Fiscal Policy

Sovereign wealth fund not a priority

22 May 2012 | Graham Bradley

PRINT: 22 May 2012 | PAGE 2 | Sovereign wealth fund not a priority

It does not make sense to lock away funds when the nation is underinvested in infrastructure.

Australia’s Afghan aid under cloud

22 May 2012 | Jason Thomas

PRINT: 22 May 2012 | PAGE 3 | Australia’s

The announcement by Afghanistan’s President, Hamid Karzai, that Afghan security forces will take the lead in a third of all provinces coincides with Prime Minister Julia Gillard’s opinion that Australian troops can withdraw by 2013, a year earlier than expected. This means AusAid must deliver programs without the protection of Australian forces.

eHealth to save $11bn for budget

22 May 2012 | David Ramli

PRINT: 22 May 2012 | PAGE 1 | eHealth to save $11 billion

The Federal Government has claimed its troubled electronic health programs will save more than $11 billion over the next 15 years as its guns for a budget surplus.

Vic, NSW risk cut to AAA rating

22 May 2012 | Jacob Greber

PRINT: 22 May 2012 | PAGE 2 | Vic, NSW face cut to

The Victorian and NSW governments are at risk of breaching debt levels closely watched by Standard & Poor’s and triggering a downgrade in their credit ratings, analysts say.

We’re not the safe haven we think we are

21 May 2012 | David Bassanese

PRINT: 21 May 2012 | PAGE 5 | We’re not the safe haven we’d like to think we are

With respect to former federal Treasury secretary Ken Henry, the possibility that the Australian dollar could act as a “safe haven” during the European financial crisis is likely a pipe dream.

Europe: heavy weather heads this way

21 May 2012 | Warwick McKibbin

PRINT: 21 May 2012 | PAGE 1 | Europe: heavy weather heads this way

Events in Europe this week point to a rapid end game for Greece in the euro. One crucial issue, especially for Australia, is the spillover we can expect from a crisis in Europe to the rest of the world.

If Greece goes under . . .

19 May 2012 | Tony Boyd

PRINT: 19 May 2012 | PAGE 1 | If Greece goes under . . .

Global financial markets during the week followed the normal pattern seen over the past two years by switching from being bullish to pricing in a worst-case scenario from the Greek sovereign debt crisis.

Fiscal union averts euro-style disaster

19 May 2012 | Jacob Greber

PRINT: 19 May 2012 | PAGE 3 | Fiscal union averts euro-style disaster

Without the federal GST system, which shifts wealth between fastest-growing and laggard states, Australia would face problems similar to those in the euro zone.

Let stabilisers do their job

19 May 2012 | Alan Mitchell

PRINT: 19 May 2012 | PAGE 2 | Let stabilisers do their job

It is easy to imagine a circumstance in which the government’s precious surplus would be in danger of disappearing.

Germany to feel the heat from the US and its allies

19 May 2012 | Larry Elliott

PRINT: 19 May 2012 | PAGE 15 | Heat on Germany

US President Barack Obama is to put pressure on Germany to ease the pain of austerity with policies to boost growth, as he uses two days of talks with the G8 leaders to warn Europe it needs to act swiftly.

Big challenges in uncertain world

19 May 2012 | The Australian Financial Review

PRINT: 19 May 2012 | PAGE 62 | Serious challenges in an uncertain world

Editorial | Evidence of fragility in the world economy and financial market jitters should probably be viewed here in Australia with caution rather than alarm.

Barnett lauds ‘historic’ WA future fund

18 May 2012 | Natalie Gerritsen

WA Premier Colin Barnett has labelled the state’s new $1 billion future fund “historic” and says it is the first time a state budget has looked to secure benefits for the next generation and beyond.

Northern Rock rescue may cost taxpayer £2bn

18 May 2012 |

Rescuing Northern Rock could cost British taxpayers £2 billion, but it should be seen as the cost of securing financial stability, according to the National Audit Office.

Moody’s downgrades 16 Spanish banks

18 May 2012 |

Moody’s Investors Service has downgraded the long-term debt ratings for 16 Spanish banks, in part because of constraints on the government’s ability to provide them with support.

Monetary easing may be needed

18 May 2012 | Joshua Zumbrun

PRINT: 18 May 2012 | PAGE 40 | Monetary easing may be needed

The US Federal Reserve signalled further monetary easing remains an option to protect the US economy from the danger that legislators will fail to reach agreement on the budget or Europe’s debt woes worsen.

Europe reaps a bitter harvest

18 May 2012 | The Australian Financial Review

PRINT: 18 May 2012 | PAGE 1 | Europe reaps a

Editorial | European policymakers have no one but themselves to blame for their economic and financial predicament. It is the direct result of the political compromises put in place to secure monetary union.

Ordinary vision in extraordinary times

18 May 2012 | Jonathan Barrett

PRINT: 18 May 2012 | PAGE 4 | Very ordinary vision for extraordinary times

Barrett | There was once a serious secessionist movement in WA – now the only thing the state is seceding from is good public debate.

SMEs want payroll reform

18 May 2012 | Natalie Gerritsen

PRINT: 18 May 2012 | PAGE 4 | SMEs want payroll reform

The West Australian government has given small businesses a one-off break from payroll tax next year, but many business owners and industry groups would rather see a long-term cut to the 5.5 per cent tax rate.

Flat housing stamps out duty cash

18 May 2012 | Natalie Gerritsen

PRINT: 18 May 2012 | PAGE 4 | Flat housing stamps out duty cash

Western Australia’s predicted stamp duty revenue has been slashed by $836 million over the next four years thanks to the state’s flat housing market.

Economists prop up Gillard’s higher debt ceiling

18 May 2012 | Fleur Anderson

PRINT: 18 May 2012 | PAGE 2 | Economists prop up PM’s higher debt ceiling

Economists have defended the government’s decision to lift the debt ceiling by $50 billion, saying a financial buffer is important to preserve the status of Australia’s bond market as a safe haven during tough times.

WA sets up $4.7bn fund

18 May 2012 | Jonathan Barrett

PRINT: 18 May 2012 | PAGE 1 | WA sets up $4.7bn fund

Western Australia expects to have locked away $4.7 billion in a new sovereign wealth fund by 2032, detailed with yesterday’s budget, thanks to the mining boom.

WA budget | At a glance

17 May 2012 | Jonathan Barrett

The key points of the 2012 West Australian budget.

WA budget | Winners & losers

17 May 2012 | Julie-anne Sprague

Winners and losers from the 2012 West Australian budget.

WA sets up $4.7bn future fund

17 May 2012 | Jonathan Barrett

PRINT: 18 May 2012 | PAGE 4 | Future fund aims to spread the riches

Updated | WA will launch a mining royalty-fuelled future fund that is forecast to grow into a $4.7 billion cash box by 2032, as part of a pre-election budget designed to spread the benefits of unprecedented wealth.

Giddings fails to make the cuts

17 May 2012 | Jason Murphy

PRINT: 18 May 2012 | PAGE 4 | Giddings keeps foot on the accelerator

Tasmanian Premier Lara Giddings’ budget shows the state has failed to meet its own targets to repair public finances.

Key points | Tasmanian state budget

17 May 2012 | Jason Murphy

The important facts and figures from the 2012-13 Tasmanian state budget.

Tasmanian deficit $283m despite higher taxes

17 May 2012 | Jason Murphy

PRINT: 18 May 2012 | PAGE 4 | State forecasts $283m deficit

Tasmania will endure economic growth of less than half the national average in 2012-13 and unemployment of 7.5 per cent, as its government delivers another big budget deficit.

Budget took Europe outlook into account: Swan

17 May 2012 |

Treasurer Wayne Swan does not perceive a need to update budget forecasts because of recent events in Europe, saying Treasury has already accounted for a bleak outlook.

Why is Britain trying to save the euro?

17 May 2012 | Peter Oborne

The European Project is doomed – and it's not Britain’s job to delay its inevitable demise, writes Peter Oborne.

Euro zone damage control doubtful

17 May 2012 | Dario Perkins

PRINT: 17 May 2012 | PAGE 2 | Euro zone damage control doubtful

With a Greek exit from the euro again on the cards, the chances of contagion also rise dramatically.

Bias on interest rates is to the downside

17 May 2012 | David Bassanese

PRINT: 16 May 2012 | PAGE 4 | A downside for rates – and the surplus

The upshot of commentary from both the Federal Treasury and Reserve Bank of Australia is that the bias on official interest rates remains very much to the downside, and the Gillard government will have a very hard time meeting its budget surplus commitment.

Market takes a heavy Toll

16 May 2012 | Jacob Greber

PRINT: 16 May 2012 | PAGE 1 | Market takes a heavy Toll

Toll Holdings chief executive Brian Kruger says conditions have never been tougher. “[I’ve] never seen or been involved in a market where there’s been so much noise from our customers about the need for us to help them manage their margin issues,” he said.

Defence: too quiet on fiscal front

16 May 2012 | James Brown

PRINT: 16 May 2012 | PAGE 1 | Defence: too quiet on fiscal front

On current form, you’d be hard pressed to convince Australians that their defence force represents value for money or that taxpayers should be concerned about defence cuts in the budget.

Tax cuts for environment

16 May 2012 | Alan Mitchell

PRINT: 16 May 2012 | PAGE 1 | Tax cuts for environment

Christine Milne celebrates her role in stopping a cut in the company tax rate but complains about the decision to scrap green building subsidies.

Greece set for new election as government talks collapse

16 May 2012 |

Attempts to form a government in Greece have collapsed, jolting financial markets at the prospect leftists opposed to an EU bailout could sweep to victory, nudging the euro zone crisis into a dangerous new phase.

Budget offers business growth potential

16 May 2012 | Wayne Swan

PRINT: 16 May 2012 | PAGE 2 | Budget offers business growth potential

Opinion | Labor’s fiscal policies have led to lower interest rates, less spending, a productivity push and big opportunities in Asia.

Tax rise changes sums for Mapletree

16 May 2012 | Gretchen Friemann

PRINT: 16 May 2012 | PAGE 1 | Tax rise changes sums for Mapletree

Singapore’s Mapletree Logistics Trust is recalibrating its figures on a $500 million deal with Stockland following last week’s surprise tax increase for foreign real estate investors.

Fiscal discipline sadly lacking

16 May 2012 | The Australian Financial Review

PRINT: 16 May 2012 | PAGE 1 | Nation’s economy

Editorial | Treasury secretary Martin Parkinson makes a compelling case for substantive fiscal discipline in order to repair the deep structural problems in the federal budget. Pity his political masters haven’t got the message.

Fiscal cosmetic surgery grows

16 May 2012 | Alan Mitchell

PRINT: 16 May 2012 | PAGE 2 | Cosmetic surgery grows

Moving money around for purely cosmetic purposes appears to be standard international fiscal practice.

Henry warns of upward pressure on ‘safe’ $A

16 May 2012 | Laura Tingle

PRINT: 16 May 2012 | PAGE 3 | Henry warns of upward pressure on ‘safe’ $A

Former Treasury secretary Ken Henry has given a gloomy prognosis on European economies, saying Australia may become a safe haven for international investors.

Swan wants business back

16 May 2012 | Jennifer Hewett

PRINT: 16 May 2012 | PAGE 1 | Swan wants business back

Hewett | Wayne Swan has made a belated attempt to reassure a sceptical business community that your Treasurer is still here to help, that he still cares about business.

‘Vote-buying’ budget risks dividing society: Murray

15 May 2012 | Patrick Durkin

Former Future Fund chairman David Murray has savaged the federal budget for “vote buying”, warning that it risks dividing society.

Treasury blasts budget attacks

15 May 2012 | Jacob Greber

PRINT: 16 May 2012 | PAGE 1 | Treasury defensive on budget

Treasury Secretary Martin Parkinson has defended the government’s economic forecasting, saying there is more uncertainty about revenue and changes within the economy than before.

Surplus opens way for RBA rate cuts: Swan

15 May 2012 | Gemma Daley

Treasurer Wayne Swan says the difference between Australia and Europe couldn’t be more stark and that the community understands the budget surplus opens the way for further Reserve Bank of Australia interest rate movements.

Essential projects need cash

15 May 2012 | Megan Motto

PRINT: 15 May 2012 | PAGE 2 | Essential

In the race to surplus, the federal government has produced a budget with little new, substantive, or immediate investment in the infrastructure pipeline.

When debt really is something owed

15 May 2012 | Scott Ryan

PRINT: 15 May 2012 | PAGE 2 | When debt really is something owed

While some self-declared experts complain about a fixation with debt in the Australian political debate, thankfully the common sense of Australians drives political discussions.

Super strategy upside down

15 May 2012 | Andrew Podger

PRINT: 15 May 2012 | PAGE 2 | Super strategy upside down

The orthodox approach is to exempt super contributions from tax and to tax all benefits. We do the reverse.

Suncorp’s Snowball slams budget message

14 May 2012 | Ruth Liew

PRINT: 15 May 2012 | PAGE 3 | Not a premium budget: insurer

The federal budget ran the risk of “squandering a once in a generation opportunity to promote savings”, says Suncorp’s chief executive.

Lift the debt ceiling or lose liquidity

14 May 2012 | Stephen Koukoulas

PRINT: 14 May 2012 | PAGE 2 | Lift debt ceiling or lose liquidity

The opposition is railing hard against lifting the debt ceiling for reasons that have nothing to do with governance or economics, but a lot to do with a political scare campaign.

Congress must navigate rocky fiscal shoals

14 May 2012 | Ben Potter

PRINT: 14 May 2012 | PAGE 2 | Congress must navigate rocky shoals

A list of tax increases and spending cuts will cut in if Congress doesn’t get its act together later this year and reschedule them. The withdrawal of 3½ to 5 per cent of GDP could throw a fragile economy back into recession.

Case of the $129m health bill

14 May 2012 | Mathew Dunckley

PRINT: 14 May 2012 | PAGE 2 | Case of the $129m health bill

It is early in the season but Victoria will be hard to beat in the contest for this year’s best numbers fiddle, as a closer look at the state’s budget papers reveals.

Budget, rate cut set to boost consumer sentiment

14 May 2012 | Jacob Greber

PRINT: 14 May 2012 | PAGE 4 | Budget, rate cut set to boost consumer sentiment

Confidence is at the centre of economic data out this week, as the government and markets look for guidance on the impact of the budget and interest rate blockbuster.

Jobs data gives hope but high costs bite

14 May 2012 | The Australian Financial Review

PRINT: 14 May 2012 | PAGE 1 | Jobs data gives hope but high costs bite hard

Editorial | Unemployment figures can be volatile, but the unexpectedly good figure for April shows the economy is restructuring, despite the federal government emphasising handouts over productivity.

More cuts if needed for surplus: Wong

13 May 2012 |

Finance Minister Penny Wong says the federal government is prepared to make more spending cuts to keep its pledge for a budget surplus in 2012-13.

France’s finances worse than expected: Hollande

12 May 2012 |

President-elect Francois Hollande said on Friday that France’s public finances were worse than indicated by the outgoing conservative government.

Fitch says EU ratings at risk if Greek exits

12 May 2012 |

Fitch ratings agency said on Friday that if Greece left the euro zone as a result of its political crisis or its economy failing to stabilise, it would impact the sovereign ratings of euro zone countries across the board.

We need to talk about Greece

12 May 2012 | Matthew Drummond

PRINT: 12 May 2012 | PAGE 2 | We need to talk about Greece

After playing their hands very publicly, the leaders of Germany and France will meet in private to discuss their differences.

Tax cuts, easier said than done

12 May 2012 | Alan Mitchell

PRINT: 12 May 2012 | PAGE 1 | Tax cuts, easier said than done

Anyone who thinks they have heard the last of tax reform should take a closer look at Tuesday’s budget.

Means testing to hit home

12 May 2012 | Bina Brown

PRINT: 12 May 2012 | PAGE 2 | Means testing to hit home

The budget helps those with school-aged children, but families may pay more for medical expenses and insurance.

Labor makes Abbott’s job easy

12 May 2012 | Geoff Kitney

PRINT: 12 May 2012 | PAGE 1 | Just cruising: Abbott’s job made easy

Kitney | Opposition Leader Tony Abbott’s task is so ridiculously easy that it clearly makes some on his own side jealous.

Tactic shows Labor is out of touch

12 May 2012 | The Australian Financial Review

PRINT: 12 May 2012 | PAGE 1 | Class envy tactic shows Labor out of touch

Editorial | The ALP may well have been formed at a time when there was genuine conflict between uneducated working class labour and capital, but as a society and an economy Australia has well and truly moved on.

US economy: the recovery that’s quite depressing

12 May 2012 | Ben Potter

PRINT: 12 May 2012 | PAGE 1 | US economy: the recovery that’s quite depressing

It’s the recovery that doesn’t satisfy, economists at Wells Fargo Securities say. The world’s leading economy is neither stalling, as it did a year ago, nor nearing escape velocity.

Abbott ‘out of touch’: PM

11 May 2012 | Gemma Daley

Opposition Leader Tony Abbott is “incredibly out of touch”, Prime Minister Julia Gillard has said, citing his refusal to support the bonus for school children in low-income families announced in the budget.

US has first monthly budget surplus in 42 months

11 May 2012 |

The United States posted a budget surplus of $USUS59.12 billion in April, the first surplus in 42 months, on a rise in tax receipts and a drop in government spending.

Mixed signals on house finance

11 May 2012 | Tony Boyd

PRINT: 11 May 2012 | PAGE 1 | Mixed signals on house finance

NAB chief executive Cameron Clyne says we live in a 10-speed economy that is full of confusing signals.

Another budget later and we’re deeper in debt

11 May 2012 | Andrew Robb

PRINT: 11 May 2012 | PAGE 1 | Another year later and we’re deeper in debt

While the government boasted about a surplus, it quietly raised the national debt ceiling by $50 billion.

Great expectations vanish

11 May 2012 | John Roskam

PRINT: 11 May 2012 | PAGE 1 | Great expectations vanish

Business should not be surprised by broken Labor promises.

Surplus a lifebuoy Labor can cling to

11 May 2012 | Laura Tingle

PRINT: 11 May 2012 | PAGE 1 | Surplus a lifebuoy Labor can cling to

“When you are on the high wire,” one Labor figure said yesterday, “it doesn’t matter how high it is, and there is no point looking down.”

Productivity stifled by tax and benefits

11 May 2012 | Geoff Winestock

PRINT: 11 May 2012 | PAGE 2 | Productivity stifled by tax and benefits

Winestock | This is not about what is fair. It is about how to send the right signals to work harder, and the important thing here is the marginal tax rate.

Budget cash to link researchers and business

11 May 2012 | Peter Roberts

PRINT: 11 May 2012 | PAGE 43 | Budget cash to link researchers and business

A budget experiment to create the “missing link” between business and public sector research has been welcomed as an antidote to a weakness in Australian innovation.

Foreign ructions may check $A

11 May 2012 | Jason Murphy

PRINT: 11 May 2012 | PAGE 5 | Foreign ructions may check $A

The Australian dollar pulled back from its close dance with parity yesterday, on positive domestic news, but the uncertain international situation means it has not left the dance floor just yet.

Sovereign wealth fund ‘not needed’

11 May 2012 | Fleur Anderson

PRINT: 11 May 2012 | PAGE 43 | Sovereign wealth fund ‘not needed’

A sovereign wealth fund without other changes to national fiscal goals would not make any impact on government saving or net financial worth, the federal government says.

Directors call for tax reform

11 May 2012 | RevenueKatie Walsh

PRINT: 11 May 2012 | PAGE 4 | Directors sharpen words for battle on tax reform

The surge of company directors and executives calling for substantial tax reform grew on Thursday in reaction to the federal government reneging on its promise to cut company tax.

Australia must focus on creating wealth

11 May 2012 |

PRINT: 11 May 2012 | PAGE 4 | We need to focus on creating wealth

The fundamental problem with this budget is that it deliberately, coldly, plays the class war card, says Tony Abbott in Parliament. This is an edited version of his budget-in-reply speech.

North Shore ‘battlers’ up in arms

11 May 2012 | Claire Stewart

PRINT: 11 May 2012 | PAGE 4 | North Shore ‘battlers’ up in arms

Julia Gillard has managed to rile a broad cross section of locals on the ‘Insular Peninsular’.

Double trouble submerges Swan’s ‘triple triple’

11 May 2012 | Geoff Kitney

PRINT: 11 May 2012 | PAGE 3 | Double trouble submerges Swan’s ‘triple triple’

Around the Cabinet table it’s referred to as “our triple triple” and Federal Treasurer Wayne Swan wears it even more proudly than his “world’s best finance minister” citation.

Fuss, bluster . . . but not much more from Abbott

11 May 2012 | Laura Tingle

PRINT: 11 May 2012 | PAGE 4 | Fuss, bluster . . . but not much in way of detail

Much of the political strategy underlying Labor’s 2012 budget aimed to finally put some heat on Tony Abbott to explain his own policies and spending plans.

Labor goes back to the future

11 May 2012 | John Black

PRINT: 11 May 2012 | PAGE 1 | Labor goes back to the future

In the late 1960s, the ALP fought out one of those eye-glazing factional debates about whether the party should support equality of outcomes versus equality of opportunity.

Abbott slams class warfare

11 May 2012 | Laura Tingle

PRINT: 11 May 2012 | PAGE 1 | Abbott slams

Opposition Leader Tony Abbott has accused the federal government of playing the “class war card” with the budget and says the Prime Minister has reinforced her “trust problem” by dumping company tax cuts.

Plunge in jobless erodes rate cut hopes

10 May 2012 | Jacob Greber

PRINT: 11 May 2012 | PAGE 1 | Plunge in jobless erodes rate cut hopes

The budget’s $5 billion in handouts to individuals may force the Reserve Bank to abandon short-term interest rate cuts after the jobless rate unexpectedly fell to 4.9 per cent, its lowest level since the financial crisis.

Super changes sabotage certainty: AMP

10 May 2012 | Duncan Hughes

PRINT: 10 May 2012 | PAGE 1 | Super changes sabotage certainty: AMP

Federal government “tinkering” with superannuation and tax is jeopardising the nation’s savings, the chiefs of AMP, the largest wealth manager, warn.

Spain, Portugal committed to budget consolidation

10 May 2012 |

Spain and Portugal urged Greece on Wednesday to stick to its bailout programme and stay in the euro and promised to spare no effort in reducing their own budget deficits

Greece to receive €5.2bn in aid: EU

10 May 2012 |

Greece will receive €5.2 billion ($6.72 billion) in bailout loans as anticipated on Thursday, despite rising uncertainty over the country’s political future, the European Commission says.

Behind the surge to surplus

10 May 2012 | Chris Richardson

PRINT: 10 May 2012 | PAGE 2 | Behind Labor’s surge to surplus

The Gillard government is trying very hard to keep its promise of a budget surplus in 2012-13. But it had to break a bunch of other promises to do it.

Return of old-fashioned fiscal discipline

10 May 2012 | Alan Mitchell

PRINT: 10 May 2012 | PAGE 2 | Return of old-fashioned fiscal discipline

The budget appears to have achieved one very important goal: it has reinstated a bipartisan medium-term fiscal strategy.

A hit at the psychology of super

10 May 2012 | Martin Codina

PRINT: 10 May 2012 | PAGE 1 | A hit at the

On Tuesday night, the government once again altered the superannuation rules. Two big changes will halve the ability of Australians aged over 50 to contribute to super, and will impose a new tax on higher income earners.

Notebook: socialism makes a comeback

10 May 2012 | The Heritage Foundation

PRINT: 10 May 2012 | PAGE 74 | NOTEBOOKSocialism makes a comeback

Last weekend the people of France took a sharp turn to the left, and the rest of Europe may be on the brink of rebuking its recent tack towards fiscal responsibility.

If not austerity nor stimulus, then what?

10 May 2012 | Jack Ewing

PRINT: 10 May 2012 | PAGE 1 | If not austerity nor stimulus, then what?

Everyone in Europe seems to agree that government austerity has been overdone. Now comes the hard part: finding someone to pay for less of it.

Bonds dive with more falls likely

10 May 2012 |

PRINT: 10 May 2012 | PAGE 39 | Bonds dive with more falls likely

Tuesday night’s federal budget drove yields on 10-year Australian government debt down to fresh record lows on Wednesday, with speculation yields could fall even further.

Consumer stocks depend on RBA

10 May 2012 |

PRINT: 10 May 2012 | PAGE 39 | Consumer stocks depend on RBA

Strategists say whether the federal budget’s ‘cash bonanza’ will help consumer cyclical stocks depends on the reaction of the Reserve Bank of Australia.

No vote, more tax, few perks: foreigners pay

10 May 2012 | Katie Walsh

PRINT: 10 May 2012 | PAGE 25 | No vote, more tax, few perks: foreigners pay

A smattering of changes introduced in the budget on Tuesday that target foreigners will damage the attractiveness of Australia as an investment destination, business advisers warn.

Jobs to go as forces take a hit

10 May 2012 | John Kerin

PRINT: 10 May 2012 | PAGE 25 | Jobs to go as forces take a hit

A major union warned last night that up to 250 Qantas Defence Services maintenance jobs were at risk because of the federal government’s savage cuts to the defence budget.

Get set for Beijing’s numbers game

10 May 2012 | Robert Guy

PRINT: 10 May 2012 | PAGE 2 | Get set for Beijing’s numbers game

Guy | It’s a big week for resource executives and investors as Beijing begins its monthly parade of economic data.

Fuel tax weighs on heavy-truck drivers

10 May 2012 | Claire Stewart

PRINT: 10 May 2012 | PAGE 3 | Fuel tax weighs on heavy-truck drivers

Somewhere outside Melbourne yesterday, Jason Smith turned on the radio of the flat nosed rig he was driving to Brisbane to hear that the Gillard government had slapped an extra 2¢ a litre on the heavyweight users road toll.

Swan insists RBA has wider scope for cuts

10 May 2012 | Jacob Greber

PRINT: 10 May 2012 | PAGE 3 | Swan insists RBA has wider scope for cuts

Chances that the central bank will cut the benchmark lending rate to a record low this year have increased since the budget on speculation domestic growth will be dampened by Treasurer Wayne Swan’s surplus drive.

Retailers pray for a spending revival

10 May 2012 | Sue Mitchell

PRINT: 10 May 2012 | PAGE 3 | Praying for a spending revival

Retailers are crossing their fingers that consumers will spend rather than save the bulk of the $4.5 billion in cash handouts, benefits and savings flowing from the federal budget.

A thumbs-up from ratings agencies

10 May 2012 | Brendon Lau

PRINT: 10 May 2012 | PAGE 20 | Thumbs up from agencies

The three major ratings agencies have reaffirmed their highest sovereign credit rating for Australia.

ANZ rebukes Swan for playing politics

10 May 2012 | Joanna Heath

PRINT: 10 May 2012 | PAGE 18 | ANZ rebukes Swan for playing politics

ANZ Banking Group chief executive Mike Smith has questioned the legitimacy of Treasurer Wayne Swan’s commitment to a surplus.

Changes to hurt single parents

10 May 2012 | Fleur Anderson

PRINT: 10 May 2012 | PAGE 3 | Changes to hurt single parents

Unemployed single parents will be able to collect $31,900 a year in government benefits following budget measures but will lose up to $3120 a year once their youngest child reaches the age of eight.

Lack of focus on productivity

10 May 2012 | Louise Dodson

PRINT: 10 May 2012 | PAGE 2 | Lack of focus on productivity

Business groups have questioned whether Treasurer Wayne Swan’s budget addresses the urgent issues facing companies including skills shortages, rising costs and a loss of international competitiveness.

Industry slams rise in withholding tax

10 May 2012 | John Kehoe

PRINT: 10 May 2012 | PAGE 13 | Industry slams rise in withholding levy

Tax rises for foreigners with stakes in investment trusts will jeopardise investment in crucial infrastructure, industry participants say.

Budget slammed as Labor reels

10 May 2012 | John Kehoe

PRINT: 10 May 2012 | PAGE 1 | Budget slammed as Labor reels

The federal government’s adviser on transforming Australia into a financial centre, Mark Johnson, has condemned a surprise doubling in the budget of withholding tax for foreigners investing in managed investment trusts.

Budget fails tax reform litmus test

10 May 2012 | The Australian Financial Review

PRINT: 10 May 2012 | PAGE 1 | Budget fails

Editorial | Labor’s 2012-13 budget shows the government has failed dismally to fulfil Kevin Rudd’s promise to embrace “root and branch’’ tax reform.

Gillard attacked over North Shore gibe

10 May 2012 | Claire Stewart

PRINT: 10 May 2012 | PAGE 16 | Gillard attacked over North Shore gibe

Shadow Treasurer Joe Hockey has criticised Prime Minister Julia Gillard for “declaring war” on Australians after her comments implying Sydney’s North Shore voters were too rich to understand what the government’s Schoolkids’ bonus and family payments would mean for 1.5 million lower-income families.

Regional cash splash keeps indpendents sweet

10 May 2012 | Sophie Morris

PRINT: 10 May 2012 | PAGE 11 | Regional cash splash keeps independents on side

Parks and playgrounds in the electorates of independent MPs Tony Windsor and Rob Oakeshott are among projects on sweetener list.

Thomson saves the day from horror

10 May 2012 | Geoff Kitney

PRINT: 10 May 2012 | PAGE 1 | Thomson saves the day from horror

Wayne Swan’s fifth budget teetered on the brink of political irrelevance during 15 minutes of horror for the Gillard government.

