: 4 : 31-Mar-15

ASC, BAE Systems and Forgacs have begun shedding workers at their Australian shipyards in response to a lull in defence projects. The Federal Government has proposed a new strategy for the shipbuilding industry whereby new naval vessels will be continuously built over the next two decades, replacing older vessels as they are retired from service. Japan has a similar program for its submarine fleet

CORPORATES
ASC PTY LTD, BAE SYSTEMS AUSTRALIA LIMITED, FORGACS ENGINEERING PTY LTD, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED

Dividend credit debate splits business, investors

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Original article by Vesna Poljak, Shaun Drummond, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 31-Mar-15

Changes to the dividend imputation system are among the reforms canvassed in the Australian Government’s tax discussion paper, which was released in late March 2015. Wilson Asset Management chairman Geoff Wilson says scrapping dividend imputation credits may result in a sharp fall in yields for investors, while Fidelity fund manager Paul Taylor warns that it would result in poor decisions on the allocation of capital. However, some observers are in favour of reviewing dividend imputation

CORPORATES
WILSON ASSET MANAGEMENT, FIDELITY INVESTMENTS AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, CORPORATE TAX ASSOCIATION, COCHLEAR LIMITED – ASX COH, GROUP OF 100, BUSINESS COALITION FOR TAX REFORM, WOOLWORTHS LIMITED – ASX WOW, WAVESTONE CAPITAL PTY LTD, CARDNO LIMITED – ASX CDD, AMP LIMITED – ASX AMP