GOVERNMENT SPENDING POLICY – AUSTRALIA

Budget risks in pensioner pork

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Original article by John Kehoe
The Australian Financial Review – Page: 3 : 25-Jan-19

Speculation that the federal government may give pensioners and families on low incomes a one-off cash payment prior to the election has prompted suggestions of ‘pork barrelling’. Some observers have likened it to the strategy of former prime minister John Howard ahead of the 2007 election, which he lost. Chris Richardson of Deloitte Access Economics says a low jobless rate and a strong economy means such largesse is not necessary, while Opposition Leader Bill Shorten says the government is now in election mode.

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

PM’s cash splash for oldies

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 9 : 24-Jan-19

Sources within the federal government have indicated that it may offer pre-election sweeteners to age pensioners and families in the form of one-off cash payments. The potential measure is said to be aimed at ensuring that people who will not directly benefit from the government’s income tax cuts package are not disadvantaged. The first stage of the tax package took effect at the start of 2018-19, but Labor has committed to scrapping the second and third stages it wins the 2019 election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Budget surplus on track, says Frydenberg

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Original article by Lucas Baird
The Australian Financial Review – Page: 5 : 23-Jan-19

Treasurer Josh Frydenberg remains confident that the federal government will return the Budget to surplus in 2019-20. This is despite domestic and global headwinds, including the International Monetary Fund’s latest downgrade of its global economic growth forecast. Frydenberg also used a Sydney Institute speech to warn that the domestic economy cannot afford Labor’s proposed $200bn package of tax increases. He added that unlike Labor, the Coalition will increase health, education and infrastructure spending without increasing taxes.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, INTERNATIONAL MONETARY FUND, SYDNEY INSTITUTE, AUSTRALIAN LABOR PARTY

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