GOVERNMENT SPENDING POLICY – AUSTRALIA

Stimulus creates oversupply of homes

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Original article by Patrick Commins
The Australian – Page: 4 : 25-Aug-21

Tim Toohey of Yarra Capital says the take-up rate of the federal government’s HomeBuilder scheme was more than four times higher than expected. He says that together with state-based incentives, this will result in an oversupply of new housing by 2023. Toohey adds that there is also a good chance that house prices will fall over the next two years. The government received more than 99,000 applications to build a new home via the scheme, as well as some 22,000 applications to undertake renovations on an existing home.

CORPORATES
YARRA CAPITAL PARTNERS PTY LTD

Morrison refuses to say if he saw list of marginal seats to get car park funding

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Original article by Katina Curtis, Shane Wright
The Age – Page: Online : 6-Aug-21

The federal government’s $660 million commuter car park grants program has come under severe criticism from the Auditor-General. Only three of the 47 car parks promised in early 2019 have been built, and the Auditor-General has found that there was no criteria for assessing the merit of projects and that 77 per cent of those that were initially funded were in marginal Coalition seats. The Auditor-General has claimed that a list of "top 20 marginal seats" was used as the basis for deciding which projects to finance. Prime Minister Scott Morrison has refused to say if he saw such a list.

CORPORATES
AUSTRALIA. OFFICE OF THE AUDITOR-GENERAL, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Archives win $67m in urgent funding

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Original article by Troy Bramston
The Australian – Page: 3 : 1-Jul-21

The federal government has approved a $67.7m increase in funding for the National Archives of Australia to preserve and digitise its most at-risk records, including documents, photos, maps and film recordings. This had been recommended by former senior public servant David Tune, although the government will provide the additional funding over four years rather than seven. A group of prominent Australians recently signed an open letter to Prime Minister Scott Morrison urging the government to increase the National Archives’ funding.

CORPORATES
NATIONAL ARCHIVES OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Less than $20m for lockdown payments

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Original article by Patrick Commins
The Australian – Page: 5 : 17-Jun-21

Data from Services Australia shows that 42,784 in Victoria received the federal government’s Temporary COVID Disaster Payment during the second week of the state’s latest lockdown. The temporary scheme, which provides a grant of up $500 for people who lose income due to a lockdown of at least seven days, has cost $19,684,000 since Melbourne entered the second week of the lockdown that ended on 10 June. This is significantly less than Treasurer Josh Frydenberg had forecast when the scheme was announced. Melbourne residents must submit applications for the grant by 2 July.

CORPORATES
AUSTRALIA. SERVICES AUSTRALIA

Refinery rescue will cost $2.35bn

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Original article by Ben Packham
The Australian – Page: 4 : 17-May-21

The federal government’s rescue package for the nation’s oil refineries was designed in consultation with Ampol and Viva Energy. The two companies will receive up to $2bn in direct taxpayer funding over the next decade. The variable payments system means that Ampol and Viva will receive greater taxpayer support during periods when their refineries’ margins are low. The government will also provide $302m for the refineries to shift to higher standards three years ahead of schedule. Australia’s two remaining oil refineries employ more than 1,200 people.

CORPORATES
AMPOL LIMITED – ALD, VIVA ENERGY GROUP LIMITED – ASX VEA

PM’s global tech fix for emissions

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 22-Apr-21

The federal government has committed to spending $566m over eight years on the development of low-emission technologies in partnership with other countries. This follows the government’s previous announcement that it will spend $540m on hydrogen and carbon capture and storage projects. Prime Minister Scott Morrison contends that international collaboration is the most effective way to address the issue of carbon emissions, a point he will emphasise during the upcoming virtual climate change summit that will be hosted by US President Joe Biden.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

PM pushes jobs on road to net zero

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Original article by Geoff Chambers, Perry Williams
The Australian – Page: 1 & 4 : 21-Apr-21

Prime Minister Scott Morrison says the federal government will adopt a ‘technology-first’ approach to reducing carbon emissions. He will reveal plans for the government to invest in four clean hydrogen hubs in regional Australia, as well as carbon capture and storage technology. These initiatives will cost some $540m, while Morrison says they will create 2,500 jobs. Morrison has also committed to ensuring that the government’s climate policies will not penalise industries that have high carbon emissions, such as mining and agriculture.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Aged care tax killed off

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Original article by Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 5-Mar-21

Treasurer Josh Frydenberg has acknowledged that funding for the aged-care sector needs to be increased, but he says that growing the economy is the best way to do this. The final report of the aged-care royal commission has recommended increasing funding for the sector via the tax system; however, Tony Negline from Chartered Accountants Australia and New Zealand says this is not appropriate, given that the bulk of aged-care funding already comes from taxpayers. Negline has proposed options such as requiring nursing home residents to use the equity in their family home and a reduction in the capital gains tax discount.

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO AGED CARE QUALITY AND SAFETY, CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND

National cost of pandemic response to reach $327bn over five years

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Original article by Patrick Commins
The Australian – Page: 4 : 5-Mar-21

The Parliamentary Budget Office estimates that the combined net debt of Australia’s three levels of government will blow out to almost $1.3tn in the five years to 2024. Federal, state and local governments are forecast to collectively spend some $327bn on COVID-19 measures over the five-year period. The independent budget watchdog now expects the national net operating balance across all levels of government in 2020-21 to be a deficit of 11.1 per cent of GDP; it had previously forecast a surplus of 1.7 per cent of GDP for the current financial year.

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AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Don’t cut support too quickly: Judo

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Original article by Joyce Moullakis
The Weekend Australian – Page: 19 & 24 : 9-Jan-21

Judo Bank’s joint CEO Joseph Healy has warned of the potential for a surge in small business insolvencies in the June quarter. Healy notes that insolvencies are currently about 35 per cent lower than comparable periods due to factors such as COVID-19 support measures, and he has cautioned the federal government against phasing out support packages for the small business sector too quickly. Meanwhile, Healy is upbeat about the outlook for the small business-focused ‘challenger’ bank, despite the recent decision of rival Xinja to withdraw from the banking sector.

CORPORATES
JUDO BANK PTY LTD, XINJA BANK LIMITED