BUDGET – AUSTRALIA

Hockey rejects recession fears

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 11-May-15

The Australian Government’s Mid-Year Economic and Fiscal Outlook had forecast GDP growth of 2.5 per cent in 2014-15. This is expected to be scaled back in the May 2015 Budget, but Treasurer Joe Hockey has downplayed suggestions by Macroeconomics’ Stephen Anthony that there is the potential for a recession in 2016. Meanwhile, Hockey is confident that the Government can keep the unemployment rate at no more than 6.5 per cent, compared with 6.2 per cent at present.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MACROECONOMICS.COM.AU PTY LTD, RESERVE BANK OF AUSTRALIA

Budget may move on super, Grattan warns

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Original article by Sally Patten
The Australian Financial Review – Page: 14 : 1-Apr-15

The Grattan Institute has suggested that the Australian Government’s May 2015 Budget could feature changes to tax breaks for superannuation contributions. CEO John Daley says such measures could potentially include reducing the annual contributions limit or the salary threshold at which a higher tax on contributions applies

CORPORATES
GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE TREASURY, TAXPAYERS AUSTRALIA INCORPORATED

Google tax to hit profit shifting

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 5 : 1-Apr-15

The Australian Government’s May 2015 Budget will include tax measures aimed at addressing the problem of profit-shifting by multinational corporations. The so-called "Google tax" will be modelled on the UK’s Diverted Profits Tax. The Australian Labor Party recently unveiled measures intended to combat profit-shifting. The Budget will also include a levy on bank deposits, while the small business sector will receive a tax cut

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GOOGLE INCORPORATED, GROUP OF TWENTY (G-20), AUSTRALIAN TAXATION OFFICE, THE GROUP OF EIGHT LIMITED, AUSTRALIA. DEPT OF EDUCATION AND TRAINING

Budget woos small firms, start-ups

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 25-Mar-15

The Australian Government’s May 2015 Budget will include tax relief for small businesses, including those that are not incorporated. There were concerns that they would not receive the proposed 1.5 per cent reduction in the company tax rate for small businesses. The Government may also introduce accelerated depreciation for assets held by small businesses, while it intends to wind back changes to employee option schemes that were implemented by the Australian Labor Party

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

Big pressure to scrap small firms tax cut

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 24-Mar-15

The Council of Small Business Australia has urged the Federal Government to abandon a proposed 1.5 per cent tax cut for small businesses. CEO Peter Strong argues that the tax cut that has been proposed for the May 2016 Budget will do little to improve business confidence. The council instead favours the introduction of an accelerated depreciation rate of 150 per cent for the sector, a move which is also supported by several government MPs

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Budget gets $80b worse under Libs

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Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 20-Mar-15

Analysis of the Australian Government’s Budget papers shows that the nation’s cumulative deficits for the three years to 2017-18 now total $A103.9bn. This compares with the Government’s forecast of $A24.5bn in deficits. The Government seems likely to achieve about $A8bn worth of savings that it has pursued since taking office in 2013. The budget deficit for 2014-15 is expected to exceed $A40bn, compared with the Government’s forecast of just $A24bn

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

Abbott loses the plot on debt

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 19-Mar-15

Prime Minister Tony Abbott seems to have abandoned his commitment to economic reform. He said on 18 March 2015 that the May 2015 Budget will be "dull". Abbott no longer insists on reducing debt as quickly as possible and accepts that it could take 40 years to achieve a Budget surplus. Australia’s national debt is currently at 15 per cent of GDP, but it is forecast to rise to 60 per cent by 2055

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD AND POOR’S CORPORATION, BANK OF AMERICA CORPORATION, MERRILL LYNCH (AUSTRALIA) PTY LTD, BUSINESS COUNCIL OF AUSTRALIA

Iron ore budget hole gets bigger

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Mar-15

Prime Minister Tony Abbott says his government will balance the Budget in about five years’ time. However, the continued fall in the price of iron ore since late 2014 is expected to reduce government revenue by $A1.8bn a year. The mid-year Budget update had forecast an average iron ore price of $US60 per tonne, but it has since traded at a low of $US56. Meanwhile, Education Minister Christopher Pyne will press ahead with university reforms, despite the bill being rejected by the Senate for a second time on 17 March 2015

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA. DEPT OF SOCIAL SERVICES, LIBERAL PARTY OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD

Hockey pushes for cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 11-Feb-15

Treasurer Joe Hockey has conceded that the Federal Government’s May 2014 Budget may have been too ambitious. However, he argues that the Government must persist with Budget measures that have failed to pass the Senate if it is to achieve a surplus. These include the Medicare co-payment, deregulation of university fees and changes to the welfare system. Meanwhile, the Senate has passed the Government’s reforms to the regime for R&D tax breaks

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN LABOR PARTY, PALMER UNITED PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, ASC PTY LTD

Budget the big casualty

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 6 : 10-Feb-15

The Liberal Party of Australia’s motion for a leadership spill failed on 9 February 2015, although the future of Prime Minister Tony Abbott remains tenuous. The motion to dump Abbott was defeated by just 11 votes, but the leadership turmoil will put the Federal Government’s Budget strategy under scrutiny. Abbott has conceded that the May 2014 Budget may have been overly ambitious, and many of the initiatives outlined on Budget night are in doubt. There will also be much uncertainty about the upcoming 2015 Budget

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN LABOR PARTY