BUSINESS AND POLITICS – AUSTRALIA

Secret survey shows tax cuts won’t go to jobs

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Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 4 : 27-Mar-18

Business Council of Australia members were asked in a recent survey how they would respond in the event of company tax cuts. They were given four options: returning funds to shareholders; boosting investment; giving current employees a pay rise; or hiring more staff. It is understood that less than 20 per cent chose either of the last two options. The responses seem to be at odds with a letter that the BCA and 10 prominent CEOs sent to all senators in the week ending 23 March, in which it suggested that implementing tax cuts would ultimately lead to more jobs and greater wage growth.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, QANTAS AIRWAYS LIMITED – ASX QAN, MYOB GROUP LIMITED – ASX MYO, BHP BILLITON LIMITED – ASX BHP, ENERGYAUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, FORTESCUE METALS GROUP LIMITED – ASX FMG, JBS AUSTRALIA PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, WESFARMERS LIMITED – ASX WES

Tax cut will lift wages: CEOs’ push

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 22-Mar-18

Ten of the nation’s largest companies have committed to increasing their investment in Australia if the Federal Government progressively reduces the corporate tax rate from 30 per cent to 25 per cent. They argue that increased investment will in turn result in the creation of more jobs and ultimately boost wages. Meanwhile, independent senator Steve Martin has agreed to support the Enterprise Tax Plan Bill, although fellow independent Tim Storer has yet to decide his position. The Government requires the support of nine Senate crossbenchers.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, ENERGYAUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORIGIN ENERGY LIMITED – ASX ORG, MYOB GROUP LIMITED – ASX MYO, JBS AUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Regulator slams Facebook over breach

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 21-Mar-18

Australia’s Information Commissioner Timothy Pilgrim has advised that he is seeking clarification from Facebook as to whether the personal data of local users was compromised in the Cambridge Analytica scandal. Cambridge Analytica registered an Australian office in 2015, and it has been revealed that executives of the data analytics firm held meetings with Social Services Minister Dan Tehan and Liberal Party officials in April 2017. The firm is also believed to have met with Australian Labor Party officials. The Greens’ Jordon Steele-John says MPs should disclose any links with the firm.

CORPORATES
FACEBOOK INCORPORATED, AUSTRALIA. OFFICE OF THE FEDERAL PRIVACY COMMISSIONER, CAMBRIDGE ANALYTICA, AUSTRALIA. DEPT OF SOCIAL SERVICES, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, REPUBLICAN PARTY (UNITED STATES), BREITBART NEWS, SCL GROUP

Uber, Airbnb, Deliveroo urge labour law shake-up

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Original article by Patrick Durkin, David Marin-Guzman
The Australian Financial Review – Page: 16 : 20-Mar-18

The Senate inquiry into the future of work has received more than 140 submissions, with sharing-economy businesses arguing that existing workplace laws are outdated. Deliveroo has used its submission to propose the creation of a new category of employment for people who work in the "gig economy", noting that regulations governing casual employees are not compatible with its business model. Meanwhile, Google has stressed the need to retrain up to 3.5 million workers whose jobs may be at risk due to digital disruption.

CORPORATES
DELIVEROO, GOOGLE INCORPORATED, UBER AUSTRALIA PTY LTD, AIRBNB AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, SEEK LIMITED – ASX SEK, CENTRE FOR FUTURE WORK, FOODORA, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. PRODUCTIVITY COMMISSION, ATLASSIAN CORPORATION PLC

BCA seeks end to states’ green energy targets

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Original article by Mark Ludlow
The Australian Financial Review – Page: 10 : 13-Mar-18

The Business Council of Australia has called on business to get behind the Federal Government’s proposed National Energy Guarantee. It has also urged state and territory governments to abandon their renewable energy targets, claiming that they will undermine the NEG and increase energy prices. The BCA notes that the NEG must be sufficiently flexible to allow energy retailers to be in compliance with carbon emission requirements. Smaller retailers are worried that the NEG will increase power prices, and that it will help larger retailers to further increase their market dominance.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ALINTA ENERGY (AUSTRALIA) PTY LTD, AUSTRALIA. ENERGY SECURITY BOARD

Turnbull’s NEG may be dire for energy market

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Original article by Mark Ludlow, Angela Macdonald-Smith
The Australian Financial Review – Page: 12 : 9-Mar-18

The CEOs of 10 small electricity retailers have warned that the Federal Government’s proposed National Energy Guarantee could result in higher electricity prices. They have cautioned the Energy Security Board against making significant changes to the energy system, noting that an additional 3,800 megawatts of low-emissions electricity will become available in the next several years and a further 40,000 megawatts has been proposed. ERM Power’s founder Trevor St Baker also warns that the NEG could increase the market power of the three largest electricity retailers, which also generate electricity.

