STATE GOVERNMENTS – AUSTRALIA

PM stares down states over GST compensation

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 3-Oct-18

Proposed changes to the formula for the distribution of goods and services tax revenue will head the agenda of a meeting of the federal and state treasurers on 3 October. Prime Minister Scott Morrison has given assurances that no state will worse off, but the eastern states are concerned that the GST reforms favour Western Australia and that they will lose more in revenue than the federal government has proposed to offer by way of compensation. Morrison has indicated that he will legislate to make the changes even if the reforms are not supported by the eastern states.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, VICTORIA. DEPT OF TREASURY AND FINANCE

ALP states to support Shorten if NEG revived

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Original article by Joe Kelly
The Australian – Page: 5 : 19-Sep-18

Queensland’s Energy Minister Anthony Lynham and Victorian counterpart Lily D’Ambrosio have indicated that they would back the national energy guarantee if Labor wins the next federal election. Opposition Leader Bill Shorten recently signalled that a Labor government would be open to adopting some aspects of the Coalition’s NEG. Lynham has also criticised the federal government’s lack of action regarding energy policy following its decision to abandon the NEG under new Prime Minister Scott Morrison.

CORPORATES
AUSTRALIAN LABOR PARTY, QUEENSLAND. DEPT OF ENERGY AND WATER SUPPLY, VICTORIA. DEPT OF ENVIRONMENT, LAND, WATER AND PLANNING, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, COUNCIL OF AUSTRALIAN GOVERNMENTS

‘NEG is dead’: States go it alone

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Original article by Mark Ludlow, Ben Potter
The Australian Financial Review – Page: 4 : 30-Aug-18

Uncertainty about the future of the federal government’s national energy guarantee in the wake of the leadership spill has prompted Labor-led state governments to press ahead with their own renewable energy targets. Queensland’s Energy Minister Anthony Lynham says he has not anything from the federal government about the NEG since the leadership change, adding that the state remains committed to its renewable energy target of 50 per cent. The Australian Capital Territory’s Climate Change Minister Shane Rattenbury says it appears that the NEG will not proceed.

CORPORATES
QUEENSLAND. DEPT OF ENERGY AND WATER SUPPLY, AUSTRALIAN CAPITAL TERRITORY. DEPT OF ENVIRONMENT, PLANNING AND SUSTAINABLE DEVELOPMENT, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. ENERGY SECURITY BOARD

$1 trillion debt bomb buried in budget papers

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Original article by Adam Creighton
The Australian – Page: 1 & 6 : 21-Jun-18

Analysis of budget documents shows that the net financial liabilities of Australia’s federal, state and territory governments will top $A944bn in June 2021, which is equivalent to about $A36,000 per person. Infrastructure projects will be a major contributor to the debt blowout, with New South Wales and Victoria unveiling plans to ramp up spending on infrastructure over the next four years. Meanwhile, credit ratings agency Moody’s has expressed concern about the NSW government’s increased debt in its 2018 Budget, warning that it could affect the state’s credit profile.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, QUEENSLAND. TREASURY

WA tops debt list as states binge

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Original article by Richard Gluyas
The Australian – Page: 4 : 23-Feb-18

Standard & Poor’s forecasts that the combined debt of Australia’s state and territory governments will blow out by 5.1 per cent in 2018, to $A257.8bn. They will also refinance or repay some $A45.4bn worth of debt, according to the credit ratings agency. Meanwhile, the Western Australian government’s debt is expected to rise from $A45.8bn to $A56bn in 2019, which would see its debt-to-revenue ratio rise from 102 per cent to 114 per cent. The state has a credit rating of "AA-plus" with a negative outlook.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, WESTERN POWER CORPORATION

Energy prices double in year

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Original article by Samantha Hutchinson, Michael Owen, Andrew White
The Australian – Page: 1 & 6 : 30-Jan-18

New figures show that the average wholesale spot energy price in South Australia has risen to nearly $A170 in January 2018, compared with $A84 during the same period in 2017. The average spot price in Victoria has risen from just $A62 to $A139 over the last 12 months. Energy experts warn that more power blackouts and electricity price hikes can be expected due to the state governments’ focus on renewable energy targets rather than ensuring a reliable baseload energy supply.

CORPORATES
GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIAN POWER PROJECT, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

WA Lib leader issues political suicide GST warning to Turnbull

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Original article by Brad Thompson
The Australian Financial Review – Page: 5 : 12-Jan-18

Western Australia’s Opposition Leader Mike Nahan is generally supportive of the Productivity Commission’s recommendations regarding the distribution of goods and services tax revenue. However, he has suggested that the Australian Capital Territory and the Northern Territory should be directly funded by the Federal Government, and GST revenue should be distributed solely to the states. Nahan also says any attempt by the Federal Government to make changes to the GST cannot succeed without the Australian Labor Party’s support.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER

States to whack back over GST gas threat

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Oct-17

The issue of anti-terrorism measures will be the focus of the Council of Australian Governments meeting on 5 October. However, New South Wales Premier Gladys Berejiklian intends to raise a number of issues, including the Federal Government’s proposal to reduce the share of goods and service tax revenue paid to states that maintain restrictions on gas exploration and production. Meanwhile, Victorian Premier Daniel Andrew continues to advocate the introduction of a domestic gas reserve, arguing that only gas that is surplus to households’ and businesses’ requirements should be exported.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Govt backs GST penalty for gas ban states

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 4-Oct-17

The Productivity Commission’s review of the system for distributing goods and services tax revenue is expected to recommend penalising states that fail to develop their gas reserves. The Commonwealth Grants Commission recently made a similar recommendation. Energy Minister Josh Frydenberg says it does not seem to be in Australia’s long-term interests for states that fail to develop gas reserves to be financially rewarded while states such as Western Australia are penalised.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, SHELL COMPANY OF AUSTRALIA LIMITED

States fear hospital funding clawback

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Original article by Sean Parnell
The Australian – Page: 6 : 4-Aug-17

Victorian Health Minister Jill Hennessy claims that the Federal Government is trying to effectively recoup hundreds of millions of dollars of health funding that has already been spent by the states. Federal Health Minister Greg Hunt has asked the Independent Hospital Pricing Authority to review previous state health spending activity before the Federal Government enters into the next hospital funding arrangement with the states. Hunt says there are some abnormalities in health spending by state Labor governments that are of concern to him.

CORPORATES
VICTORIA. DEPT OF HEALTH AND HUMAN SERVICES, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. INDEPENDENT HOSPITAL PRICING AUTHORITY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, QUEENSLAND HEALTH