Friday, March 8, 2019

Abolish lucrative tax breaks to restore budget discipline, CEDA warns ahead of election

An independent economic think tank is urging the federal government to do the politically unthinkable and rein in what it sees as unsustainable tax breaks just out from the May election.

The Committee for Economic Development of Australia (CEDA) says tough decisions need to be made about controversial refundable franking credits, work related expenses and capital gains tax to ensure the anticipated budget surplus is long term instead of a one off. 

In the case of the tax credits that Labor wants to abolish, CEDA says the cost to the budget has ballooned from $550 million when the break was first introduced to $5 billion dollars today, mostly to individuals with big investment portfolios. 

CEDA chief executive Melinda Cilento speaks with ABC's Peter Ryan.

Thursday, March 7, 2019

Incoming NAB chairman Phil Chronican bracing for possible prosecutions from Royal Commission

Newly-appointed NAB chairman Phil Chronican assumes that the National Australia Bank is among institutions being investigated by regulators for possible civil or criminal prosecutions stemming from the banking Royal Commission. 

In his first broadcast interview since being appointed, Mr Chronican said he fully expects "other issues" to emerge this year. 

Phil Chronican tells ABC's Peter Ryan that alleged multi-million dollar fraud being investigated at the NAB is "exceptionally disappointing" but that the bank needed stronger internal measures to prevent it. 

Cooling economy, rising jobless to prompt two interest rate cuts this year: Westpac chief economist Bill Evans

Westpac chief economist Bill Evans says a cooling economy and a rising unemployment rate will force the Reserve Bank to cut interest rates twice this year. 

Mr Evans, who rightly predicted the RBA's last rate cutting cycle in 2011, believes the central bank will once again downgrade its forecasts for three percent growth in 2019. 

However, Bill Evans tells ABC's Peter Ryan that despite the slowing growth, a recession is not inevitable.

Wednesday, March 6, 2019

Economy slows as subdued consumers and real estate investors hold back. Income recession we had to have?

The Australian economy grew at its slowest pace in more than 18 months, rising just 0.2 per cent in the December quarter and 2.3 per cent over the year. 

The ABS says household spending is subdued with dwelling investment falling by 3.4 per cent. 

ABC's Peter Ryan says although the Reserve Bank says rates are on hold, some market economists believe there will be two rate cuts this year as the jobless rate rises.

Economy tipped to slow as forecasters punt on RBA rate cut

Growth figures for the final three months of 2018 are tipped to show Australia's world beating economy is slowing. 

Market economists have downgraded their growth forecasts in the expectation that rising unemployment would force the Reserve Bank to cut interest rates. 

But BIS Oxford Economics chief economist Sarah Hunter tells ABC's Peter Ryan she is alert but not alarmed.

Tuesday, March 5, 2019

Land of fair go at risk as inequality worsens, ACTU secretary Sally McManus warns

Anemic wages growth, a widening gap between rich and poor and a "powerful elite" of banks, insurers and multinationals the main winners from 27 years without a recession.

That's the warning from the ACTU which is warning the policies of the Morrison government could result in an American style economy of dead end jobs, poverty pay levels and zero job security. 

ACTU secretary Sally McManus tells ABC's Peter Ryan that living standards in Australia are at thirty year low and could fall even further.

Monday, March 4, 2019

Australia's youth unemployment crisis in regions and suburbs


Source: Brotherhood of St Laurence based on ABS data



Official figures confirm Australia's national jobless rate is sitting at five percent. 

While Scott Morrison will be spruiking jobs growth in the leadup to the election, the youth unemployment rate is as high as 25 percent in part of regional Australia.

The Brotherhood of St Lawrence has crunched the numbers to identify the twenty worst hotspots where young Australians struggle to find a job. 

Brotherhood of St Laurence executive director Conny Lenneberg speaks with ABC's Peter Ryan.