CORPORATES
AUSTRALIA. ENERGY SECURITY BOARD, ERM POWER LIMITED – ASX EPW, 1ST ENERGY, COVAU, LOCALITY PLANNING ENERGY HOLDINGS LIMITED – ASX LPE, ENERGY LOCALS, CLICK ENERGY, WINCONNECT, NEXT BUSINESS ENERGY, GLOBIRD, BLUENERGY GROUP LIMITED, COUNCIL OF AUSTRALIAN GOVERNMENTS, CLIMATE COUNCIL OF AUSTRALIA LIMITED, GRATTAN INSTITUTE

Cut tax, funds will flow: BHP

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Original article by Matt Chambers, Andrew White
The Australian – Page: 1 & 2 : 7-Mar-18

BHP Billiton CEO Andrew Mackenzie argues that Australia cannot afford to not reduce its company tax rate. He says BHP would commence some proposed resources projects in Australia within months of federal parliament passing an across-the-board company tax cut, adding that at least some of these projects are dependent on tax reform. Meanwhile, economic modelling by KPMG suggests that Australia’s GDP will be reduced by around $A5bn if the nation does not respond to the Trump administration’s tax cuts with similar reforms. About 25,000 jobs would also be at risk, according to KPMG.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KPMG AUSTRALIA PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, THE GOLDMAN SACHS GROUP INCORPORATED, BLUESCOPE STEEL LIMITED – ASX BSL, SHELL COMPANY OF AUSTRALIA LIMITED

Energy mess deters US investors

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Feb-18

DowDuPont’s executive chairman Andrew Liveris has warned that uncertainty over Australia’s energy policy is adversely affecting foreign investment intentions. He recently participated in a round-table discussion in the US with Prime Minister Malcolm Turnbull, state and territory leaders and the CEOs of major US companies. Liveris told the meeting that while Dow is keen to further invest in Australia, this is dependent on a competitive and reliable energy market. He also urged bipartisan support for the Federal Government’s National Energy Guarantee.

CORPORATES
DOWDUPONT INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, COUNCIL OF AUSTRALIAN GOVERNMENTS

Energy mess deters US investors

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Feb-18

DowDuPont’s executive chairman Andrew Liveris has warned that uncertainty over Australia’s energy policy is adversely affecting foreign investment intentions. He recently participated in a round-table discussion in the US with Prime Minister Malcolm Turnbull, state and territory leaders and the CEOs of major US companies. Liveris told the meeting that while Dow is keen to further invest in Australia, this is dependent on a competitive and reliable energy market. He also urged bipartisan support for the Federal Government’s National Energy Guarantee.

CORPORATES
DOWDUPONT INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, COUNCIL OF AUSTRALIAN GOVERNMENTS

‘There’s a lot of money in the room’

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Original article by John Kehoe
The Australian Financial Review – Page: 10 : 26-Feb-18

Seven Network owner Kerry Stokes says US President Donald Trump is more engaging than he had expected. Stokes is one of a number of Australian executives to have accompanied Prime Minister Malcolm Turnbull on his visit to the US, and whom Turnbull introduced to Trump. QIC CEO Damien Frawley said the White House was clearly a lot more organised than it has been portrayed in the media, while Business Council of Australia president Grant King said it was clear that Trump is "getting some things done".

CORPORATES
SEVEN NETWORK LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, QIC LIMITED, BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, IFM INVESTORS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, LEND LEASE GROUP LIMITED – ASX LLC, QANTAS AIRWAYS LIMITED – ASX QAN, RIO TINTO LIMITED – ASX RIO, AMP CAPITAL INVESTORS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLDMAN SACHS AUSTRALIA PTY LTD, PRATT INDUSTRIES PTY LTD