Game-changers: Economic reform priorities for Australia - Grattan Institute. Overall look at tax reform is vital. Roger Beale We are in the middle of what many in the business community see as the wrong tax debate. Business is being asked to relinquish important depreciation and research and development tax concessions and face harsher thin capitalisation rules to fund a small reduction in overall business tax rates. Many see this as a zero sum game and the gains for the community through growth are likely small.
Australia has enjoyed strong real per capita income growth over the past 20 years but that level of growth is at risk in the decade ahead. Australia holds an enviable position as one of the few OECD nations with a strong government credit rating and low debt across all levels of government. That too is at risk. In the 1990s our income growth reflected large productivity gains as the fruits of economic reforms over the years from 1983 were reaped. In the 2000s we have done as well but off the back of a boom in the terms of trade – the ratio of the price of our exports to our imports. Miners should pay a premium.
Richard Denniss Listening to the mining industry complaining about the high exchange rate is like listening to a three-year-old complaining about the noise of their own tantrum. It simply adds insult to injury. The surge in world demand for our resources and the flood of foreign money into Australia to buy or build mining assets has been a major driver of the 43 per cent surge in the exchange rate from $US0.736 in 2004 to $US1.056 now. As the Australian dollar hit the $US0.80 mark the strain on other exporting sectors began to show, particularly in manufacturing, tourism and agriculture. ABS statistics show the steady decline in employment in manufacturing from 1,051,100 in 2004 to 962,100 today. For the first time in decades manufacturing employment is consistently below one million. But, we were told, don’t worry about it.
But neoclassical economics is a fickle friend. Similarly, as the exchange rate has risen the export competitiveness of the mining sector has been reduced. QE3 – it’s the feel-good factor. RATE falls will spur innovation PIMCO. The man behind Mad Men Mad Men creator Matthew Weiner is the slightest bit touchy about his reputation as a control freak. Personal data held by ACCC leaked Australia’s competition regulator has been hit with an embarrassing security lapse after its confidential email subscriber list was leaked online.
How Millennial are you? Take Pew Research’s quiz to determine on a scale of 0 to 100 your generation and whether you’re more Millennial than you think. US quantitative easing a point of interest for RBA - The Drum Opinion. Find More Stories US quantitative easing a point of interest for RBA Greg Jericho Last week the US Federal Reserve made an announcement that not only has consequences for Australia, but also might be the first time a blogger has influenced monetary policy. On Friday, the Chairman of the US Federal Reserve announced "Quantitative Easing 3" (or QE3). The reason it is done is the theory that nominal GDP is equal to the supply of money times the velocity of money (i.e. the speed at which money circulates through the system).
What this means in real life is that if there's more money in the economy, hopefully consumers and businesses will spend more. This theory isn't new - in fact John Maynard Keynes back in the 1930s was taking pot shots at it - and as we can gauge from the name, quantitative easing has been tried in the USA twice before. The big difference this time is that QE3, unlike the first two, is open ended. Nominal GDP growth is real GDP growth plus inflation. Email Share x del.icio.us Digg. RBA’s levers work well – Debelle.
RBA who's buying AUD. The man behind Mad Men Mad Men creator Matthew Weiner is the slightest bit touchy about his reputation as a control freak. Personal data held by ACCC leaked Australia’s competition regulator has been hit with an embarrassing security lapse after its confidential email subscriber list was leaked online. How Millennial are you? Take Pew Research’s quiz to determine on a scale of 0 to 100 your generation and whether you’re more Millennial than you think. ‘Brace for falling living standards’ Professor Ross Garnaut and Dr Martin Parkinson at Wednesday’s International Monetary Fund conference. Photo: Sean Davey Jacob Greber, Sophie Morris and Joanna Heath Ross Garnaut, the Hawke government economist who predicted the rise of China, has warned Australians to prepare for a living standards bust as the resources boom gives way to falling export prices and a slump in mines development.
