BUSINESS AND POLITICS – AUSTRALIA

Directors blast Coalition over tax

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Original article by Agnes King
The Australian Financial Review – Page: 5 : 21-May-15

Corporate directors have criticised the Australian Government for failing to include GST and superannuation in its tax reform agenda. Perpetual director Sylvia Falzon says tax reform is "pointless" if these issues are not part of the debate, while Wesfarmers director Jennifer Westacott argues that tax reform will encourage greater investment and workforce participation.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WESFARMERS LIMITED – ASX WES, BUSINESS COUNCIL OF AUSTRALIA, SAI GLOBAL LIMITED – ASX SAI, REGIS HEALTHCARE LIMITED – ASX REG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BRAMBLES LIMITED – ASX BXB, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, STOCKLAND – ASX SGP, BUSINESS COALITION FOR TAX REFORM

Big miners spook Abbott

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Original article by Phillip Coorey, Julie-anne Sprague, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 20-May-15

Fortescue Metals Group chairman Andrew Forrest says the Australian Government should proceed with a parliamentary inquiry into the iron ore industry. He notes that lower prices for the steel input affects government revenue, and he says the Government should not yield to pressure from BHP Billiton and Rio Tinto. The two big miners have criticised proposals for a federal inquiry, while Prime Minister Tony Abbott has moderated his position on the issue, after previously supporting such an inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Hockey in iron ore inquiry talks

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Original article by John Kerin, Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 15-May-15

Independent Senator Nick Xenophon wants a bipartisan parliamentary committee to hold an inquiry into iron ore pricing. There is speculation that any such inquiry could be chaired by Liberal MP Angus Taylor, who has worked as a consultant in the sector. Minerals Council of Australia CEO Brendan Pearson rejects claims by Andrew Forrest that BHP Billiton and Rio Tinto are ramping up production with a view to forcing smaller producers out of the iron ore market, and says there is no need for an inquiry.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY

Chaney tells Senate to OK budget

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Original article by Sue Mitchell, Tim Binsted
The Australian Financial Review – Page: 1 & 6 : 12-May-15

Incoming Wesfarmers chairman Michael Chaney says the Australian Government needs to be more proactive in informing the public about the need to reduce spending in the May 2015 Budget. He has also stressed the need for bipartisan support for Budget measures in the Senate, and says consumer confidence, employment and the economy will be negatively affected if the Budget is rejected by the upper house. Chaney will succeed Bob Every as Wesfarmers chairman in November.

CORPORATES
WESFARMERS LIMITED – ASX WES, AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, INCITEC PIVOT LIMITED – ASX IPL

Wesfarmers criticises ‘effects test’

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Original article by Julie-Anne Sprague
The Australian Financial Review – Page: 10 : 2-Apr-15

The final report of the Harper review of competition law has recommended strengthening existing laws on the misuse of market power. However, retail giants Woolworths and Wesfarmers do not support the introduction of a so-called "effects test", and Wesfarmers CEO Richard Goyder believes that it may in fact adversely affect consumers. An effects test has the support of National Farmers’ Federation CEO Simon Talbot

CORPORATES
WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, NATIONAL FARMERS’ FEDERATION LIMITED, AUSTRALIAN LABOR PARTY, COLES GROUP LIMITED

Stamp duty ‘unfair and inefficient’

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Original article by Rebecca Thistleton
The Australian Financial Review – Page: 47 : 2-Apr-15

Property Council of Australia CEO Ken Morrison has called for government action on the issue of stamp duty, describing it as an inefficient and volatile tax. He argues that the best option for replacing stamp duty would be to increase the goods and services tax and widen its scope. He has also suggested the option of a broad-based land tax, of the type that is being introduced in the Australian Capital Territory to replace stamp duty

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN CAPITAL TERRITORY. DEPT OF THE CHIEF MINISTER

Dividend credit debate splits business, investors

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Original article by Vesna Poljak, Shaun Drummond, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 31-Mar-15

Changes to the dividend imputation system are among the reforms canvassed in the Australian Government’s tax discussion paper, which was released in late March 2015. Wilson Asset Management chairman Geoff Wilson says scrapping dividend imputation credits may result in a sharp fall in yields for investors, while Fidelity fund manager Paul Taylor warns that it would result in poor decisions on the allocation of capital. However, some observers are in favour of reviewing dividend imputation

CORPORATES
WILSON ASSET MANAGEMENT, FIDELITY INVESTMENTS AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, CORPORATE TAX ASSOCIATION, COCHLEAR LIMITED – ASX COH, GROUP OF 100, BUSINESS COALITION FOR TAX REFORM, WOOLWORTHS LIMITED – ASX WOW, WAVESTONE CAPITAL PTY LTD, CARDNO LIMITED – ASX CDD, AMP LIMITED – ASX AMP

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

Turnbull swings back at Murdoch

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Original article by Dominic White, Jared Lynch
The Australian Financial Review – Page: 1 & 6 : 17-Mar-15

Communications Minister Malcolm Turnbull insists that Australians have the right to watch major sporting events on free-to-air TV. His declaration, made on 16 March 2015, was not well received by media magnate Rupert Murdoch, who wrote on Twitter that Turnbull was motivated by the desire to protect the interests of his "buddies" at Nine Entertainment Company. Turnbull’s most important recommendation is the abolition of the "reach rule", which prevents metropolitan TV broadcasters from merging with regional TV stations

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEWS CORPORATION – ASX NWS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN FOOTBALL LEAGUE, FOXTEL MANAGEMENT PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, TWITTER INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, FAIRFAX MEDIA LIMITED – ASX FXJ, FREE TV AUSTRALIA LIMITED, MINTER ELLISON, SEVEN WEST MEDIA LIMITED – ASX SWM

Turnbull risks wrath of moguls

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Original article by Dominic White, Jared Lynch
The Australian Financial Review – Page: 1 & 8 : 16-Mar-15

Southern Cross Media Group CEO Rhys Holleran and Fairfax Media CEO Greg Hywood are among the industry executives who support cross-media ownership reforms proposed by Communications Minister Malcolm Turnbull. These including abolishing the reach rule and the two-out-of-three rule. However, Turnbull’s proposal to retain the anti-siphoning list for sports broadcasts has attracted criticism from Foxtel CEO Richard Freudenstein and News Corp Australia CEO Julian Clarke

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIA. DEPT OF COMMUNICATIONS, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, WIN CORPORATION PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, GOOGLE INCORPORATED, NETFLIX INCORPORATED, TELSTRA CORPORATION LIMITED – ASX TLS, LIBERAL PARTY OF AUSTRALIA, PRIME MEDIA GROUP LIMITED – ASX PRT, DISCOVERY COMMUNICATIONS INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS