BUSINESS AND POLITICS – AUSTRALIA

Wesfarmers in push for tax cuts

roymorgansocial Leave a comment

Original article by Eli Greenblat
The Australian – Page: 17 & 27 : 22-Feb-18

Wesfarmers has posted a 2017-18 interim net profit of $A212m, which is 86.6 per cent lower than previously. Group revenue rose 2.8 per cent to $A35.9bn, while Bunnings’ revenue in Australia and New Zealand was 10.2 per cent higher at $A6.566bn. Supermarket chain Coles posted revenue of $A19.978bn, which is in line with the previous corresponding period. Wesfarmers CEO Rob Scott has called for corporate tax cuts to ensure that Australian companies are globally competitive, adding that a lower tax rate will ultimately boost wages.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, COCA-COLA AMATIL LIMITED – ASX CCL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Big employers pile on the pressure over company tax

roymorgansocial Leave a comment

Original article by Simon Benson
The Australian – Page: 4 : 21-Feb-18

The retail industry has urged the Senate crossbenchers to support the Federal Government’s legislation to reduce the company tax rate from 30 per cent to 25 per cent. The Australian Retailers Association’s executive director Russell Zimmerman says the nation’s high corporate tax rate hinders the ability of retailers to hire additional staff and increase wages, while Woolworths CEO Brad Banducci says a lower tax rate would enable the company to increase its investment in its Australian business. The National Retail Association argues that a lower tax rate would result in the creation of more entry-level jobs in the sector.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, WOOLWORTHS GROUP LIMITED – ASX WOW, NATIONAL RETAIL ASSOCIATION LIMITED, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

PM takes CEOs on Trump mateship trip

roymorgansocial Leave a comment

Original article by John Kehoe
The Australian Financial Review – Page: 6 : 12-Feb-18

Executives from a number of leading Australian companies and organisations will accompany Prime Minister Malcolm Turnbull on his upcoming visit to the US. Seek, Wesfarmers and IFM Investors will be among the entities represented. Billionaire Anthony Pratt notes that there is over $A1 trillion worth of investment between Australia and the US, and that the US is both Australia’s most significant ally and its major investment partner. A number of state premiers will also be joining Turnbull.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SEEK LIMITED – ASX SEK, 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, ORICA LIMITED – ASX ORI, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, UNITED STATES. NATIONAL GOVERNORS ASSOCIATION, DEMOCRATIC PARTY (UNITED STATES), REPUBLICAN PARTY (UNITED STATES), GLENCORE AUSTRALIA PTY LTD, CORRS CHAMBERS WESTGARTH, BUSINESS COUNCIL OF AUSTRALIA

Cut tax and see wages grow

roymorgansocial Leave a comment

Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 2 : 12-Feb-18

The Federal Government’s legislation for an across-the-board reduction in the company tax rate will be put before the Senate in the week beginning 12 February. BHP Billiton Andrew Mackenzie, Qantas CEO Alan Joyce and Woodside Petroleum’s chairman-elect Richard Goyder have urged the Senate crossbenchers to pass the bill, warning that failure to do so will reduce Australia’s international competitiveness and deter investment. They also argue that reducing the tax rate for all companies will encourage businesses to hire more staff and increase wages.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESFARMERS LIMITED – ASX WES, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, ONE NATION PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AMERICAN AIRLINES INCORPORATED, FEDERAL EXPRESS CORPORATION, AT&T CORPORATION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, VISY INDUSTRIES AUSTRALIA PTY LTD

Use tax cuts to boost wages: ex-BCA boss

roymorgansocial Leave a comment

Original article by Simon Benson
The Australian – Page: 1 & 4 : 8-Feb-18

Former Business Council of Australia president Tony Shepherd says employees and shareholders of large companies should directly benefit from any reduction in the corporate tax rate via higher wages and increased dividend payouts. Many large companies in the US have announced wage rises in response to the Trump administration’s tax package. However, Treasurer Scott Morrison and Opposition Leader Bill Shorten have questioned the merits of a "social contract" in Australia if across-the-board corporate tax cuts are passed by federal parliament.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, McDONALD’S AUSTRALIA LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

