BUDGET – AUSTRALIA

ALP in front but Election too close to call: ALP 51% cf. L-NP 49%; Roy Morgan Government Confidence falls to 98 – lowest since Turnbull became PM.

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 2-May-16

A multi-mode Morgan Poll on Federal voting intention has found that support for Australia’s ruling Liberal-National Coalition on a two-party preferred basis has risen by one per cent to 51 per cent. The poll, which was carried out on the weekends of 23-24 April and 30 April-1 May 2016, also shows that the Coalition’s primary vote has fallen by 0.5 to 40 per cent per cent, while the Roy Morgan Government Confidence Rating has fallen by one point to 98. Roy Morgan Research executive chairman Gary Morgan says the looming Federal Election means tomorrow’s Federal Budget is the Turnbull Government’s best chance to shape the narrative and lay out the ground on which this year’s Federal Election will be fought. The Government has clearly gone into "election-mode" already with the announcement last week of a $50 billion defence spending commitment to build 12 new Shortfin Barracuda submarines in South Australia – although under contract to French company DCNS.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DIRECTION DES CONSTRUCTION NAVALES

Tax cut to 27.5pc for SMEs while big end of town waits

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Original article by Sid Maher
The Australian – Page: 1 & 4 : 3-May-16

The Australian Government’s May 2016 Budget will include a one per cent reduction in the small and medium enterprise tax rate, to 27.5 per cent. The lower tax rate is expected to apply to companies with turnover of up to $A5m, compared with a threshold of $A2m at present. Unincorporated businesses and sole traders are also expected to receive tax relief in the Budget. However, the tax rate for large companies will remain at 30 per cent, although the Government plans to progressively reduce it to 25 per cent.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Tighter controls on super top-ups

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Original article by David Crowe
The Australian – Page: 1 & 4 : 3-May-16

The Australian Government’s May 2016 Budget will include new limits on personal contributions to superannuation funds and an increase in the tax on super contributions by people whose annual income exceeds $A250,000. The Budget will also feature superannuation measures for people on low incomes, as well as women who go on maternity leave. There will also be changes to the "transition to retirement" regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Diversity key for ABC, says Guthrie

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Original article by Michael Bodey
The Australian – Page: 3 : 3-May-16

Former Google executive Michelle Guthrie officially succeeded Mark Scott as MD of the ABC on 2 May 2016. She has called for greater diversity in the ABC’s staff and its content, to ensure that the public broadcaster is relevant to all Australians. Meanwhile, Guthrie will appear before a Senate estimates committee on 5 May, while the ABC’s funding is likely to be retained at about its current level in the Australian Government’s Budget.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, GOOGLE INCORPORATED, BRITISH BROADCASTING CORPORATION, FOXTEL MANAGEMENT PTY LTD, SKY PLC, STAR TV, PROVIDENCE EQUITY PARTNERS INCORPORATED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Company tax cuts: in the future

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Original article by Phillip Coorey, Patrick Durkin, Jamie Freed
The Australian Financial Review – Page: 1 & 4 : 2-May-16

The Australian Government’s May 2016 Budget is expected to provide tax relief for small and medium enterprises. However, the Government is likely to opt to phase in a reduction in the corporate tax rate over a period of time. The Business Council of Australia continues to push for the tax rate for all businesses to be initially reduced to 28.5 per cent, and eventually to just 25 per cent. Meanwhile, some business leaders argue that a priority for the Budget should be ensuring that government spending is sustainable.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, FORTESCUE METALS GROUP LIMITED – ASX FMG, SEEK LIMITED – ASX SEK, AUSTRALIA POST, AUSTRALIA. DEPT OF THE TREASURY, KPMG AUSTRALIA PTY LTD, NESTLE AUSTRALIA LIMITED, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN LABOR PARTY, SQUARE PEG CAPITAL PTY LTD

Super curbs to top up women

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 2-May-16

The Australian Government’s May 2016 Budget will include a scheme that is similar to the Low Income Superannuation Contribution, which provides people on low incomes with a government co-contribution. Treasurer Scott Morrison says the "top-up" scheme will be funded via a reduction in superannuation tax concessions. The Budget will also include an increase in the $A80,001 income tax threshold in order to combat so-called bracket creep.

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

Budget to reopen uni fees fight

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 29-Apr-16

The Australian Government’s May 2016 Budget will include the deregulation of university fees. However, fees may be capped rather than allowing universities to set their own fees. The Senate rejected the Government’s previous attempt to fully deregulate higher education fees, which was a key initiative in the highly unpopular 2014 Budget. The Budget will also include reduced funding for schemes such as the Higher Education Participation & Partnerships Program and the Promoting Excellence in Learning & Teaching in Higher Education program.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIAN LABOR PARTY, UNIVERSITY OF TASMANIA

Slashed TV fee delivers windfall

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Original article by Jake Mitchell
The Australian – Page: 4 : 29-Apr-16

The office of Communications Minister Mitch Fifield has declined to comment on speculation that the Australian Government’s May 2016 Budget will include a reduction in TV broadcasters’ licence fees. Free-to-air networks have lobbied the Government in the lead-up to the Budget, and some media reports have suggested that it will agree to their request. Pay-TV group Foxtel has argued that any reduction in licence fees should be accompanied by changes to the anti-siphoning list for sports events.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, WIN CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, NETFLIX INCORPORATED

Deflation raises budget rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 28-Apr-16

The consumer price index fell by 0.2 per cent in the March 2016 quarter, with year-on-year growth of 1.3 per cent. The latest inflation data has raised the prospect that the Reserve Bank of Australia could cut official interest rates on 3 May, when the Federal Government will also deliver the 2016 Budget. National Australia Bank now expects the cash rate to be reduced in May, while financial markets now regard the chance of a rate rise to be 55 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED

High earners may cop super tax rises

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 27-Apr-16

The Australian Government’s May 2016 Budget might include reducing the income threshold for the 30 per cent tax rate for superannuation contributions from $A300,000 to $A250,000. This is the same threshold that was proposed by the Opposition in 2015. Meanwhile, the Government is believed to have ruled out reducing the level of super contributions that attract the concessional tax rate from $A30,000 a year to $A20,000. Other super changes include abolition of the anti-detriment payment and transition-to-retirement provisions.

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