Get ready for the crunch in confidence

10 May 2012 | Nigel Hopkins

PRINT: 10 May 2012 | PAGE 3 | Beware, the crunch is nigh

Prepare for a crunch in business confidence in September 2013, when expectations of a Budget surplus are dashed, warn economists.

No ‘loaves and fishes’ for business

10 May 2012 | Lucille Keen

PRINT: 10 May 2012 | PAGE 3 | No loaves and fishes for business

Victorian businesses are sceptical and wonder what is in it for them following the federal budget. Concern centres on the lack of support for declining sectors, the promised surplus and the carbon tax.

Euro woes, budget knock almost 1pc off shares

09 May 2012 | Bianca Hartge-Hazelman

PRINT: 09 May 2012 | PAGE 4 | Miners hit in Europe, budget fallout

The spending cuts announced in Tuesday’s budget and growing uncertainty in Europe weighed on investor sentiment and pushed the local sharemarket lower.

Ratings agencies are positive on budget

09 May 2012 |

The three major international credit ratings agencies have given the thumbs up to the federal government's planned return to surplus – but warn that it may be hard to achieve.

Surplus gives RBA room to cut rates: Swan

09 May 2012 | Gemma Daley

Updated | Treasurer Wayne Swan has said delivering the budget surplus will boost confidence and give the Reserve Bank of Australia room to cut rates.

SBS wins $158m funding injection

09 May 2012 | Ben Holgate

PRINT: 10 May 2012 | PAGE 24 | Embattled SBS welcomes $158m funding fillip

Updated | Multilingual broadcaster SBS has received an extra $158 million in the federal budget, offsetting double-digit declines in its advertising revenue and a net loss for this financial year.

Surplus doesn’t wash with offshore investors

09 May 2012 | Ben Potter

PRINT: 10 May 2012 | PAGE 3 | Surplus doesn’t wash with offshore investors

Wayne Swan’s return to budget balance met with a lukewarm reception from the few Atlantic commentators to shift their gaze from Europe.

Regulators face harsh reality

09 May 2012 | tony boyd

PRINT: 09 May 2012 | PAGE 56 | Regulators face harsh reality

The spin from the three ministers who oversee the Australian Securities and Investments Commission is that an extra $180 million in funding over four years will ensure strong and effective oversight of the Australia’s financial markets to protect retail investors and their retirement savings.

Too many tricks and handouts

09 May 2012 | The Australian Financial Review

PRINT: 09 May 2012 | PAGE 2 | Far too many

Editorial | Treasurer Wayne Swan advertised his 2012-13 budget as the biggest fiscal consolidation in 25 years, and warned the community that it would be painful. But while the government deserves credit for returning the budget to surplus, the congratulations can only be half-hearted.

The day in numbers

09 May 2012 |

The 2012 federal budget reveals figures, very large, very small, and somewhere in between, for a cornucopia of projects.

Wayne’s signature dish, baked to imperfection

09 May 2012 | Rowan Dean

Dean | In a nail-biting audition in Canberra, desperate cooking show contestant Wayne did his best to impress the judges with his unique “Baked Surplus à la Fair Go” recipe.

2012 Budget speech

09 May 2012 | Wayne Swan

The four years of surpluses I announce tonight are a powerful endorsement of the strength of our economy, resilience of our people, and success of our policies.

Scott Haslem, economist, UBS

09 May 2012 |

Government says half of its $33.6 billion of savings are reductions in spending. The budget offers no meaningful cuts to red tape and regulatory burden.

QLD

09 May 2012 |

Will receive a further instalment of $879.3 million to start, progress and complete a range of infrastructure projects across next financial year.

Team that teased out the numbers

09 May 2012 | Laura Tingle

PRINT: 09 May 2012 | PAGE 26 | Team that teased the numbers

The clichés about the framing of federal budgets inevitably involve the cabinet locked in the bunker and bureaucrats working late into the freezing Canberra nights. But the final shape of the 2012-13 budget was settled in very different surroundings.

Debt ceiling traded in for one $50 billion bigger

09 May 2012 | Jason Murphy

The Gillard government will increase its debt ceiling to $300 billion as it borrows to fund spending both on and off budget.

Corporates still waiting for changes to debt issuance

09 May 2012 | Philip Baker

Almost everyone seems to back the idea of developing a local retail corporate bond market to broaden corporate funding sources and provide exposure to fixed income products.

Smile if you need a public dentist

09 May 2012 | Emma Connors

People on the waiting list for public dental care are the big winners in health, with a $515.3 million spending boost, but some GPs, a few drug companies and many on higher incomes will lose out.

NDIS costs shared with states

09 May 2012 | Emma Connors

The long-awaited national disability insurance scheme has inched further into view with $1 billion in funding for pilot projects in four locations.

Pledge put on hold

09 May 2012 | John Kerin

The government has dumped its pledge to boost aid spending to 0.5 per cent of gross national income by 2015, in a further bid to prop up the surplus.

Water, pest management and health

09 May 2012 | Joanna Mather

Rural Australia will benefit from spending on water saving measures, biosecurity and grants to support relocating healthcare professionals.

