GOVERNMENT SPENDING POLICY – AUSTRALIA

Forecast tax take out by $30bn

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Original article by David Uren
The Australian – Page: 2 : 13-Jan-17

The Parliamentary Budget Office has released its review of the Australian Government’s mid-year budget update. It shows that the forecast for revenue from personal income tax was $A21.1bn lower than in the May 2016 Budget, while company tax revenue was scaled back by $A6.7bn. Meanwhile, the budget update included savings of some $A10bn due to a reduction in the forecast cost of age pensions, carers’ payments and childcare subsidies. The forecasts for spending on health and education were largely unchanged from the Budget.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF HUMAN SERVICES. CENTRELINK

Smelter’s future hanging on power supply deal

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Original article by Pia Akerman, Tessa Akerman
The Australian – Page: 2 : 22-Dec-16

The Federal and Victorian environment ministers, Greg Hunt and Wade Noonan, have held talks with Alcoa CEO Roy Harvey in New York. Harvey declined to make a commitment regarding the future of the Portland aluminium smelter, despite being offered some $A230m worth of federal and state financial assistance to keep the plant open. He said the smelter’s fate depends on the outcome of negotiations with AGL Energy regarding a new power supply agreement.

CORPORATES
ALCOA INCORPORATED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. CLEAN ENERGY FINANCE CORPORATION, AUSTRALIAN GREENS, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, KEPPEL PRINCE ENGINEERING PTY LTD

Blocked $13.2bn in savings to secure AAA: Morrison

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Original article by David Uren, Rosie Lewis
The Australian – Page: 1 & 2 : 21-Dec-16

Treasurer Scott Morrison argues that delivering on savings measures that have been blocked by the Senate would enable the Federal Government to achieve a modest Budget surplus in 2020-21. He has ruled any budget cuts in addition to those that have already been put to Parliament and blocked. Many of these measures were announced in the Coalition’s first Budget in 2014, and it still appears to be unlikely that some will be passed by the upper house.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, AUSTRALIAN GREENS, LIBERAL DEMOCRATIC PARTY, ONE NATION PARTY, S&P GLOBAL RATINGS

Government warned about risky NBN loan

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Original article by Primrose Riordan
The Australian Financial Review – Page: 7 : 15-Dec-16

The Parliamentary Budget Office estimates that the National Broadband Network will have an $A8.8 billion negative impact on Australia’s net worth. The PBO also warns in a report released on 14 December 2016 that NBN CO could experience difficulties with raising enough capital to pay back a loan of $A19.5 billion from the Federal Government in November. Finance Minister Mathias Cormann says the PBO’s doubts are unwarranted.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, NBN CO LIMITED

Labor blow to economy after GFC

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 9-Dec-16

Economist Tony Makin has concluded that the $A100bn fiscal stimulus package of former prime minister Kevin Rudd was in fact detrimental to the economy. Makin has reviewed the stimulus program on behalf of the Treasury, and noted that apart from wasting taxpayers’ funds on unnecessary expenditure, it hurt the local manufacturing industry. Makin also refutes suggestions that fiscal stimulus helped to protect the domestic economy from the full impact of the global financial crisis, arguing that factors such as a falling Australian dollar, low interest rates and demand for commodities played a greater role.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, GRIFFITH UNIVERSITY, AUSTRALIAN LABOR PARTY

Parties split over Adani coal loan

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Original article by Phillip Coorey, Mark Ludlow
The Australian Financial Review – Page: 1 & 2 : 6-Dec-16

The Carmichael coal and rail project had received initial approval from the Queensland and Federal Governments, but the funding for the project has not yet been arranged. Queensland Premier Annastacia Palaszczuk has requested the Federal Government to provide Adani with a loan of up to $A1 billion from the Northern Australia Infrastructure Fund. The Australian Labor Party says the private project should not be subsidised with public funds.

CORPORATES
ADANI MINING PTY LTD, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. DEPT OF MINES AND ENERGY

OECD urges interest rate hikes in 2017

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 29-Nov-16

The OECD states in its latest global economic outlook that the Reserve Bank of Australia is likely to begin increasing official interest rates in late 2017. It also argues that the prospect of rate rises in the US will allow the RBA to act without any concern about putting upward pressure on the Australian dollar. Meanwhile, the OECD forecasts that Australia’s economic growth will rise toward three per cent in 2018, while it concludes that there is still scope for the Federal Government to increase spending on infrastructure projects.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Natural disasters a threat to billions of dollars of GDP

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Original article by Sally Patten
The Australian Financial Review – Page: 27 : 8-Nov-16

The Federal Government has been urged to spend more money on mitigating the risks associated with natural disasters. SGS Economics & Planning and Insurance Australia Group estimate that 11 per cent of national GDP is at risk of being affected by bushfires, while cyclones pose a threat to 20 per cent of GDP. Disaster relief dominates in government spending on natural disasters, while only three per cent is spent on mitigation.

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SGS ECONOMICS AND PLANNING PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION

ABS threat to axe IR dispute data

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Original article by David Uren
The Australian – Page: 3 : 14-Oct-16

The Australian Bureau of Statistics (ABS) may be unable to collect information on industrial disputes because of budget constraints. Chief statistician David Kalisch said other services that are vulnerable to cuts include retail trade, housing and lending finance reports. Their monthly frequency is under threat. The ABS could also reduce the number of reports on Australia’s global trade.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Taxpayer funds hold up economy, families ease back

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Original article by David Uren
The Australian – Page: 1 & 2 : 8-Sep-16

The latest national accounts data shows that the Australian economic expanded by 3.3 per cent in the year to June 2016. It is now 25 years since the last recession in Australia, and Prime Minister Malcolm Turnbull has attributed the almost unprecedented period of economic growth to factors such as the nation’s commitment to free trade and economic reform. However, growth in household spending slowed to just 0.4 per cent in the June quarter, while growth in household incomes is also subdued. A sharp rise in government spending contributed to GDP growth in 2015-16.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, EAST ASIA SUMMIT