GOVERNMENT SPENDING POLICY – AUSTRALIA

PM’s $9.2bn tax cut plan for election

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Original article by Ben Potter, Michael Roddan
The Australian – Page: 1 & 4 : 18-Dec-18

Analysis of the Mid-Year Economic and Fiscal Outlook suggests that the federal government may announce some $9.2bn worth of income tax cuts over four years prior to the 2019 election. The figures for ‘decisions taken but not yet announced’ also suggest that an additional $1.4bn may be set aside for spending that could potentially be directed toward marginal seats. To date, the government has announced policy measures worth around $16bn in total. However, economists have cautioned against committing to expenditure on the basis of revenue gains that may not be sustained.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, DELOITTE ACCESS ECONOMICS PTY LTD

War chest to help schools, hospitals

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Original article by David Uren, Michael Roddan
The Australian – Page: 1 & 4 : 29-Nov-18

Prime Minister Scott Morrison has indicated that an improved Budget position will allow the federal government to increase its investment in essential services. Amongst other things, Morrison has flagged a $37m funding increase for schools over 10 years and an extra $30bn for hospitals over five years. The Budget bottom line has been bolstered by higher revenue, but Martin Whetton of the ANZ Bank says the government may opt to use some of this windfall to finance new spending initiatives in the lead-up to the 2019 election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN LABOR PARTY, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S FINANCIAL SERVICES LLC, AUSTRALIA. DEPT OF THE TREASURY, GROUP OF TWENTY (G-20), FINANCIAL STABILITY BOARD

University outrage at research cash cut

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Original article by Michael Koziol
The Age – Page: 1 : 13-Nov-18

Australia’s leading universities have criticised the federal government’s plans to redirect $134m from the Research Support Program to provide increased funding for regional universities. University of Sydney vice-chancellor Michael Spence says universities will have to reduce their research activities while many students will miss out places at the nation’s top universities. Monash University’s vice-chancellor Margaret Gardner has described the funding cuts as "unnecessary" and "reckless".

CORPORATES
UNIVERSITY OF SYDNEY, MONASH UNIVERSITY, THE GROUP OF EIGHT LIMITED, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. DEPT OF EDUCATION AND TRAINING, JAMES COOK UNIVERSITY, UNIVERSITY OF THE SUNSHINE COAST, CENTRAL QUEENSLAND UNIVERSITY

Coalition picks spend over surplus

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 25-Sep-18

The federal government will release the final Budget figures for 2017-18 on 25 September, which are expected to show that the deficit for the financial year was around $10bn. The government is set to retain its target date of 2019-20 for a return to a surplus, and sources have indicated that an earlier return to surplus is possible but unlikely. The government has announced additional expenditure of $3.8bn over four years since handing down the May 2018 Budget, and around $20bn over the next decade.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Schools row ends with $4.5bn deal

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 21-Sep-18

The federal government has agreed to increase taxpayer funding for Catholic and independent schools by more than $4.5bn, after funding was reduced under the "Gonski 2.0" school funding reforms. Catholic schools will receive a $4.3bn increase in funding over 10 years, while independent schools will receive an additional $259m. Stephen Elder, the executive director of the Catholic Education Commission of Victoria, says the funding cuts under the Gonski 2.0 reforms would have forced Catholic schools to close or significantly increase their fees.

CORPORATES
CATHOLIC EDUCATION COMMISSION OF VICTORIA LIMITED, AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, INDEPENDENT SCHOOLS COUNCIL OF AUSTRALIA

Lawyers’ bills soar under Coalition

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Original article by Nicola Berkovic
The Australian – Page: 7 : 28-Jun-18

New figures show that the outsourcing of legal work to the private sector has significantly increased the federal government’s legal costs since the Coalition took office in 2013. Government expenditure on legal services topped $A825m in 2016-17, compared with $A689m in 2013-14. The proportion of legal work undertaken by in-house lawyers has fallen from 54 per cent to 49 per cent over the same period. Attorney-General Christian Porter has indicated that action will be taken to rein in legal costs.

CORPORATES
AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIAN GOVERNMENT SOLICITOR, CLAYTON UTZ

$1 trillion debt bomb buried in budget papers

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Original article by Adam Creighton
The Australian – Page: 1 & 6 : 21-Jun-18

Analysis of budget documents shows that the net financial liabilities of Australia’s federal, state and territory governments will top $A944bn in June 2021, which is equivalent to about $A36,000 per person. Infrastructure projects will be a major contributor to the debt blowout, with New South Wales and Victoria unveiling plans to ramp up spending on infrastructure over the next four years. Meanwhile, credit ratings agency Moody’s has expressed concern about the NSW government’s increased debt in its 2018 Budget, warning that it could affect the state’s credit profile.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, QUEENSLAND. TREASURY

Aunty coy about how budget affects news

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Original article by Dana McCauley
The Australian – Page: 2 : 24-May-18

The ABC’s CFO Louise Higgins has warned that the Federal Government’s looming funding freeze will force the public broadcaster to decide which services it continues to provide. The three-year funding freeze announced in the May 2018 Budgets takes effect in mid-2019, and Higgins says the ABC will negotiate with the government in the interim. Meanwhile, SBS CEO Michael Ebeid says there is no scope for further joint cost-saving initiatives by the public broadcasters.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS

States suffer as PM’s pet projects prosper

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Original article by David Uren
The Australian – Page: 2 : 22-May-18

Federal grants to the states for infrastructure projects have declined to their lowest point since 2013-14. Prime Minister Malcolm Turnbull has stated that the federal government should not be seen as an ATM for the states and territories on infrastructure, with his government preferring to put money in projects in which it has direct equity, such as Western Sydney Airport. Adrian Dwyer, the CEO of Infrastructure Partnerships Australia, contends that there is a considerable difference between direct and equity funding. He says more infrastructure spending is needed to address congestion in Australia’s cities.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT

Funding cut setback for enforcing wage laws

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Original article by Anna Patty
The Sydney Morning Herald – Page: 13 : 10-May-18

The May 2018 Budget has allocated $A110.009m in funding to the Fair Work Ombudsman in 2018-19, down from $A110.46m in 2017-18. However, the Registered Organisations Commission’s funding has been increased by $A8.1m. Labor’s workplace relations spokesman Brendan O’Connor has criticised the Federal Government for providing additional funding for the "disgraced" ROC rather than addressing the issue of rampant wage theft. The University of Adelaide’s Professor Andrew Stewart has expressed similar concerns.

CORPORATES
AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, AUSTRALIAN LABOR PARTY, UNIVERSITY OF ADELAIDE, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, UNIVERSITY OF SYDNEY, 7-ELEVEN STORES PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CALTEX AUSTRALIA LIMITED – ASX CTX