Pressure to extend wage plan to all ages

Original article by Geoff Chambers, Ewin Hannan
The Australian – Page: 6 : 12-Oct-20

Prime Minister Scott Morrison says the federal government will not agree to any concessions to get its JobMaker wage subsidy scheme through Parliament. Labor and the Senate crossbenchers have expressed concern that the scheme could be rorted and is too focused, given that it is only available to employers who hire people aged up to 35. Shadow treasurer Jim Chalmers says the JobMaker scheme leaves 928,000 older Australians "in the lurch", and says the existing incentive scheme for employing people aged 50+ has been a "monumental failure". Unions have warned that the government’s wage subsidy scheme for apprentices could also be exploited.

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

Cash to go: the tax cuts start to flow

Original article by Greg Brown
The Weekend Australian – Page: 1 & 7 : 10-Oct-20

The omnibus bill containing the federal Budget’s key tax measures was passed by both houses of Parliament on 9 October. The stage-two income tax cuts are expected to begin flowing through to workers’ take-home pay in November, after the Australian Taxation Office adjusts its withholding tax schedules. The omnibus bill also provides tax relief for corporate Australia, including a business investment allowance, a loss carry-back scheme and changes to the fringe benefits tax regime that will benefit small businesses.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Budget updates to push growth agenda

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Apr-20

The federal government will release a statement on the impact of the coronavirus on the domestic economy when parliament resumes in May. Amongst other things, it will outline how much the government has spent on stimulus measures to date. The Coalition also intends to release new economic forecasts in June, which take into account the likely future impact of the pandemic. Labor and former Treasury official Greg Smith have previously urged the government to release an economic update in the near-term, arguing that it is too long to wait until the Budget in October.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Big business, blazes put heat on surplus

Original article by Geoff Chambers
The Australian – Page: 1 & 2 : 21-Jan-20

Treasurer Josh Frydenberg has stressed that it is too soon to estimate the likely impact of the bushfires crisis on the economy and the federal government’s projected Budget surplus for 2019-20. He is believed to be considering whether to include new tax incentives for the business sector in the May Budget. However, Australian Industry Group CEO Innes Willox says the government should introduce an investment allowance immediately in order to stimulate the economy. The Business Council of Australia also recently called for a new investment allowance.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, THE AUSTRALIAN INDUSTRY GROUP, BUSINESS COUNCIL OF AUSTRALIA

Recovery funds to hit budget

Original article by Geoff Chambers, Rosie Lewis, Patrick Commins, Ean Higgins
The Australian – Page: 1 & 4 : 15-Jan-20

Prime Minister Scott Morrison has confirmed that the Budget bottom line will be impacted by the federal government’s disaster relief measures. However, Morrison has stressed that his priority is to provide bushfire victims with the support they need, now and over the next several years. The government has announced an initial $100m funding package to support farmers, fishers and foresters who have been affected by the bushfires. Details of a $50m funding package for charities and financial counsellors to assist bushfire victims will be announced on 15 January.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Business to PM: Get economy moving

Original article by John Kehoe
The Australian Financial Review – Page: 3 : 20-Dec-19

The Business Council of Australia has called on the federal government to maintain its surplus goal as part of its Budget submission. The BCA has urged the government to help stimulate the economy through the adoption of an investment allowance, reducing red tape for infrastructure projects, and by making structural changes to the tax system over the longer-term. The BCA’s submission also calls for measures to boost workers’ skills, along with a new industry policy.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, WOODSIDE PETROLEUM LIMITED – ASX WPL

Fast-tracked income tax cuts unlikely

Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 18-Dec-19

Treasurer Josh Frydenberg has not ruled out bringing forward the next stage of the federal government’s income tax cuts package, which is due to take effect in mid-2022. However, sources have indicated that this is unlikely given the reduction in projected Budget surpluses over the next four years. Meanwhile, Chris Richardson of Deloitte Access Economics argues that bringing forward the second stage of the tax cuts to 2020-21 would require the iron ore price to remain about $US15 per tonne higher throughout that financial year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BUSINESS COUNCIL OF AUSTRALIA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

Surplus to survive $30bn blow

Original article by Simon Benson
The Australian – Page: 1 & 4 : 16-Dec-19

The federal government’s mid-year economic and fiscal outlook is forecast to confirm that the Budget will remain in surplus for the next four years. However, government revenue is expected to be up to $30bn lower than projected in the 2019 Budget, due to expectations that global and domestic economic growth will be lower than was forecast in April. Growth in wages is also expected to be lower than was forecast in the Budget. Meanwhile, the government is expected to maintain its forecast that the price of iron ore will average $US55 a tonne in 2019-20, even though it is significantly higher at present.

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

Slide in wages could risk tax cuts, surplus

Original article by Matthew Cranston
The Australian Financial Review – Page: 9 : 10-Dec-19

The Wage Price Index growth rate for 2019-20 is forecast to be 2.75 per cent, but wages increased by just 2.2 per cent in the September quarter. Westpac economist Bill Evans expects the federal government to downgrade its wage growth forecast in the mid-year budget update; he warns that this in turn may affect the size of the surplus and the Coalition’s ability to bring forward the second stage of its income tax cuts package. Evans notes that the price of iron ore is trading well above the government’s forecasts, which will help offset any revenue shortfall from slowing wages growth.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, DELOITTE ACCESS ECONOMICS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, AUSTRALIA. DEPT OF FINANCE

Treasurer warns of ageing bill

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

Treasurer Josh Frydenberg will use a speech on 19 November to defend the federal government’s commitment to keeping the Budget in surplus. He will tell the Committee for Economic Development of Australia that a balanced Budget will enable the government to begin paying down debt, respond to disasters and address the long-term needs of an ageing nation. Frydenberg will emphasise the importance of population, participation and productivity in addressing the latter issue, noting that action is needed to boost productivity in particular.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET