BUSINESS AND POLITICS – AUSTRALIA

New media reform brawl brews

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Original article by Darren Davidson, Jake Mitchell
The Australian – Page: 2 : 24-Feb-16

Regional TV broadcasters have welcomed the Federal Government’s proposed changes to cross-media ownership laws, particular new local content requirements. Both the "reach rule" and the "two-out-of-three rule" will be abolished if the reforms proceed. However, News Corp Australia’s executive chairman Michael Miller says the reforms should be more extensive, and should include the anti-siphoning list for sports broadcasts. Seven Group CEO Ryan Stokes agrees that the reforms are too limited.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, WIN CORPORATION PTY LTD, PRIME MEDIA GROUP LIMITED – ASX PRT, FOXTEL MANAGEMENT PTY LTD, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, APN NEWS AND MEDIA LIMITED – ASX APN, KIIS1065, PURE GOLD

Business v Barnaby in effects-test stoush

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Original article by Patrick Durkin
The Australian Financial Review – Page: 4 : 22-Feb-16

Australia’s new Deputy Prime Minister Barnaby Joyce says the National Party favours making changes to competition law to introduce a so-called "effects test". However, many blue-chip companies oppose any move to introduce changes to the misuse of market power provisions in order to protect small businesses. They include Woolworths, Wesfarmers, Insurance Australia Group and Boral.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PARTY OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BORAL LIMITED – ASX BLD, SYDNEY AIRPORT – ASX SYD, AUSTRALIA. DEPT OF THE TREASURY, FOXTEL MANAGEMENT PTY LTD, AGL ENERGY LIMITED – ASX AGK, TELSTRA CORPORATION LIMITED – ASX TLS, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, IGA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

It’s all about a cut in licence fees: Worner

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Original article by Jake Mitchell
The Australian – Page: 19 : 18-Feb-16

Seven West Media has posted a 2015-16 interim net profit of $A135.2m, compared with a loss of $A993.6m previously. Underlying net profit rose by 2.1 per cent to $A140.3m, but revenue eased 4.1 per cent to $A896.7m. The TV division’s EBIT rose by two per cent to $A185.4m and revenue fell by 2.1 per cent to $A662.9m, while the newspaper division’s earnings fell 22 per cent to $A24m. CEO Tim Worner says reducing TV broadcasting licence fees should be the highest priority on the Federal Government’s media reform agenda.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, PACIFIC MAGAZINES PTY LTD, MACQUARIE SECURITIES PTY LTD, AUSTRALIAN FOOTBALL LEAGUE, WIN CORPORATION PTY LTD, PRIME MEDIA GROUP LIMITED – ASX PRT, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, TOTALIZATOR AGENCY BOARD (WESTERN AUSTRALIA), RACING VICTORIA LIMITED

Negative gearing debate sparks divisions, passion

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Original article by Anne Hyland, Larry Schlesinger
The Australian Financial Review – Page: 1 & 4 : 17-Feb-16

Mayne Pharma director Roger Corbett has urged the Australian Government to leave the negative gearing regime unchanged, arguing that it has increased the wealth of people on middle incomes. Yellow Brick Road’s Mark Bouris also opposes any change to negative gearing, warning of the impact on economic growth and the investment market. However, former Perpetual fund manager Peter Morgan and ex-Reserve Bank board member Warwick McKibbin favour the abolition of negative gearing.

CORPORATES
MAYNE PHARMA GROUP LIMITED – ASX MYX, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, PERPETUAL LIMITED – ASX PPT, RESERVE BANK OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WAL-MART STORES INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Pay TV seeks early rounds of World Cup soccer in sport rights shake-up

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Original article by Max Mason
The Australian Financial Review – Page: 32 : 15-Feb-16

The Australian Subscription Television & Radio Association will lobby Communications Minister Mitch Fifield to remove some sports events from the anti-siphoning list. These include all non-Socceroos matches in the group stages of the soccer World Cup. ASTRA CEO Andrew Maiden notes that many sporting events are not of "national importance and cultural significance" and attract low ratings on free-to-air TV, and therefore should be removed from the list.

