BUDGET – AUSTRALIA

Deficit repair slips even with profit surge: Access

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 5 : 1-May-17

Chris Richardson of Deloitte Access Economics is predicting a 2016-17 federal Budget deficit of more than $A38.3 billion, which is $A1.8 billion worse than predicted in the Government’s mid-year forecast. Richardson says that while a rise in company profits will eventually result in improved corporate tax collection, poor wages and jobs growth means that there will not be a comparable rise in personal tax collection. He forecasts that tax revenue will grow by 6.2 per cent in real terms in 2017-18.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA

Government considering $100m TV licence fee cuts

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 1-May-17

The Australian Government’s May 2017 Budget may include broadcasting licence fee relief for free-to-air TV networks. Options that are said to be under consideration include abolishing the existing revenue-based licence fee or replacing it with a flat fee. The licence fee reforms are intended to offset the impact of a proposed ban on gambling advertisements during live sports broadcasts. The anti-siphoning list may also be revised to compensate pay-TV groups for the loss of gambling ad revenue.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NICK XENOPHON TEAM, ONE NATION PARTY

Budget debt will finance airport, rail

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Apr-17

Prime Minister Malcolm Turnbull has identified the proposed inland rail link between Melbourne and Brisbane as a "very high priority". He has also given indications that the rail link and Sydney’s second airport will be at least partially funded by the government via "good" debt. The May 2017 Budget will make a distinction between "good" and "bad" debt. Treasurer Scott Morrison notes that while the former generates income that can be used to repay debt, the latter is still needed to provide essential services.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, NBN CO LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, SYDNEY AIRPORT – ASX SYD

Abolish TV licence fees, tax Google and Facebook: Xenophon

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 26-Apr-17

The Australian Government’s May 2017 Budget is tipped to include a further reduction in TV broadcasting licence fees. Independent senator Nick Xenophon says the fees are "anachronistic" and should be scrapped for free-to-air networks. Xenophon supports increased restrictions on gambling advertisements during live sports broadcasts, but he rejects suggestions that he has struck a deal with the Government on the issue. Xenophon also favours imposing a turnover tax on Google and Facebook.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY

Students face higher ed budget cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 19-Apr-17

The Australian Government’s May 2017 Budget could include new measures that target university students and graduates. Stalled measures in the 2014 Budget are tipped to be abandoned, prompting speculation that the Government will seek to offset the failed $A7bn worth of spending cuts. These could potentially include an increase in students’ fees and a reduction in the income threshold for the repayment of HECS-HELP debts. At present, graduates must begin repaying their student debt when their annual income reaches $A54,869.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING

Turnbull to face clash on housing

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Original article by Simon Benson, David Uren, Rachel Baxendale, David Crowe
The Australian – Page: 1 & 4 : 13-Apr-17

A number of federal cabinet ministers and backbenchers support a proposal to allow first-home buyers to access their superannuation. They will lobby Prime Minister Malcolm Turnbull to consider adopting the initiative as part of the May 2017 Budget’s policy on housing affordability. However, Turnbull has reiterated his view that super should be solely used to provide an income stream in retirement. Chris Richardson of Deloitte Access Economics has expressed a similar opinion.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PRESS CLUB (AUSTRALIA)

Forecast tax take out by $30bn

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Original article by David Uren
The Australian – Page: 2 : 13-Jan-17

The Parliamentary Budget Office has released its review of the Australian Government’s mid-year budget update. It shows that the forecast for revenue from personal income tax was $A21.1bn lower than in the May 2016 Budget, while company tax revenue was scaled back by $A6.7bn. Meanwhile, the budget update included savings of some $A10bn due to a reduction in the forecast cost of age pensions, carers’ payments and childcare subsidies. The forecasts for spending on health and education were largely unchanged from the Budget.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF HUMAN SERVICES. CENTRELINK

There’s little future in not debating funds use

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Original article by Judith Sloan
The Australian – Page: 4 : 23-Dec-16

The Mid-year Economic and Fiscal Outlook (MYEFO), issued on 20 December 2016, contains information that Future Fund’s net earnings will be included in MYEFO’s projections. Therefore, the projected surplus for 2020-21 of $A1 billion will be achieved by the inclusion of the planned withdrawals from the Future Fund in the national accounts. The matter deserves to be publically discussed.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Future Fund accounting switch saves AAA rating

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Original article by David Uren
The Australian – Page: 4 : 23-Dec-16

From 2020-21, profits generated by the Future Fund will be included in Australia’s budgets. Thus, a small surplus in that year will be achieved only because of a change in the fund’s accounting methodology. The Future Fund’s projected earnings of $A3.9 billion for 2019-20 are forecast to ensure a budget surplus of about $A1.1 billion in 2020-21.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, DELOITTE ACCESS ECONOMICS PTY LTD

Treasurer won’t pledge to a surplus

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 21-Dec-16

The expected Budget surplus of $A1.087bn in 2020-21 equates to about 0.05 per cent of GDP. Ratings agencies have warned that the Federal Government must achieve a surplus by 2020-21 in order to retain its triple-A credit rating, but Treasurer Scott Morrison claims that he has never committed to that target date. He says the Government will seek to balance the Budget as quickly and responsibly as possible, and stressed that this will require the support of Parliament.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS, KPMG AUSTRALIA PTY LTD, SEEK LIMITED – ASX SEK, MYOB GROUP LIMITED – ASX MYO, WESFARMERS LIMITED – ASX WES