VIRUS DISEASES – AUSTRALIA

CBA delays all SME repayments

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Original article by Max Maddison
The Australian – Page: 17 : 24-Apr-20

The Council of Small Business Organisations’ deputy chairman David Gandolfo has welcomed the Commonwealth Bank’s decision to defer loan repayments for many small business customers until the end of June. The loan deferral will automatically apply to small business accounts that have lending limits of less than $5m, although these customers can opt to continue making repayments. Business customers with loans of between $5m and $10m will be able to defer repayments for six months due to the impact of the pandemic.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED

Porter seeks Hawke-style accord with unions to spark a recovery

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Original article by Rosie Lewis, Greg Brown, Olivia Caisley
The Australian – Page: 4 : 23-Apr-20

Council of Small Business Organisations CEO Peter Strong has called for the industrial awards system to be abolished, while Australian Industry Group CEO Innes Willox says awards should be retained but simplified. Industrial Relations Minister Christian Porter has signalled that workplace reform will be on the federal government’s agenda. He hopes to build on recent good relations with ACTU secretary Sally McManus to have constructive discussions with union leaders regarding workplace reforms aimed at creating jobs and boosting wages when the coronavirus abates.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, THE AUSTRALIAN INDUSTRY GROUP, ACTU

Stimulus package a big mistake, says Abbott’s former economist

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Original article by Adam Creighton
The Australian – Page: 6 : 23-Apr-20

The necessity of the federal government’s $194bn coronavirus stimulus package has been questioned by Andrew Stone, the chief economist of former prime minister Tony Abbott. Stone argues that the stimulus package – and the national lockdown – should be progressively wound back, given that the virus outbreak has not been as severe in Australia as had been feared. He has also criticised economists who have signed an open letter cautioning the federal government against easing lockdown restrictions too soon.

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Tax system doesn’t support recovery

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Original article by John Kehoe, Patrick Durkin
The Australian Financial Review – Page: 6 : 23-Apr-20

Former Treasury secretary Ken Henry has backed calls by Reserve Bank of Australia governor Philip Lowe for an overhaul of the tax system when the pandemic is contained. Henry led a review of the tax system in 2010, and he contends that its findings and recommendations are still relevant. Amongst other things, Henry advocates replacing the GST, payroll taxes and some state-based taxes with a new tax on business cash flow. He has also proposed phasing out stamp duties in favour of a land tax system.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Air travel could struggle to take off again

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: 11 : 23-Apr-20

The International Air Transport Association has warned that Australia’s aviation industry could take some time to recover when coronavirus restrictions are eased. The IATA notes that a rebound in business confidence after the number of new infections declined in late February saw domestic air travel in China quickly return to about 45 per cent of its previous level. The IATA’s chief economist Brian Pearce notes that in contrast, Australia’s domestic flights have not yet resumed despite the fact that the nation’s rate of infection has slowed considerably.

CORPORATES
INTERNATIONAL AIR TRANSPORT ASSOCIATION

Panic buying could put GDP in positive territory for March

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Original article by Matthew Cranston, Simon Evans
The Australian Financial Review – Page: 7 : 23-Apr-20

Data from the Australian Bureau of Statistics shows that retail turnover increased by 8.2 per cent in March, driven by panic buying in response to the coronavirus. Sales of canned food, medicinal products and cleaning goods were particularly strong in March, with turnover rising by 50 per cent month-on-month. Josh Williamson of Citigroup warns that retail turnover is likely to fall sharply in April, due to the impact of lockdowns and social distancing rules. David Plank of the ANZ Bank says the sales boost in March could potentially result positive GDP growth for the first quarter of 2020.

CORPORATES
AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS AND SCIENCES, CITIGROUP PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Company tax rate back on table

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 23-Apr-20

Deregulation, tax reform and changes to the industrial relations system are expected to be the federal government’s priorities when the coronavirus pandemic abates. The Coalition is of the view that the economy will need reforms of a similar magnitude to those implemented by the Hawke-Keating Labor government three decades ago. Treasurer Josh Frydenberg notes that Australia’s company tax rate remains high by global standards, although he has ruled out any changes to the GST at present. The government has also signalled its intention to revive the Ensuring Integrity Bill.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Tax reform cure for virus fever

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Original article by Patrick Commins
The Australian – Page: 1 & 6 : 22-Apr-20

Reserve Bank of Australia governor Philip Lowe has warned that the nation’s GDP growth will fall by around six per cent in 2020 due to the coronavirus pandemic. However, he says the economy should begin to recover in September, with GDP growth of 6-7 per cent expected in 2021. Lowe also says the unemployment rate could peak at 10 per cent in coming months, and it is likely to remain above six per cent for several years. Lowe adds that total hours worked in Australia are forecast to fall by 20 per cent in the first half of 2020. Lowe has also used a speech in Sydney to argue that industrial relations and tax reform should be considered in the wake of the pandemic.

CORPORATES
RESERVE BANK OF AUSTRALIA

TV networks brace for potential 30 per cent fall in ad revenues despite rising viewership

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Original article by Rod Myer
The New Daily – Page: Online : 21-Apr-20

The coronavirus lockdown has prompted a spike in ratings for TV news bulletins as Australians seek information on the pandemic. Think TV CEO Kim Portrate says there has been strong growth in audiences for traditional linear TV, broadcast video-on-demand and subscription video-on-demand services. However, TV networks’ revenue is being hit by a sharp fall in bookings from advertisers; Jane Ratcliffe from Standard Media Index estimates that ad revenue could fall by 25-30 per cent in April.

CORPORATES
THINK TV, SMI MEDIA INCORPORATED

Labor launches Senate push to reverse IR changes

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 5 : 21-Apr-20

Shadow industrial relations minister Tony Burke has questioned the need for reforms which reduce the amount of time employees are given to vote on proposed changes to workplace agreements from seven days to just one. The reform was prompted by the pandemic, but Burke argues that any such changes to enterprise agreements will remain in place after the coronavirus abates and will need to be removed via another vote by employees. Labor will put a disallowance motion to the Senate when parliament resumes, and it intends to seek the support of crossbenchers.

CORPORATES
AUSTRALIAN LABOR PARTY