STATE GOVERNMENTS – AUSTRALIA

S&P loses patience, warns of state downgrades

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Original article by Michael Read, Jonathan Shapiro
The Australian Financial Review – Page: 3 : 5-Feb-25

A report from S&P Global Ratings has concluded that the expenditure of Australia’s state and territory governments was $212bn higher between 2020 and 2023 than had been forecast in their 2019 budgets. This significantly offset the $146bn in revenue over the same four-year period. S&P forecasts that the combined debt of the states and territories will top $780bn by 2027, and the firm has warned they may face credit ratings downgrades unless action is taken to rein in spending.

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S&P GLOBAL RATINGS

Wages claims put state budgets at risk: S&P

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Original article by Michael Read, James Hall
The Australian Financial Review – Page: 1 & 4 : 14-Jan-25

S&P Global Ratings analyst Martin Foo has warned that demands for big public sector wage rises could more negatively impact on state governments’ budget bottom lines that treasurers had forecast. Foo notes that some recent above-average pay rises in the public sector could have a flow-on effect, with other unions likely to seek to match them. Foo adds that changes to some state governments’ public sector wage caps may also have contributed to higher wage claims. AMP’s chief economist Shane Oliver says state governments have limited ‘wiggle room’ to increase public sector wages.

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S&P GLOBAL RATINGS, AMP LIMITED – ASX AMP

Wages claims put state budgets at risk: S&P

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Original article by Michael Read, James Hall
The Australian Financial Review – Page: 1 & 4 : 14-Jan-25

S&P Global Ratings analyst Martin Foo has warned that demands for big public sector wage rises could more negatively impact on state governments’ budget bottom lines that treasurers had forecast. Foo notes that some recent above-average pay rises in the public sector could have a flow-on effect, with other unions likely to seek to match them. Foo adds that changes to some state governments’ public sector wage caps may also have contributed to higher wage claims. AMP’s chief economist Shane Oliver says state governments have limited ‘wiggle room’ to increase public sector wages.

CORPORATES
S&P GLOBAL RATINGS, AMP LIMITED – ASX AMP

States sign up for new competition agenda to lift wages

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Original article by Shane Wright
The Age – Page: Online : 8-Mar-24

NSW Treasurer Daniel Mookhey has hosted a meeting of federal, state and territory governments that has been as acting as a possible starting point for new competition reforms that will in turn lead to higher wages. Many economists believe that the recent decline in global and Australian productivity is partly due to a lack of competitive pressures, which force companies to look at new ways to lift output or better utilise their staff. One issue that the meeting looked at was the growing use of non-compete and no-poach clauses in workplace contracts or agreements, with recently released research from the Australian Bureau of Statistics finding that 47 per cent of businesses imposed at least one form of restraint clause on their workers.

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AUSTRALIAN BUREAU OF STATISTICS

State and territory leaders to sign joint statement backing Indigenous voice to parliament

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Original article by Paul Karp
The Guardian Australia – Page: Online : 1-Feb-23

The leaders of Australia’s state and territory governments will attend a Council for the Australian Federation meeting on Thursday. They are expected to sign a joint statement expressing support for an Indigenous voice to federal parliament. They have all previously publicly committed to backing the voice. Victorian Premier Daniel Andrews says he will vote ‘yes’ at the upcoming referendum on the voice and has urged everyone to do so. Meanwhile, the South Australian government has committed to legislating an Indigenous voice to state parliament in 2023. The federal Liberal Party has yet to formally announce its position on the voice, while the Greens are expected to formalise their position at a two-strategy meeting on Wednesday and Thursday.

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COUNCIL FOR THE AUSTRALIAN FEDERATION, VICTORIA. DEPT OF PREMIER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS

PM to end money for lockdowns

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Original article by Phillip Coorey, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 29-Sep-21

The federal government’s temporary COVID-19 Disaster Payment will be phased out when the states and territories have achieved the vaccination rates that were agreed upon in the national plan to reopen the economy. The income support payments will be completely withdrawn two weeks after 80 per cent of the eligible population of a given jurisdiction has been fully vaccinated. States and territories that opt to set higher vaccination targets than the national plan will be required to implement their own income support programs. Treasurer Josh Frydenberg says the coronavirus cannot be eliminated, so Australia must learn to live with it.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Berejiklian slams Andrews over hasty border shutdown

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Original article by Stephen Rice
The Australian – Page: 1 & 5 : 11-Jan-21

New South Wales Premier Gladys Berejiklian has urged other states to consult with her government before closing their borders in the future. Victoria’s border with NSW remains closed, and Premier Daniel Andrews has yet to set a firm date for lifting the restrictions. This is despite the fact that NSW recorded just three new locally-acquired COVID-19 cases on 10 January, while just 10 new cases among returned travellers in hotel quarantine were recorded nationwide. There are now 199 active cases in NSW, 45 in Victoria, 21 in the Northern Territory, 20 in Queensland, 15 in South Australia and 15 in Western Australia.

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NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET

Premiers’ $3bn blow to tourism

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Original article by Joe Kelly
The Australian – Page: 1 & 5 : 24-Dec-20

Modelling shows that the tourism sector will be hard hit by moves by state governments to close their borders to travellers from New South Wales during the Christmas holiday period. The modelling undertaken by Stafford Strategy on behalf of the Tourism & Transport Forum shows that Australians are set to spend about $2.6bn between 24 December and 11 January, compared with the annual average of around $5.5bn for the period. Federal Tourism Minister Dan Tehan says state borders should be re-opened as soon as possible to support the domestic tourism industry, while TTF CEO Margy Osmond warns that the sector will need ongoing government support.

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STAFFORD STRATEGY,TOURISM AND TRANSPORT FORUM AUSTRALIA,AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND COMMUNICATIONS

States on $500bn debt binge

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Original article by Adam Creighton
The Australian – Page: 1 & 6 : 2-Dec-20

Centre for Independent Studies research fellow Robert Carling says that rising state government debt means that some states could have their credit ratings downgraded in coming years. Analysis of state governments’ Budget papers show that their combined debt will top $491bn by mid-2024, compared with just $200bn in June 2020. Carling contends that while some of the increase in debt is inevitable, some states are taking on more debt than necessary. Chris Richardson of Deloitte Access Economics in turn says rising debt is better than the alternative of lower debt and an unemployment rate that is higher for longer.

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THE CENTRE FOR INDEPENDENT STUDIES LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD

Have ‘the guts to open’, like NSW

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Original article by Finbar O’Mallon, Jenny Wiggins
The Australian Financial Review – Page: 3 : 5-Nov-20

The New South Wales government will reopen the state’s borders to travellers from Victoria on 23 November. Premier Gladys Berejiklian says it is in the national interest for other states to reopen their borders with NSW, and she has urged them to do so. Victorian Premier Daniel Andrews says the NSW government’s decision is a sign of confidence in his state’s health system. However, Queensland Premier Annastacia Palaszczuk says her state will monitor the situation in Victoria during the next month before considering any move to ease border restrictions.

CORPORATES
NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET