GOVERNMENT SPENDING POLICY – AUSTRALIA

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

ABC determined to fight $84m funding cut

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Original article by Max Mason
The Australian Financial Review – Page: 8 : 10-May-18

ABC MD Michelle Guthrie has told the public broadcaster’s staff that a funding freeze in the May 2018 Budget will affect its ability to comply with the requirements of its charter. The ABCs budget will be unchanged at $A3.16bn over the three years from July 2019, effectively reducing its funding by $A83.7m over this period. Guthrie says the ABC’s management will "seek every opportunity" to have the funding cuts scrapped before they take effect. Funding for SBS will be increased by $A14.6m over two years.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIA. DEPT OF THE TREASURY, FOXTEL MANAGEMENT PTY LTD, NEWS CORPORATION – ASX NWS

ABC to feel the pinch with funding freeze

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Original article by Michael Koziol
The Sydney Morning Herald – Page: 6 : 9-May-18

The May 2018 Budget includes a freeze on the ABC’s funding until 2022, amounting to savings of $A83.7 million. Despite the freeze, the public broadcaster will still receive funding of over $A1 billion a year. Some $A50 million of the $A83.7 million saved as a result of the funding freeze will be spent over four years on the commemoration of the 250th anniversary of the landing of Captain James Cook. Unlike the ABC, SBS will not have its funding frozen.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIA. DEPT OF THE TREASURY, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS

Budget to fail debt test

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Original article by Bevan Shields
The Sydney Morning Herald – Page: 1 : 8-May-18

Former federal treasurer Peter Costello says the Coalition government has not done enough to reduce government debt. Costello claims it would require the Budget to be in surplus for 10 years in a row for it to be paid off, and he has urged the government to cut spending by at least $A18 billion to address the debt issue. Costello supports Treasurer Scott Morrison’s goal of setting the government’s overall tax collection rate at 23.9 per cent of GDP, but says it should apply the same target to government spending.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Seniors big winners in budget lift

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Original article by Simon Benson, Rick Morton, David Uren
The Australian – Page: 1 & 6 : 8-May-18

The Federal Government’s May 2018 Budget will feature a range of measures targeted at older Australians. Amongst other things, the government is expected to provide funding for an additional 20,000 people to receive in-home care, while a scheme that enables retirees to remain in the workforce without affecting their pension entitlements is tipped to be expanded. Meanwhile, people on low and middle incomes are expected to receive a tax cut of about $A10 a week.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF SOCIAL SERVICES

Labor plan: spend and tax to bigger surpluses

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 3-May-18

The Australian Labor Party will raise at least $A160bn in additional revenue over 10 years if it wins the next federal election. This would be boosted by $A35bn if Labor revoked company tax cuts that have yet to be legislated. Labor argues that the additional revenue would allow it to achieve a Budget surplus while increasing government spending in sectors such as health and education. Finance Minister Mathias Cormann has warned that Labor’s tax plan will have an adverse impact on jobs and investment.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY

Call for infrastructure boost, without tricks

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Original article by Mark Ludlow
The Australian Financial Review – Page: 4 : 1-May-18

Infrastructure Partnerships Australia CEO Adrian Dwyer has urged the Federal Government to increase its spending on infrastructure in the May 2018 Budget. He argues that infrastructure spending should be increased by $A7.5bn over four years to offset a decline in such expenditure over the last decade. Dwyer has also questioned the policy of funding infrastructure projects via financing vehicles such as the Northern Australia Infrastructure Facility rather than the Budget. The Coalition and Labor both recently announced funding for major infrastructure projects.

CORPORATES
INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

ASIC a cash cow gouging millions in excessive fees

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Original article by Anthony Klan
The Australian – Page: 2 : 24-Apr-18

Data shows that the Australian Securities & Investments Commission generated revenue of $A801.7m in fees during 2016-17, while it issued $A118.5m worth of fines. ASIC received a total of $A341.6m in federal government funding for the financial year, down from $A350m in 2012-13. However, the government has since ended taxpayer funding of ASIC in favour of an industry-funded system. The government had previously announced in 2014 that ASIC’s funding would be reduced by $A120m over four years.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY