AUSTRALIA – POLITICS AND GOVERNMENT

Chalmers asks ACCC to probe deposit rates

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 12 & 15 : 11-Jan-23

Treasurer Jim Chalmers says consumers with savings accounts should consider switching banks to get a better deal, given that some banks still have low deposit interest rates despite eight increases in the cash rate during 2022. Chalmers contends that banks should treat their customers fairly with regard to savings accounts, and he has asked the Australian Competition & Consumer Commission to examine this issue in 2023. Analysis shows that smaller banks generally have much more competitive interest rates on deposit accounts than the nation’s four major banks.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Labor urged to keep golden ticket investor visa primarily used by Chinese migrants

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Original article by Paul Karp
The Guardian Australia – Page: Online : 10-Jan-23

The Productivity Commission recommended abolishing the significant investor visa in 2016, and Home Affairs Minister Clare O’Neil stated in September 2022 that the visa could be scrapped because it is not "adding value" to Australia. However, the Australia China Business Council has used its submission to a migration review to argue that these visas can generate significant economic benefits and should be retained. Some 2,300 significant investor visas have been granted since 2012, with migrants from Chinese receiving some 85 per cent of them.

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AUSTRALIA. PRODUCTIVITY COMMISSION,AUSTRALIA. DEPT OF HOME AFFAIRS,AUSTRALIA CHINA BUSINESS COUNCIL

State coal power to reap $500m-plus

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Original article by Max Maddison
The Australian – Page: 1 & 2 : 4-Jan-23

Households and small businesses will receive some $1.5bn in price relief via the federal government’s energy plan, which will cap gas and coal prices. Coal-fired power generators will in turn be entitled to compensation over the decision to cap coal prices at $125 per tonne. It has been estimated that coal-fired power stations in New South Wales could receive about $500m in compensation, with their Queensland counterparts could potentially be entitled to $750m in compensation. Independent senator David Pocock has criticised the government in the wake of revelations that mining company Rio Tinto and its partners could receive around $450m in compensation because they own the Gladstone power station.

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RIO TINTO LIMITED – ASX RIO

China’s Covid payback threat

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Original article by Greg Brown,Will Glasgow
The Australian – Page: 1 & 2 : 4-Jan-23

A growing number of countries will require travellers from China to undergo pre-flight testing for COVID-19. However, Chinese authorities believe that such measures are not necessary, and foreign ministry spokeswoman Mao Ning has warned that the nation will take reciprocal action against countries that impose testing requirements that apply only to travellers from China. Meanwhile, the federal government has released more details of its new rules for travellers from China, which take effect from Thursday. Amongst other things, they will have to test negative for the coronavirus 48 hours before departure, and people who use a rapid antigen test must have it administered and supervised by a medical practitioner.

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‘Safety first’: business leader backs virus testing for China

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Original article by Georgie Moore
The Australian Financial Review – Page: 2 : 4-Jan-23

Former Australia-China Council chairman Warwick Smith has expressed support for the federal government’s move to impose COVID-19 testing requirements on travellers from China. Smith does not expect it to have any impact on the ability of Australian companies to do business in China, amid signs of improving relations between the two nations. He adds that other countries are adopting similar measures. Meanwhile, the Opposition has questioned the government’s decision to ignore the advice of Chief Medical Officer Paul Kelly, who does not believe that the new testing requirements are necessary.

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AUSTRALIA-CHINA COUNCIL,AUSTRALIA. DEPT OF HEALTH

Albanese plan has dealt a blow to east coast gas supply

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Original article by Samantha Hutchinson
The Australian Financial Review – Page: Online : 23-Dec-22

APPEA CEO Samantha McCulloch has warned that the federal government’s intervention in the energy market will deter future investment and affect gas supply on the east coast. She adds that Senex Energy’s decision to put a $1bn expansion of its Surat Basin projects on hold is exactly what the industry warned about when the government moved to impose gas price caps. However, the intervention has been defended by Energy Minister Chris Bowen, who argues that Australian industries would have collapsed in 2023 if Labor had taken no action.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, SENEX ENERGY LIMITED, AUSTRALIA. DEPT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER

Wong warns of hard issues

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Original article by Andrew Tillett, Michael Smith
The Australian Financial Review – Page: 1 & 4 : 21-Dec-22

Foreign Minister Penny Wong is the first federal government minister to visit China since 2019. Her meeting with Chinese counterpart Wang Yi on Wednesday will coincide with the 50th anniversary of diplomatic relations between the two countries. Wong has downplayed expectations that her visit to China will result in an improvement in the strained relations between the two nations, noting that many of the hard issues will take time to resolve in Australia’s interests. Wong has indicated that she will push for China to ease restrictions on Australian exports and to release two Australians who have been detained on national security charges.

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AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Secret $8bn sweetheart energy deal

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Original article by Simon Benson
The Australian – Page: 1 & 6 : 21-Dec-22

The federal and NSW governments have struck a $7.8bn joint funding deal for eight electricity transmission and Renewable Energy Zone projects across the state. The deal has been negotiated to secure NSW’s support for the federal government’s coal price caps when state parliament is recalled on Wednesday. The federal government will contribute $4.7bn in funding for the projects via its Rewiring the Nation policy. The joint funding will be used to connect the Snowy Hydro 2.0 project and a number of renewable energy zones into the national grid.

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Robodebt question minister can’t answer

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Original article by Catie McLeod
The Australian – Page: 2 : 14-Dec-22

Former human services minister Marise Payne appeared before the royal commission into the robodebt scheme on Tuesday. The inquiry has been told that former social security minister Scott Morrison had been advised in late February 2015 that policy and legislative changes would be required in order to implement the scheme. However, Payne has told the inquiry that she was unable to explain how this advice had "disappeared" by the time the expenditure review committee met to discuss the robodebt scheme in late March of that year.

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AUSTRALIA. ROYAL COMMISSION INTO THE ROBODEBT SCHEME

Top economists urge government to rethink stage three tax cuts

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Original article by Shane Wright
The Age – Page: Online : 14-Dec-22

Prime Minister Anthony Albanese has consistently stated that Labor will not back down on its election commitment to proceed with the Coalition’s stage-three personal income tax cuts. However, labour economist Jeff Borland and former Reserve Bank governor Bernie Fraser are among 100 financial experts who have sent an open letter to Albanese urging his government to reconsider the tax cuts. They contend that the tax cuts are unaffordable in their current form given the changes in the economic and budget outlook since the package was legislated in 2019.

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