GOVERNMENT SPENDING POLICY – AUSTRALIA

‘Spending cuts must fund tax relief’

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Original article by David Crowe
The Australian – Page: 2 : 1-Mar-16

Federal Treasurer Scott Morrison has told a meeting of Coalition MPs of the need to reduce income taxes over the long-term, stressing that this must be achieved via spending cuts in the Budget. Meanwhile, backbenchers expressed concern about proposed changes to the negative gearing regime for property investors, with one MP warning that any such reforms will be rejected by the party room. Morrison also said Prime Minister Malcolm Turnbull is fully prepared to seek a double-dissolution election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN LABOR PARTY

Spending spree hits tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Feb-16

Treasurer Scott Morrison says that fiscal prudence will only allow for "modest" income tax cuts in the May 2016 Budget. The tax-free threshold of $A18,200 is unlikely to be raised. Only those earning more than $A80,000 a year could count on some tax relief.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Ministers told: stop spending

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Original article by Dennis Shanahan
The Australian – Page: 1 & 4 : 17-Feb-16

Treasurer Scott Morrison will use a National Press Club speech on 17 February 2016 to stress the need to ensure that government spending does not exceed revenue. He will argue that increased taxation should not be used to lift revenue above expenditure, and caution against justifying new spending measures by offsetting them against savings achieved elsewhere. Meanwhile, Prime Minister Malcolm Turnbull has officially ruled out an increase in the GST but says action must be taken on the issue of income tax "bracket creep".

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Budget deficit blown to $38b

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 14-Dec-15

The Australian Government’s Mid-Year Economic and Fiscal Outlook will include a significant reduction in Budget forecasts for the price of iron ore in 2015-16. The downturn in the price of the steel input will contribute to the deficit blowing out to around $A38bn. Meanwhile, government spending will rise to 26.2 per cent of GDP in 2015-16, compared with expectations of just 25.9 per cent in the May 2015 Budget. The Government is also tipped to significantly reduce its projections for longer-term economic growth.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE

Quantum computing could be worth billions to Australia

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Original article by Tim Dodd
The Australian Financial Review – Page: 8 : 11-Dec-15

Prime Minister Malcolm Turnbull wants technology to play a bigger role in the Australian economy. He told a Knowledge Society lunch in Sydney on 10 December 2015 that innovative computing technology is particularly important. The Government has provided $A26 million for research on silicon-based quantum computing at the University of New South Wales. Telstra and the Commonwealth Bank gave $A10 million each in additional funding for the project.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, UNIVERSITY OF NEW SOUTH WALES, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Turnbull rejects ‘slash and burn’ approach to spending

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Original article by David Uren
The Australian – Page: 2 : 26-Nov-15

The Australian Government does not intend to include deep cuts in spending in its December 2015 Budget update. Prime Minister Malcolm Turnbull said on 25 November that spending cuts must not compromise economic growth. Westpac chief economist Bill Evans does not believe that Australia’s "AAA" credit rating is under threat.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Hockey reveals $3b budget swansong

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 18-Sep-15

The Australian Government will release the final Budget figures for 2014-15 on 21 September 2015, but Treasury Joe Hockey has revealed that government spending for the fiscal year was around $A3bn lower than expected. Hockey has also told Parliament that net government debt for 2014-15 was $11.5 billion below expectations at $A238bn. The Government is set to post a Budget deficit for 2014-15 of about $A38bn. Hockey is expected to be replaced as Treasurer following the leadership change.

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

51pc top tax rate ‘is fairer’ than GST rise

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 21-Aug-15

State and federal treasurers will discuss fiscal issues at a meeting in Canberra on 21 August 2015. The Victorian Government will propose at the meeting to raise extra funds for public health through an increase in the Medicare levy by two percentage points. The federal Government wants to raise the goods and services tax (GST) rate by five per cent and reduce personal and corporate taxes at the same time. New South Wales and South Australia favour raising the GST rate from 10 per cent to 15 per cent and use the extra revenue on public health.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA

Fight builds over $3b GST compo

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 22-Jul-15

The New South Wales Government has proposed lifting the GST rate to 15 per cent, with the extra revenue to be used to finance public health services. Its modelling suggests that annual GST revenue would increase by $A36bn by 2020 with the higher tax rate. Meanwhile, the cost of public health funding is expected to top $A20bn by 2020. When the need to compensate households for the increased GST is taken into account, it is estimated that a further $A2bn to $A3bn in health funding would be needed in addition to the extra GST revenue.

CORPORATES
NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. TREASURY, LIBERAL PARTY OF SOUTH AUSTRALIA, AUSTRALIAN LABOR PARTY

Legal aid cuts risk injustices: UK judge

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Original article by Katie Walsh
The Australian Financial Review – Page: 33 : 19-Jun-15

Justice Nicholas Mostyn of the High Court of England & Wales has expressed concern about reduced government funding for legal aid in Australia and the UK. He says the funding cuts will threaten both the rule of law and the principle of equality before the law. Meanwhile, the Productivity Commission has urged governments at state and federal level to boost legal aid funding by $A200m.

CORPORATES
HIGH COURT OF ENGLAND AND WALES, AUSTRALIA. PRODUCTIVITY COMMISSION, LAW COUNCIL OF AUSTRALIA, NATIONAL PRO BONO RESOURCE CENTRE, THE LAW SOCIETY OF NEW SOUTH WALES, SUPREME COURT OF NEW SOUTH WALES, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, FAMILY COURT OF AUSTRALIA, PRICEWATERHOUSECOOPERS, NATIONAL LEGAL AID