VIRUS DISEASES – AUSTRALIA

Two-year hangover from Covid

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Original article by Patrick Commins, Simon Benson
The Australian – Page: 1 & 2 : 12-May-20

KPMG has warned that the Australian economy will not recover its losses from the coronavirus pandemic until the September 2021 quarter. The firm’s research suggests that industries such as healthcare, public administration and civil engineering will have fully rebounded by the end of 2020, but the hospitality, accommodation, and retailing and sectors will not recover until March 2022. KPMG’s forecasts are based on expectations that the easing of lockdown restrictions will not result in any major virus outbreaks.

CORPORATES
KPMG AUSTRALIA PTY LTD

‘Australians know there is no money tree’: Treasurer

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 12-May-20

Treasurer Josh Frydenberg will use his economic statement on 12 May to stress that there must be a limit to the federal government’s stimulus and assistance schemes, and they must eventually be wound back. Treasury has estimated that the government’s three-stage strategy to re-open the economy by July will boost GDP by $9.4bn a month and generate 850,000 jobs. However, Frydenberg will emphasise that this is dependent on Australians continuing to observe social distancing and hygiene measures.

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AUSTRALIA. DEPT OF THE TREASURY

Investors should brace for another sharemarket sell-off, warn analysts

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Original article by Euan Black
The New Daily – Page: Online : 12-May-20

The S&P/ASX200 has gained more than 20 per cent since 23 March, rebounding from a major sell-off in response to the coronavirus pandemic. Glenn Leese of TradingView cautions that the local bourse may retreat again; he notes that sharemarkets often rally after a big fall, only to incur an even larger slump. He adds that sharemarket crashes and corrections normally occur in a series of three waves, and the local market is currently experiencing its second wave.

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STANDARD AND POOR’S ASX 200 INDEX, TRADINGVIEW

Coronavirus prompts regional migration trend as people seek simpler life

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Original article by Hannah Ross
The New Daily – Page: Online : 11-May-20

Real Estate Institute of New South Wales president Leanne Pilkington expects the COVID-19 pandemic will result in increased demand for rural and regional properties. Pilkington says the virus has made people realise how easy it is work from home, and that they do not need to live in big cities any more for their work. Regional and urban planner Bette O’Brien says regional economies will get the biggest benefit from a post-pandemic migration if people from all age groups relocate from urban areas.

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THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES

Depression a $5bn hit to productivity

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Original article by Simon Benson
The Australian – Page: 2 : 11-May-20

Sydney University’s Brain & Mind Centre has carried out modelling on the national wealth impacts of COVID-19. The Centre’s modelling indicates up to $5 billion in productivity could be lost as a result of an impending mental health crisis linked to mass unemployment. Centre director Ian Hickie says Australia’s mental ‘wealth’ was four per cent of GDP prior to the COVID-19 outbreak, and that Australia faces its biggest loss of that national wealth since the Great Depression if effective action is not taken as soon as possible.

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UNIVERSITY OF SYDNEY. BRAIN AND MIND RESEARCH INSTITUTE

Recovery rapid but jobs must be saved

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Original article by Simon Benson
The Australian – Page: 5 : 11-May-20

A new report from Deloitte Access Economics forecasts that the coronavirus pandemic will reduce national income by 10 per cent, which equates to nearly $200bn. The firm also expects income tax revenue to fall by $14bn in 2020 and $37bn in 2021, and warns that the unemployment rate may not return to five per cent until 2024. Deloitte also expects the Australian economy to recover from the pandemic more quickly than other countries. Treasurer Josh Frydenberg will release an economic statement on the coronavirus on 12 May.

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DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Early super releases pass the $10b mark

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Original article by Joanna Mather, Tom McIlroy, Michael Roddan
The Australian Financial Review – Page: 12 : 8-May-20

The federal government has advised that 1.2 million people have now applied to withdraw a total of $10.2bn from their superannuation fund via its early access scheme. Treasury had forecast that about $27bn in total will be withdrawn by people who have experienced financial hardship due to the pandemic. Meanwhile, the Australian Federal Police have executed five search warrants as part of an investigation into allegations that fraudsters are taking advantage of the scheme. Tax Commissioner Chris Jordan has told a Senate inquiry that about $120,000 has been stolen from super funds by fraudsters.

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AUSTRALIAN TAXATION OFFICE, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. DEPT OF THE TREASURY

Slow crawl out of Covid hole

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Original article by Simon Benson, Greg Brown
The Australian – Page: 1 & 5 : 8-May-20

The national cabinet meeting on 8 May will decide on a timeframe for relaxing the coronavirus lockdown. The restrictions are expected to be progressively eased over the next two months. Australian Chamber of Commerce & Industry CEO James Pearson has called for restrictions to be lifted at the same time across all states and territories, arguing that maintaining ‘artificial barriers’ between jurisdictions will merely increase costs for businesses and make it harder for them to retain jobs. However, some states have signalled that they will follow their own timetable for easing restrictions.

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AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Energy key to recovery, says Rio

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 8-May-20

Rio Tinto CEO Jean-Sebastien Jacques has told the resources group’s Australian annual meeting that its local aluminium assets are "very well run" and high power costs is their main problem. He emphasised the need for a "viable and sustainable solution" to this problem; he added that high energy prices will also be a key issue for the federal government in restarting the domestic economy in the wake of the coronavirus pandemic. Jacques also said it now appears to be ‘business as usual’ in China, which is Australia’s key iron ore export market.

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RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD

Employers want power over app

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Original article by Ewin Hannan, Stephen Lunn
The Australian – Page: 5 : 7-May-20

The federal government has advised that its CovidSafe app has now been downloaded 5.1 million times. Meanwhile, the rights of employees with regard to the app is under scrutiny. Stephen Cartwright, the CEO of the NSW Business Chamber, says employers should have a legal right to require staff to download the app as a condition of returning to work when lockdown restrictions are eased. ACTU secretary Sally McManus contends that employers should not have the power to force workers to download the app.

CORPORATES
NSW BUSINESS CHAMBER LIMITED, ACTU