News leaders unite to resist spy laws that could criminalise journalism

roymorgansocial Leave a comment

Original article by Dana McCauley
The Australian – Page: 24 & 26 : 5-Feb-18

The media industry has expressed concern about the broader implications of the Federal Government’s foreign interference bill on freedom of the press. Paul Whittaker, the editor-in-chief of "The Australian", says journalists could breach the new offence of handling classified information simply by seeking to confirm the validity of a document they have received. "Herald Sun" editor Damon Johnston warns that the legislation could potentially be used by a future government to silence the media, while the ABC’s John Lyons argues that media companies already have sufficient procedures in place for handling confidential information.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN BROADCASTING CORPORATION, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, UNIVERSITY OF TECHNOLOGY, SYDNEY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Journos face jail just for having information

roymorgansocial Leave a comment

Original article by Primrose Riordan
The Australian – Page: 1 & 6 : 31-Jan-18

The media industry has expressed concern about the potential implications of proposed foreign interference laws. Media, Entertainment & Arts Alliance CEO Paul Murphy has told a parliamentary committee that journalists and news editors could potentially face criminal charges simply for receiving confidential information. Foxtel’s Bruce Meagher warned that the pay-TV group could be forced to discontinue channels that are owned by foreign governments, while Georgia-Kate Schubert of News Corp says it is uncertain as to whether the legislation would apply to digital giants such as Facebook and Google.

CORPORATES
MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, FREE TV AUSTRALIA LIMITED, BRITISH BROADCASTING CORPORATION, AL JAZEERA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, THE GROUP OF EIGHT LIMITED

Cut tax to create jobs: CEOs

roymorgansocial Leave a comment

Original article by Joanna Mather, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 22-Jan-18

Walmart is among the US companies that are increasing their wage rates in response to the Trump administration’s tax reforms. Federal Treasurer Scott Morrison says Australian now needs to "catch" up to the US with regard to tax reform, noting that Labor’s opposition to the Government’s company tax package means the nation has missed the opportunity to take the lead on tax reform. Meanwhile, Qantas CEO Alan Joyce and MYOB CEO Tim Reed are among the business leaders who have emphasised the economic benefits of reducing the corporate tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, WAL-MART STORES INCORPORATED, QANTAS AIRWAYS LIMITED – ASX QAN, MYOB GROUP LIMITED – ASX MYO, XERO LIMITED – ASX XRO, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, APPLE INCORPORATED, AMP LIMITED – ASX AMP, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Bank probe a funding risk

roymorgansocial Leave a comment

Original article by Tom McIlroy, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 4 : 16-Jan-18

Fitch Ratings says Australian banks may face an increase in wholesale funding costs if the Federal Government’s royal commission further erodes trust in the sector. The ratings agency notes that the Australian banking sector is particularly reliant on offshore funding. Meanwhile, royal commissioner Kenneth Hayne is expected to seek public submissions shortly, but Small Business & Family Enterprise Ombudsman Kate Carnell says the inquiry must avoid being swamped by submissions. Financial services providers must lodge 50-page reports with the commission by the end of January.

CORPORATES
FITCH RATINGS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, HIGH COURT OF AUSTRALIA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Minerals Council: End rigid industrial laws

roymorgansocial Leave a comment

Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 11-Jan-18

The Minerals Council of Australia has used its pre-Budget submission to urge the Federal Government to pursue industrial relations reforms. Amongst other things, the MCA has proposed changes to workplace right-of-entry rules for unions, new restrictions regarding protected industrial action and an overhaul of the rules governing enterprise bargaining. Interim CEO David Byers has warned that Australia’s productivity and competitiveness will be adversely affected if there are no changes to the nation’s "outdated" workplace practices.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF EMPLOYMENT, GLENCORE PLC, ACTU