POLITICAL PARTIES – AUSTRALIA – PLATFORMS

Dividend credit refunds distort economic system

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Original article by Michael Roddan
The Australian – Page: 19 & 26 : 24-Jan-19

Professor Kevin Davis from the University of Melbourne has expressed support for Labor’s plan to abolish cash refunds for excess dividend imputation credits. He says that dividend imputation was intended to prevent the double taxation of corporate profits, and providing franking credit refunds for investors who do not pay tax has resulted in a "significant economic distortion". Meanwhile, the University of Sydney’s Andrew Ainsworth says retail investors may be engaging in short-term trading to receive franking credit refunds.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF SYDNEY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, GRATTAN INSTITUTE, RESERVE BANK OF AUSTRALIA

ALP locks in shipping fleet

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Original article by Primrose Riordan
The Australian – Page: 1 & 4 : 24-Jan-19

The Maritime Union of Australia’s national secretary Paddy Crumlin says Labor is likely to pursue coastal shipping reforms if it wins the 2019 federal election. He expects Labor to mandate that cargo ships operating between the nation’s ports must be Australian-flagged, with local crews who are subject to Australian conditions of employment. Minerals Council of Australia CEO Tania Constable says that such restrictions would lead to higher costs for businesses and consumers.

CORPORATES
MARITIME UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, MINERALS COUNCIL OF AUSTRALIA, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, BHP GROUP LIMITED – ASX BHP, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, INTERNATIONAL ENERGY AGENCY

Bowen touts $200b tax hike buffer

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 23-Jan-19

Shadow treasurer Chris Bowen identifies Australia’s high level of household debt and low wages growth as key issues that concern him. Bowen adds that Labor’s proposed $200bn package of tax increases is necessary to provide the nation with a "fiscal buffer" in the event of a global economic downturn. He has also defended Labor’s plan to direct the bulk of tax relief to low- and middle-income earners, arguing that they tend to spend more than people on high incomes. Bowen has also downplayed fears that Labor’s negative gearing reforms would have an adverse effect on residential property values.

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

Argus warns Shorten on silly class war

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Original article by Patrick Durkin
The Australian Financial Review – Page: 4 : 22-Jan-19

Former BHP chairman Don Argus says Labor leader Bill Shorten could divide the nation if he contests the 2019 election on the basis of class warfare. Argus adds that despite Shorten’s rhetoric, the majority of employers and workers recognise the need to work together. Wesfarmers chairman Michael Chaney and AustralianSuper chair Heather Ridout are among the other business leaders who have cautioned Shorten against engaging in populist politics.

CORPORATES
AUSTRALIAN LABOR PARTY, BHP GROUP LIMITED – ASX BHP, WESFARMERS LIMITED – ASX WES, AUSTRALIANSUPER PTY LTD, ASX LIMITED – ASX ASX, SIMS METAL MANAGEMENT LIMITED – ASX SGM, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BLUESCOPE STEEL LIMITED – ASX BSL, THE AUSTRALIAN INDUSTRY GROUP

ALP’s tax reforms will sting its voters

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Original article by Adam Creighton, Michael Roddan
The Australian – Page: 5 : 21-Jan-19

Sixteen per cent of those who voted Labor at the 2016 federal election owned an investment property, according to research by the Australian National University. With Labor planning to make changes to negative gearing if it wins the next election, ANU professor Ian McAllister notes that 16 per cent of Labor voters "equates to a lot of voters". He says the fact that Labor plans to grandfather its changes could reduce the possible impact to its vote. Meanwhile, a study of Australian Taxation Office data indicates that over 200,000 voters in Labor-held seats could be affected by its plans to increase capital gains tax.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY

Trust tax to ‘hit Labor’s backyard’

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Original article by Adam Creighton
The Australian – Page: 2 : 18-Jan-19

Treasurer Josh Frydenberg claims that about 300,000 small businesses with turnover of up to $10 million would be affected by Labor’s proposal to impose a 30 per cent tax on the distributions of family trusts. The Treasury’s analysis of tax office data shows that the Greens-held seat of Melbourne Ports and the Labor seat of Adelaide would be hardest-hit by the policy, although the Coalition holds six of the 10 seats that would be impacted the most. Shadow treasurer Chris Bowen contends that 98 per cent of taxpayers would not be affected by the policy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, BDO AUSTRALIA LIMITED

Shorten rounds on super fund duds

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Original article by Joanna Mather, John Kehoe
The Australian Financial Review – Page: 4 : 17-Jan-19

Federal Opposition Leader Bill Shorten has expressed some support for the Productivity Commission’s proposal to cull underperforming superannuation funds. He says super funds whose returns rank in the bottom quartile deserve to be culled, regardless of whether they are industry or retail funds. Meanwhile, Prime Minister Scott Morrison has not ruled out making the Future Fund a default super fund, but he stresses that doing so is not on the government’s policy agenda at present.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Kelty urges Shorten to stand up to dud funds

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Original article by Eryk Bagshaw
The Age – Page: 3 : 16-Jan-19

Former ACTU secretary Bill Kelty says Opposition leader Bill Shorten must be prepared to take action against underperforming industry superannuation funds if Labor wins the federal election. Kelty has also criticised the Productivity Commission’s proposal for a list of the 10 best-performing super funds, arguing that the focus should be on targeting the 10 biggest underperformers and removing them from the industry. Industry Super Australia chairman Greg Combet also supports a crackdown on chronic underperformers.

CORPORATES
AUSTRALIAN LABOR PARTY, ACTU, AUSTRALIA. PRODUCTIVITY COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. FAIR WORK COMMISSION, MERCER INVESTMENTS PTY LTD, MOTOR TRADES ASSOCIATION OF AUSTRALIA SUPERANNUATION FUND PTY LTD, SUPERRATINGS PTY LTD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Dividends paid early to beat ALP

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Original article by Eli Greenblat
The Australian – Page: 1 & 2 : 16-Jan-19

Jason Steed of Morgan Stanley expects some listed companies to announce share buybacks and special dividends prior to the federal election, in order to avoid Labor’s proposed changes to the franking credits system. Mirrabooka Investments has already advised that its special dividend will be paid immediately rather than on 1 July, with CEO Mark Freeman attributing the move to uncertainty regarding Labor’s policy. Liberal MP Tim Wilson notes that many companies have told a parliamentary committee that they have changed their investment strategy in anticipation of Labor’s policy.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY, MIRRABOOKA INVESTMENTS LIMITED – ASX MIR, LIBERAL PARTY OF AUSTRALIA, CITIGROUP PTY LTD, CALTEX AUSTRALIA LIMITED – ASX CTX, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, RIO TINTO LIMITED – ASX RIO, METCASH LIMITED – ASX MTS, WOOLWORTHS GROUP LIMITED – ASX WOW

ALP’s tax plan hurts workers, says Frydenberg

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Original article by Adam Creighton
The Australian – Page: 4 : 15-Jan-19

Treasurer Josh Frydenberg says data from the Australian Bureau of Statistics shows that low- and middle-income earners would bear the brunt of Labor’s proposed capital gains tax reforms. According to the ABS, some 194,000 middle-income earners had a capital gain in 2016, compared with just 70,635 people whose taxable income exceeded $180,000. The figures also show that middle-income earners made an average capital gains of $9,176, while the average capital gain for people on high incomes was $164,710.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY