AUSTRALIA – POLITICS AND GOVERNMENT

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

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

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

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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

Budget woos small firms, start-ups

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 25-Mar-15

The Australian Government’s May 2015 Budget will include tax relief for small businesses, including those that are not incorporated. There were concerns that they would not receive the proposed 1.5 per cent reduction in the company tax rate for small businesses. The Government may also introduce accelerated depreciation for assets held by small businesses, while it intends to wind back changes to employee option schemes that were implemented by the Australian Labor Party

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Federal ALP increases lead as NSW prepares to vote in State Election

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 23-Mar-15

A multi-mode Morgan Poll on Federal voting intention has found that support for the Coalition on a two-party preferred basis has fallen by 2.5 per cent to 44 per cent. The poll, which was carried out on the weekends of 14-15 and 21-22 March 2015, also shows that support for the Australian Labor Party has risen by 2.5 per cent to 56 per cent. Roy Morgan Research executive chairman Gary Morgan says Labor has increased its strong lead over the Coalition on a two-party preferred basis, despite what looks like the certain re-election of New South Wales Liberal Premier Mike Baird on 28 March

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 PRIME MINISTER AND CABINET

Big pressure to scrap small firms tax cut

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 24-Mar-15

The Council of Small Business Australia has urged the Federal Government to abandon a proposed 1.5 per cent tax cut for small businesses. CEO Peter Strong argues that the tax cut that has been proposed for the May 2016 Budget will do little to improve business confidence. The council instead favours the introduction of an accelerated depreciation rate of 150 per cent for the sector, a move which is also supported by several government MPs

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Bid to clean up ‘feral’ Senate

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 20-Mar-15

Liberal Party of Australia MP Tony Smith has urged changes to the voting system for the upper house. Smith has expressed concern that the current system can be "gamed" by independents and minor parties to secure seats in the Senate. He favours a system of optional preference voting for people who chose to vote "above-the-line" on the ballot paper, which would not result in the distribution of preferences. Australian Greens senator Lee Rhiannon has supported the reform push

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA

Budget gets $80b worse under Libs

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Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 20-Mar-15

Analysis of the Australian Government’s Budget papers shows that the nation’s cumulative deficits for the three years to 2017-18 now total $A103.9bn. This compares with the Government’s forecast of $A24.5bn in deficits. The Government seems likely to achieve about $A8bn worth of savings that it has pursued since taking office in 2013. The budget deficit for 2014-15 is expected to exceed $A40bn, compared with the Government’s forecast of just $A24bn

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA

Abbott loses the plot on debt

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 19-Mar-15

Prime Minister Tony Abbott seems to have abandoned his commitment to economic reform. He said on 18 March 2015 that the May 2015 Budget will be "dull". Abbott no longer insists on reducing debt as quickly as possible and accepts that it could take 40 years to achieve a Budget surplus. Australia’s national debt is currently at 15 per cent of GDP, but it is forecast to rise to 60 per cent by 2055

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD AND POOR’S CORPORATION, BANK OF AMERICA CORPORATION, MERRILL LYNCH (AUSTRALIA) PTY LTD, BUSINESS COUNCIL OF AUSTRALIA

Iron ore budget hole gets bigger

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Mar-15

Prime Minister Tony Abbott says his government will balance the Budget in about five years’ time. However, the continued fall in the price of iron ore since late 2014 is expected to reduce government revenue by $A1.8bn a year. The mid-year Budget update had forecast an average iron ore price of $US60 per tonne, but it has since traded at a low of $US56. Meanwhile, Education Minister Christopher Pyne will press ahead with university reforms, despite the bill being rejected by the Senate for a second time on 17 March 2015

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA. DEPT OF SOCIAL SERVICES, LIBERAL PARTY OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD