Deficit repair slips even with profit surge: Access

Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 5 : 1-May-17

Chris Richardson of Deloitte Access Economics is predicting a 2016-17 federal Budget deficit of more than $A38.3 billion, which is $A1.8 billion worse than predicted in the Government’s mid-year forecast. Richardson says that while a rise in company profits will eventually result in improved corporate tax collection, poor wages and jobs growth means that there will not be a comparable rise in personal tax collection. He forecasts that tax revenue will grow by 6.2 per cent in real terms in 2017-18.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA

Coal, iron ore budget windfall

Original article by Matt Chambers
The Australian – Page: 19 & 32 : 3-Nov-16

The rally in the price of iron ore, coking coal and thermal coal is expected to boost the 2016-17 revenue of the Federal Government and mining states. It is estimated that tax revenue and mining royalties could be around $A12bn higher than the Federal Government and its counterparts in Western Australia, New South Wales and Queensland had forecast. However, this will depend on whether the prices of Australia’s key export commodities remain at around current levels. Macquarie Group expects coal prices to eventually fall, but stresses that the timing of this will depend on Chinese Government policy.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, HSBC AUSTRALIA HOLDINGS PTY LTD, STANDARD AND POOR’S CORPORATION, DEUTSCHE BANK AG, RESERVE BANK OF AUSTRALIA, GLENCORE PLC

Tax cut gain ‘twice cost to the budget’

Original article by David Crowe
The Australian – Page: 1 & 6 : 8-Jun-16

Research by Chris Murphy of Independent Economics has concluded that the Australian Government’s proposal to progressively reduce the company tax rate will have significant economic benefits. Murphy has estimated that the "consumer benefit" from the tax cuts will be around $A2.39 for every $A1.00 in forgone revenue. Murphy has also rejected suggestions that the tax cuts will boost the after-tax profits of offshore investors.

CORPORATES
INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN LABOR PARTY, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED, AUSTRALIAN GREENS, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED)

Company levy ‘just 4.3pc of total take’

Original article by Annabel Hepworth
The Australian – Page: 6 : 1-Jun-16

Analysis by Deloitte Access Economics suggests that the Australian Government will collect some $A1.11trn in corporate tax revenue between 2016-17 and 2026-27. It is estimated that the Government’s proposed company tax cuts will account for no more than 4.3 per cent of this revenue, and just 0.8 per cent of the Government’s overall revenue during this period. Minerals Council of Australia CEO Brendan Pearson says the Deloitte figures demonstrate that the proposed tax cuts are justified.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MMG LIMITED – ASX MMG

Iron ore blows hole in budget

Original article by David Uren
The Australian – Page: 6 : 11-May-16

Revenue forecasts in the Australian Government’s May 2016 Budget are based on expectations that the iron ore price will average $US55 over the next two years. The price of the steel input is currently trading at around this level, but futures market quotes in Singapore suggest that it could fall to about $US50. Meanwhile, Justin Smirk of Westpac warns that the iron ore price could potentially fall below $US40, before stabilising at about $US42.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Publishers unite to spread the good word

Original article by Darren Davidson
The Australian – Page: 19 & 22 : 11-May-16

A new report shows that the print and digital advertising revenue of Australia’s major news publishers fell by a lower-than-expected 6.7 per cent in 2015, to $A2.4bn. The News Media Index report outlines the advertising revenue of News Corp Australia, Fairfax Media, West Australian News­papers and APN News & Media, which account for around 90 per cent of the sector. Traditional media groups have been able to offset a decline in ad revenue with growth in digital subscriptions.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, WEST AUSTRALIAN NEWSPAPER HOLDINGS LIMITED, APN NEWS AND MEDIA LIMITED – ASX APN, SMI MEDIA INCORPORATED, THE NEWSPAPER WORKS LIMITED, NEWSMEDIAWORKS, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

‘Fairfax news business can survive’

Original article by Max Mason
The Australian Financial Review – Page: 18 : 11-May-16

Fairfax Media CEO Greg Hywood has stressed that the group is still primarily a media company rather than a digital real estate business. He is also confident that Fairfax’s news operations would be able to survive without the revenue contribution of the Domain property division. Fairfax’s revenue from its publishing operations has fallen by six per cent so far in the second half of 2015-16, while Domain’s revenue has grown by nine per cent.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, THE NEWSPAPER WORKS LIMITED, NEWSMEDIAWORKS, SMI MEDIA INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN WEST MEDIA LIMITED – ASX SWM, APN NEWS AND MEDIA LIMITED – ASX APN, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Doubts over iron ore boost to budget

Original article by David Uren
The Australian – Page: 4 : 14-Apr-16

The Treasury has estimated that each $US10 rise or fall in the iron ore price has a $A6.5bn impact on government revenue over two years. The spot price of iron ore is trading at close to $US60/per tonne. The Budget bottom-line would be bolstered by around $A14.3bn over two years if the recent price gains are sustained. Justin Smirk of Westpac warns this is not certain, noting that global supply will be boosted by new mines, while some mothballed mines may resume production.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC

Advertising revenue predicted to hit $13.5b

Original article by Max Mason
The Australian Financial Review – Page: 12 : 4-Jan-16

ZenithOptimedia forecasts that Australian advertising revenue will rise by three per cent in 2016, to $A13.5bn. Digital advertising revenue is expected to grow by 12.1 per cent to almost $A6bn, while outdoor advertising revenue will increase by 8.9 per cent to $A716 million. However, ZenithOptimedia anticipates 0.6 per cent growth in TV advertising revenue, while a sharp decline in newspaper and magazine advertising revenue is expected.

CORPORATES
ZENITH OPTIMEDIA

Radio toasts advertising renaissance

Original article by Dominic White
The Australian Financial Review – Page: 14 : 10-Mar-15

Data from Deloitte shows that advertising revenue for commercial radio stations in Australia’s five largest capital cities increased by 5.03 per cent during the first half of 2014-15. Australian Radio Network CEO Ciaran Davis attributes the rise to the defection of radio presenters Kyle and Jackie O. Commonwealth Bank media analyst Alice Bennett says the lower cost of radio advertising compared with TV was a key factor

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIAN RADIO NETWORK PTY LTD, KIIS1065, APN NEWS AND MEDIA LIMITED – ASX APN, 2DAY FM AUSTRALIA PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMERCIAL RADIO AUSTRALIA LIMITED, NOVA ENTERTAINMENT PTY LTD, FAIRFAX RADIO NETWORK PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, MACQUARIE RADIO NETWORK LIMITED – ASX MRN, COMMERCIAL ECONOMIC ADVISORY SERVICE OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD