BUDGET – AUSTRALIA

Tax bracket creep to hit poorer half the hardest

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Original article by David Uren
The Australian – Page: 6 : 30-Mar-16

Economic modelling suggests that by 2020 so-called "bracket creep" is likely to wipe out Australian households’ gains from a series of tax cuts since 2004. The Australian Nat­ional University’s modelling indicates that unless the Federal Government’s May 2016 Budget includes income tax cuts, Australians on the lowest incomes may face the largest increase in their tax burden in the next four years. Treasurer Scott Morrison has ruled out personal income tax cuts.

CORPORATES
AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR SOCIAL RESEARCH, AUSTRALIA. DEPT OF THE TREASURY

Mining sector backs 20pc company rate

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 29-Mar-16

A report produced by Canadian academic Jack Mintz has concluded that Australia’s corporate tax rate is uncompetitive, and proposes a progressive reduction from 30 per cent to just 20 per cent. The report was commissioned by the Minerals Council of Australia. The Federal Government’s May 2016 Budget is widely tipped to include a reduction in the company tax rate.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Scott says ABC must tackle ‘too narrow’ editorial focus

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Original article by Gina Rushton
The Australian – Page: 2 : 29-Mar-16

ABC MD Mark Scott says any cut in funding for the public broadcaster in the Australian Government’s May 2016 Budget could result in job losses and a reduction in content. He adds that a funding cut would result in a 10 per cent reduction in the ABC’s news budget. Scott, who will shortly step down after a decade in the role, also says the ABC has "strong editorial standards" but must ensure that it provides sufficiently broad editorial coverage.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION

Lower taxes to wait for spending cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 16-Mar-16

Treasurer Scott Morrison has indicated that the Australian Government’s May 2016 Budget will include a reduction in superannuation tax concessions. However, he has warned that this measure will not be sufficient to finance a significant income tax cut. Morrison says a reduction in government spending rather than increasing other taxes is the best strategy in both the short- and long-term for reducing taxes.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

PM ‘won’t blow’ iron ore bonus

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 11-Mar-16

The benchmark iron ore price has fallen below $US60 per tonne, although it remains significantly above the forecast of just $US39/tonne in the Australian Government’s mid-year Budget update. A sustained upturn in the price of the steel input could potentially boost government revenue by up to $A15bn over four years. However, government sources have indicated that the additional revenue will be used to reduce the deficit instead of financing larger tax cuts than the modest reduction that the Government is planning.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RESERVE BANK OF NEW ZEALAND, EUROPEAN CENTRAL BANK, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION

Resources surge offers PM hope of budget boost

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Original article by David Uren
The Australian – Page: 1 & 2 : 9-Mar-16

The Australian Government’s Budget bottom line is expected to be boosted by the rebound in commodity prices. Iron ore and crude oil prices have rallied in recent weeks, which may help to offset the $A7bn in forgone government revenue due to the sharp downturn in commodity prices in 2015. The iron ore price has risen above $US60 per tonne in early March, compared with the Government’s revised forecast of just $US39/tonne in its mid-year Budget update in December.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, INTERNATIONAL MONETARY FUND, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Early budget talk, election options narrow

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 8-Mar-16

The Australian Government is considering moving the Budget forward one week to 3 May 2016. Should it opt to call a double-dissolution election, it must do so no later than 11 May in order to hold such an election on its preferred date of 2 July. A half-Senate election in August is also being considered. The bill to reinstate the Australian Building & Construction Commission remains a potential trigger for a double-dissolution election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, LIBERAL PARTY OF NEW SOUTH WALES

Iron ore rally could mean budget windfall

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Original article by Mark Mulligan, Gareth Hutchens
The Australian Financial Review – Page: 7 : 22-Feb-16

The iron ore price has rallied to its highest level in three months, and it is now higher than the price that was forecast in the Australian Government’s 2015 mid-year Budget update. Chris Richardson of Deloitte Access Economics estimates that Government revenue could be boosted by about $A1.2bn if the iron ore price remains at around its current level until the mid-year update in November 2016. Paul Bloxham of HSBC adds that the LNG price will also be a significant factor for the Budget update.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Infrastructure financial backing falls by $16b

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 8-Feb-16

The "asset recycling program" that was announced in the Australian Government’s May 2014 Budget was expected to generate $A126.3bn worth of infrastructure investment by the states and the private sector. However, new figures show that this estimate has been scaled back to $A110bn. The Federal Government’s original proposal to invest $A50bn on infrastructure projects has in turn been reduced by $A1.4bn.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT

Terms of trade slump mires budget outlook

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 29-Jan-16

The Australian Government’s mid-year budget update in December 2015 had forecast a 10.5 per cent decline in the nation’s terms of trade in 2015-16. However, the latest trade data has prompted analysts to estimate that the terms of trade declined by between 4.5 per cent and 5.2 per cent in the December 2015 quarter. The downturn in the prices of key export commodities have hit the terms of trade, which may in turn significantly impact on government revenue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, INDUSTRY SUPER AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED, FITCH RATINGS LIMITED