BUDGET – AUSTRALIA

Treasury warns on Australia’s debt

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Original article by John Kehoe
The Australian Financial Review – Page: 9 : 20-Nov-18

The federal government’s net debt was $342bn at the end of 2017-18, which equates to 18.6 per cent of GDP. Although this is relatively low compared with many nations, Treasury secretary Philip Gaetjens says debt needs to be reduced to ensure that Australia is prepared for potential economic shocks in the future. He notes that Australia’s healthy fiscal position in 2007 helped the economy to ride out the global financial crisis. Gaetjens has also expressed concern about a blowout in global debt in the wake of the GFC.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Budget moves closer to surplus on back of RBA upgrade

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Original article by John Kehoe
The Australian Financial Review – Page: 2 : 8-Nov-18

The federal government’s May 2018 Budget papers had forecast average real GDP growth of 2.75 per cent in 2018-19, rising to three per cent in 2019-20. The Budget could potentially return to surplus earlier than projected if the government upwardly revises its GDP forecasts in line with the latest forecasts issued by the Reserve Bank. The government will update its forecasts in December. Peter Downes of Outlook Economics says a surplus is possible in 2018-19, depending on the outlook for commodity prices, the Australian dollar and profits in the mining sector.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, OUTLOOK ECONOMICS, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF FINANCE

Windfall tax take balancing the books

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Original article by David Uren
The Australian – Page: 4 : 26-Oct-18

New figures show that the federal government had a balanced Budget in the 12 months to September, with cash receipts and expenditure both totalling $257.4bn. Meanwhile, the deficit for the first three months of 2018-19 was just $10.5bn, well below the forecast of $19.5bn in May. The figures also show that company tax revenue was 13.8 per cent higher than in the first quarter of 2017-8 and personal income tax revenue was 6.3 per cent higher. Finance Minister Mathias Cormann says the improved Budget position will be at risk if Labor wins the next election.

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

Budget could balance this financial year

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 15-Oct-18

Finance Minister Mathias Cormann has indicated that the Budget bottom line was $6.6bn ahead of expectations in the first two months of 2018-19. The federal government has forecast a Budget deficit of $14.5bn for 2018-19, and the deficit was $8.9bn for the 12 months to 31 August. The government expects to achieve a surplus in 2019-20, but economist Chris Richardson says it could potentially do so in 2018-19. However, he says this will depend on the health of the economy and spending restraint by the government.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY

Surplus in sight ahead of election

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Original article by David Uren, Rick Morton
The Australian – Page: 1 & 2 : 26-Sep-18

The Treasury has released figures showing that the Budget deficit for 2017-18 was $10.1bn, which equates to just 0.6 per cent of GDP. Treasury had forecast in May that the deficit for 2017-18 would be $18.2bn, and the initial forecast in the May 2017 Budget was for a deficit of $29.1bn. Factors such as jobs growth, a higher tax take and reduced government spending contributed to the improvement in the Budget position from a deficit of $33.2bn in 2016-17. However, Treasurer Josh Frydenberg has downplayed suggestions of a potential return to surplus in 2018-19.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF SOCIAL SERVICES

Coalition picks spend over surplus

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 25-Sep-18

The federal government will release the final Budget figures for 2017-18 on 25 September, which are expected to show that the deficit for the financial year was around $10bn. The government is set to retain its target date of 2019-20 for a return to a surplus, and sources have indicated that an earlier return to surplus is possible but unlikely. The government has announced additional expenditure of $3.8bn over four years since handing down the May 2018 Budget, and around $20bn over the next decade.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Bottom line pushes budget closer to surplus

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Original article by David Uren
The Australian – Page: 4 : 27-Aug-18

The Australian Government’s May 2018 Budget had forecast a 2017-18 deficit of $14.5bn. Economists expect the final figure – which will be disclosed by the end of September – to be slightly below this. Company tax receipts for the full year are likely to be in line with Budget projections, although overall government revenue was tracking slightly below forecasts during the first 11 months of the financial year. Shane Oliver of AMP Capital says incoming Treasurer Josh Frydenberg is likely to face some revenue challenges in the medium-term.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AMP CAPITAL INVESTORS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, S&P GLOBAL INCORPORATED

Deloitte claims tax cuts are unaffordable

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Original article by Ben Potter
The Australian Financial Review – Page: 9 : 23-Jul-18

Deloitte Access Economics’ June Business Outlook contends that the Budget is not yet healthy enough for the federal government to commit to long-term tax cuts. Shadow treasurer Chris Bowen claims that Deloitte’s comments are an indictment of the government’s tax plans, which he contends will increase the prospect that more cuts to health and education will be needed over the next 10 years. Deloitte notes that a slump in property and a decline in the Chinese economy could bring about an end to the current revenue surge that the Budget is enjoying.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Cash ban lacks hard evidence: ACCI

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 5-Jul-18

The Australian Chamber of Commerce & Industry has questioned whether the Federal Government’s proposal to limit cash payments to $10,000 will be effective in combating the cash economy. The ACCI has warned that the ban, which was announced in the May 2018 Budget and is based on the recommendations of the black economy taskforce, could potentially undermine the integrity of the financial system. Australian Bankers’ Association CEO Anna Bligh has called for a sufficient transition period for bank customers to adapt to the proposed policy.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF FINANCE, KPMG AUSTRALIA PTY LTD

$1bn increase in company tax take boosts the case for reform

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Original article by Adam Creighton
The Australian – Page: 6 : 28-Jun-18

The Federal Government has released data showing that company tax revenue for 2017-18 will be $A1.1bn higher than had been forecast in its May 2018 Budget. Finance Minister Mathias Cormann has also advised that company tax revenue for 2017-18 is expected to be $A9.2bn higher than the $A78.6bn that the government had forecast in its Budget update in late 2016. Cormann also revealed that a crackdown on tax avoidance has resulted in the recovery of $A2.7bn in unpaid taxes from multinationals.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN LABOR PARTY