CORPORATES
AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, FEDERATION INTERNATIONALE DE FOOTBALL ASSOCIATION, WORLD CUP, SPECIAL BROADCASTING SERVICE (SBS), FREE TV AUSTRALIA LIMITED

Imputation query as company tax cut gives biggest bang

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 10-Feb-16

Prime Minister Malcolm Turnbull has ruled out increasing the GST to finance income tax cuts, after telling Coalition MPs that economic modelling has shown that it would not be economic feasible. The modelling showed that using a higher GST to finance company tax cuts would achieve the greatest economic benefit. Meanwhile, Australian Industry Group CEO officer Innes Willox has proposed reducing the company tax rate from 30 per cent to 20 per cent by scrapping the dividend imputation system.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, MACQUARIE UNIVERSITY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER, COUNCIL FOR THE AUSTRALIAN FEDERATION

Tax options shrink after GST retreat

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Original article by David Crowe
The Australian – Page: 1 & 4 : 8-Feb-16

The Australian Government may be reconsidering its plans to increase the GST, after Prime Minister Malcolm Turnbull suggested that there may be no net benefit from increasing the tax and cutting personal income tax rates. The Government is expected to look at alternatives such as changes to the negative gearing regime for property investors. However, Business Council of Australia CEO Jennifer Westacott says her organisation’s modelling shows that a GST increase that is offset by income tax cuts would be the best to boost the economy.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIA INSTITUTE LIMITED, UNIVERSITY OF CANBERRA. NATIONAL CENTRE FOR SOCIAL AND ECONOMIC MODELLING, AUSTRALIA. DEPT OF THE TREASURY

Don’t touch negative gearing, MPs warned

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Feb-16

The Property Council of Australia stresses the importance of negative gearing for housing. It will argue in a submission to the joint standing committee on economics’ inquiry into tax deductibility that negative gearing should be retained in its current form. The Property Council has warned that it could mobilise negatively geared voters in marginal seats to persuade politicians to leave negative gearing unchanged.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY

Palmer tops list of political generosity

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Original article by Primrose Riordan, Edmund Tadros, Ewin Hannan
The Australian Financial Review – Page: 7 : 2-Feb-16

Mining magnate Clive Palmer donated almost $A10 million to his own Palmer United Party in 2014-15. Annual disclosure returns, released by the Australian Electoral Commission, show that Palmer was the largest political donor in 2015. The total amount of political donations fell significantly, with the Liberal Party of Australia recording a 40 per cent decline in receipts.

CORPORATES
MINERALOGY PTY LTD, PALMER UNITED PARTY, QUEENSLAND NICKEL PTY LTD, COOLUM RESORT PTY LTD, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, BRUNSWICK PROPERTY VENTURE PTY LTD, EVER BRIGHT GROUP PTY LTD, CORMACK FOUNDATION PTY LTD, PHILIP MORRIS (AUSTRALIA) LIMITED, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA, AUSTRALIAN GREENS, VISY INDUSTRIES AUSTRALIA PTY LTD, PRATT HOLDINGS, AUSTRALIAN ELECTORAL COMMISSION

Treasury against debt tax trade-off

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Original article by Joanna Mather, Primrose Riordan
The Australian Financial Review – Page: 1 & 4 : 25-Jan-16

Federal Treasurer Scott Morrison says that reducing tax deductions will not generate sufficient revenue to fund tax reforms. However, the Treasury’s submission to parliament’s economics committee has argued against financing a corporate tax cut via the abolition of tax deductions for corporate debt. This view is shared by the Business Council of Australia and companies such as CSL and Inpex, which have also made submissions to the inquiry.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, CSL LIMITED – ASX CSL, INPEX CORPORATION, KPMG AUSTRALIA PTY LTD, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, LIBERAL PARTY OF AUSTRALIA