Windfall likely to benefit bonds

09 May 2012 | Joanna Heath

PRINT: 09 May 2012 | PAGE 4 | Windfall likely to benefit bonds

Measures in last night’s budget to deliver extra cash to some consumers are unlikely to give equities an extra kick, strategists say, with the greater impact expected to show in the bond market.

Big win for some small businesses

09 May 2012 | Fleur Anderson

The interests of 110,000 small businesses have taken precedence over the demands from big businesses for a corporate tax cut.

Public sector takes a hit

09 May 2012 | Verona Burgess

Federal departments and agencies will cut a net 3073 jobs in 2012-13, with an extra 1358 positions surprisingly lost in 2011-12, bringing the cuts to 4421 over two years.

Jennifer Westacott, chief executive, Business Council of Australia

09 May 2012 |

The corporate community did not get the long-term plan for future budget management that they have sought to provide more certainty to business decision-making.

Truckies to pay heavy duty for road use

09 May 2012 | Louise Dodson

Companies using heavy vehicles on public roads for business will be hit with a sharp increase in charges to reap almost $700 million for the budget bottom line.

Online sales add to GST revenue slump

09 May 2012 | Mark Ludlow

PRINT: 09 May 2012 | PAGE 15 | Online sales add to tax revenue slump

A slower than expected economy and Australians’ growing love for buying products online has contributed to a $3.1 billion shortfall in GST revenue for next financial year.

Airport charge taps China but tourism testy

09 May 2012 | Pip Freebairn

Treasurer Wayne Swan faces a backlash over a rise in the passenger movement fee for travellers passing through airports which will be used to fund Asian century initiatives.

Bar lowered on building regulator

09 May 2012 | Mathew Dunckley

PRINT: 09 May 2012 | PAGE 13 | Bar lowered on building regulator

The new-look building industry watchdog will have to do its job with millions of dollars less than its predecessor.

Swan says no to sovereign wealth fund

09 May 2012 | Michael Dwyer

PRINT: 09 May 2012 | PAGE 12 | No to sovereign wealth fund

Treasury recognises the need for prudent longer-term fiscal planning to boost government saving, but that runs counter to the politics of Wayne Swan’s fifth budget.

Struggling sectors dodge scalpel but benefits are few

09 May 2012 | Mathew Dunckley

The significance of the budget for industry support lies more in what was not done than what will actually be spent on the sector.

Surplus too small, budget too tight

09 May 2012 | Alan Mitchell

Mitchell | Should the government be tightening fiscal policy when large chunks of the economy are in effect in recession? Ideally, no.

Pauline Vamos, CEO, Association of Superannuation Funds of Australia

09 May 2012 |

Pauline Vamos received far less than she had hoped for. She was especially disappointed at the two-year deferral of the higher contributions caps for over-50s.

Budget briefs

09 May 2012 |

Tax rates applying to non-residents will be adjusted to align them with the taxes paid by residents, in a measure forecast to raise $88.9 million over four years. From July, all income under $80,000 will be taxed at 32.5 per cent, increasing to 33 per cent in 2015.

Who pays for loss measure? Everyone

09 May 2012 | Katie Walsh

The four business tax breaks flagged by Treasurer Wayne Swan’s working group as possible candidates for slashing to pay for the new $700 million loss carry-back measure triggered an outcry from business.

Exec perks in firing line

09 May 2012 | Katie Walsh

Executive payouts, perks and offshore tax havens were targeted as the government continued its crackdown on higher earners.

Corporate Australia dudded

09 May 2012 | John Kehoe

Kehoe | If tax reform ever really got going under the Gillard government, the budget confirms any serious agenda is now firmly on the back burner.

No apologies for soft-shoe shuffle

09 May 2012 | Fleur Anderson

Treasurer Wayne Swan has used a multibillion-dollar shuffle to push next year’s budget into surplus at the same time as promising $22 billion in new spending.

Business left on the sidelines

09 May 2012 | Jennifer Hewett

PRINT: 09 May 2012 | PAGE 2 | Business left on the sidelines

Hewett | The business community doesn’t need to read the fine print of the budget to get the message. Wayne Swan’s focus is on getting the largest political payback. And for business that means more tough luck.

Stephen Walters, JPMorgan

08 May 2012 |

The wishlist and the reality of the budget differ widely on some scores but less so on others.

Robert Jeremenko, senior tax counsel, The Tax Institute

08 May 2012 |

Reform State taxes Remove raft of inefficient stamp duties and insurance levies.

Nathan Fabian, chief executive, Investor Group on Climate Change

08 May 2012 |

Clean energy Steady ahead setting on implementing the clean energy future framework. That means all the key agencies such as Clean Energy Regulator, Climate Change Authority, ARENA and CEFC receive their funding.

Property industry splits over ‘cack-handed’ budget

08 May 2012 | Ben Woodhead

The property industry has delivered wildly divergent assessments of the 2012 federal budget, describing it on the one hand as disappointing and cack-handed, and on the other as sending the right message.

Budget surplus to bring more rate cuts: economists

08 May 2012 |

Returning the federal budget to surplus will put downward pressure on the Australian dollar and could lead to lower interest rates, economists have said.