BUSINESS AND POLITICS – AUSTRALIA

Nationals rally against energy plan

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Original article by Phillip Coorey, Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 7 : 11-Sep-17

The National Party’s federal council has passed a motion opposing a clean energy target. The same motion called for Australia’s renewable energy target to be set at 23 per cent in 2020, and for there to be no subsidisation of any energy source after that date. Meanwhile, Prime Minister Malcolm Turnbull and Energy Minister Josh Frydenberg are set to meet AGL Energy CEO Andy Vesey over the future of AGL’s Liddell coal-fired power plant. AGL wants to close it in 2022, but the Federal Government wants AGL to sell the plant.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

$9bn power hit for big firms

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Original article by Eli Greenblat, Damon Kitney
The Australian – Page: 1 & 4 : 7-Sep-17

National Australia Bank’s chief economist Alan Oster has forecast that higher energy costs will add 0.6 per cent to the headline inflation rate for the September quarter. Companies that are major energy users estimate that their electricity and gas costs will rise by $A9bn, which in turn will affect profit margins, jobs and investment. Meanwhile, AGL Energy has advised that it has made no commitment to sell its Liddell power station or keep it operating beyond the planned closure date of 2022. Prime Minister Malcolm Turnbull has claimed that AGL CEO Andy Vesey had indicated that the company would be open to selling the power station.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, RIO TINTO LIMITED – ASX RIO, MINERALS COUNCIL OF AUSTRALIA, DELTA ENERGY PTY LTD, GLENCORE PLC, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, TOMAGO ALUMINIUM COMPANY PTY LTD, THE AUSTRALIAN INDUSTRY GROUP, PACT GROUP HOLDINGS LIMITED – ASX PGH, COSTA GROUP HOLDINGS LIMITED – ASX CGC, BLUESCOPE STEEL LIMITED – ASX BSL

Rio Tinto pushes for GST shake-up

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Original article by James Thomson
The Australian Financial Review – Page: 19 : 7-Sep-17

Rio Tinto CEO Jean-Sebastien Jacques says the distribution of goods and services tax revenue is "unfair and counter-productive", and action is needed to ensure that Western Australia receives an equitable share of the revenue. Jacques has also used a Mining Week event to call for changes to the nation’s corporate tax regime, arguing that Australia now boasts the sixth-highest company tax rate among OECD nations, while he has called for a national approach to energy policy.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Shell chief expects gas export clampdown

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Original article by Andrew White
The Australian – Page: 17 & 20 : 7-Sep-17

Shell Australia chair Zoe Yujnovich says the Federal Government is likely to implement its Australian Domestic Gas Supply Mechanism in 2018. She forecasts that the Australian Energy Market Operator will announce a structural shortfall of gas in the next few weeks, although she adds that the ADGSM is unlikely to have much impact on Shell’s LNG exports. Yujnovich adds that there are indications of downward pressure on gas prices.

CORPORATES
SHELL COMPANY OF AUSTRALIA LIMITED, SANTOS LIMITED – ASX STO, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Time is past for banks royal commission policy

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Original article by David Crowe
The Australian – Page: 2 : 1-Sep-17

Australian banks are attracting increased regulatory scrutiny in the wake of the Commonwealth Bank’s money-laundering scandal. This has weakened the Australian Labor Party’s case for a royal commission into banks, as such an inquiry would take some time to set up if Labor wins the next federal election. Meanwhile, Labor may not be able to act on the inquiry’s recommendations until after the following election. Labor increased the Australian Securities & Investments Commission’s regulatory powers when it was previously in government, and it could so again without the need for a royal commission.

CORPORATES
AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Banks use rules to stifle rivals: Morrison

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 1-Sep-17

Federal Treasurer Scott Morrison says changes to the banking sector’s regulatory regime are needed as established banks are using the existing rules to stymie competition and make it hard for new players to enter the market. He has told a Bloomberg forum that the Federal Government’s proposed regulatory changes are aimed at empowering bank customers. Morrison has also ruled out making the Banking Executive Accountability Regime retrospective.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, BLOOMBERG LP, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN LABOR PARTY

Fix it and get back to economy, says BCA

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Original article by Andrew White
The Australian – Page: 4 : 30-Aug-17

Business Council of Australia CEO Jennifer Westacott has urged Parliament to resolve the standoff over marriage equality quickly in order to focus on economic policy. Westacott says the Federal Government must agree to a conscience vote if the majority of Australians support legalising same-sex marriage in the postal plebiscite. She has also criticised the "anti-business agenda" of Opposition Leader Bill Shorten regarding tax cuts for smaller companies and the taxation of trusts.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, QANTAS AIRWAYS LIMITED – ASX QAN

Tax war moves to smaller companies

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Original article by Nick Tabakoff
The Australian – Page: 4 : 24-Aug-17

The Australian Government will require up to 6,000 listed and private companies to disclose any "contestable" tax treatments in their financial accounts from fiscal 2019. The new disclosure rules, which were released by the Australian Securities and Investments Commission, have prompted criticism from tax experts. Paul Drum of CPA Australia says it is the Government’s latest crackdown in a "tax war" on the business sector, adding that the new rules will apply to both small and large companies

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CPA AUSTRALIA, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN ACCOUNTING STANDARDS BOARD, BDO CHARTERED ACCOUNTANTS AND ADVISERS

APRA can’t be enforcer and supervisor, NAB says

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 23-Aug-17

Banks have raised concerns about the proposed Banking Executive Accountability Regime (BEAR) in submissions to the Federal Government. The role of the Australian Prudential Regulation Authority under the new regime is a particular concern for the banking sector, given that it will have powers to fine banks up to $A200m for non-compliance. National Australia Bank has questioned the appropriateness of APRA having the dual roles of supervising and regulating the bank sector, while the ANZ Bank said more clarity is needed regarding the roles of APRA and the Australian Securities & Investments Commission under the BEAR reforms.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, FINANCE SECTOR UNION, CUSTOMER OWNED BANKING ASSOCIATION, OWNERSHIP MATTERS PTY LTD, AUSTRALIANSUPER PTY LTD

Tax break idea worthy, but unworkable

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Original article by David Crowe
The Australian – Page: 4 : 17-Aug-17

Senator Nick Xenophon’s proposal to provide a 40 per cent tax break for smaller media companies has merit, and it is likely to benefit the publishers of newspapers such as "The Saturday Paper" and websites like "The New Daily". However, the Federal Government would need to determine whether the local editions of overseas publications would be eligible for the tax break. There is also the question of whether taxpayers should subsidise small media outlets that would be competing with the monolithic ABC for both funding and audiences.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN BROADCASTING CORPORATION, SCHWARTZ MEDIA PTY LTD, THE NEW DAILY, THE GUARDIAN AUSTRALIA, DAILY MAIL AUSTRALIA, THE HUFFINGTON POST, POLITIFACT AUSTRALIA