“I think we’re going to have a very difficult time adapting to the decline in living standards that’s going to be a necessary part of the adjustment to the end of phase one and two of the boom,” he told a conference on the rise of Asia. Professor Garnaut’s warning that the looming economic adjustment would be more painful because governments had not saved enough of the resources boom in budget surpluses came as international ratings agency Standard & Poor’s reaffirmed Australia’s AAA sovereign rating assuming budget cuts continue. “Because boom implies there’s a bust,” he said. Big four 'exposed' to Chinese slowdown. Tree of life Jamie Walker A LITTLE red berry that no animal will eat could provide a new weapon against cancer. The colour of money SHARON VERGHIS AS government funding for the arts dries up, big business is increasingly plugging the gap, but that can be an ethical and political minefield.
Hell of a ride TRENT DALTON AN elderly, half-blind man is attacked by two women on a bus as passengers look on. Eternal dreams first watch: GRAEME BLUNDELL A NEW drama takes a gentle look at the hopes, aspirations, triumphs and tragedies of an indigenous family in a NSW town. Overall look at tax reform is vital. Miners should pay a premium. Listening to the mining industry complaining about the high exchange rate is like listening to a three-year-old complaining about the noise of their own tantrum.
It simply adds insult to injury. The surge in world demand for our resources and the flood of foreign money into Australia to buy or build mining assets has been a major driver of the 43 per cent surge in the exchange rate from $US0.736 in 2004 to $US1.056 now. As the Australian dollar hit the $US0.80 mark the strain on other exporting sectors began to show, particularly in manufacturing, tourism and agriculture. ABS statistics show the steady decline in employment in manufacturing from 1,051,100 in 2004 to 962,100 today. For the first time in decades manufacturing employment is consistently below one million.
But, we were told, don’t worry about it. The mining industry, the Treasury and both major political parties argued the orthodox textbook line that the rise and rise of the mining boom was simply a good thing. IMF warns house prices pose big risk for banks. Amid risks, IMF backs budget surplus. IMF deputy director for Asia-Pacific Masahiko Takeda says Australia has left itself vulnerable to external shocks through its dependence on the mining sector for growth. Photo: Michele Mossop Joanna Heath and Jacob Greber The International Monetary Fund has given a strong tick of approval to the Gillard government’s budget surplus target, but warns that any collapse in China would send Australia’s housing market into a tailspin. The Washington-based fund said the present level of official interest rates and fiscal policy settings were “appropriate” and had given Australia the flexibility to take action if the global economy collapsed.
“With expected inflation within the target range, the strong Australian dollar, and given efforts to return the budget to surplus this year, monetary policy should remain accommodative, and should act as the first line of defence against near-term adverse shocks,” the fund said in its latest Article IV consultation. “It’s a judgment call.” Stock surges but analysts say Fortescue debt deal a short-term fix.
Fortescue Debt Analysis. Mal Maiden: DJ's down, Fortescue up David Jones has announced a 40% drop in earnings whilst Andrew Forrest has bought Fortescue some time. BusinessDay columnist Malcolm Maiden analyses the latest business news. P 19, 2012 Fortescue has solved its debt problem with - wait for it - more debt and, equally worrying, its iron ore price expectations for next year are now out of kilter with those of the federal government. Fortescue's thumping $US4.5 billion refinancing deal was well received yesterday and the company's shares were up again this morning, rising another 17 cents, or 4.9 per cent, to $3.67 in late morning trade.
It's going to be a nervous wait for Fortescue until that rebound (in iron ore prices) kicks in strongly CBA analyst Matthew Hodge wrote that Fortescue had "dodged a large bullet with a miraculous line of new debt". But the increase in Fortescue's borrowing capacity carries plenty of risk. Costs blowout makes LNG no sure thing.
Suncorp Hybrid raising. The man behind Mad Men Mad Men creator Matthew Weiner is the slightest bit touchy about his reputation as a control freak. Personal data held by ACCC leaked Australia’s competition regulator has been hit with an embarrassing security lapse after its confidential email subscriber list was leaked online. How Millennial are you? Take Pew Research’s quiz to determine on a scale of 0 to 100 your generation and whether you’re more Millennial than you think. NAB to make muscle felt in online share trading. Court shields APRA in NAB class action. Westpac presses the wealth button. MLC aims at safety first for retirees. Australians can now expect to spend 25 years in retirement, so they need exposure to growth assets.
Photo: Leanne Hartley Leng Yeow National Australia Bank’s wealth management business, MLC, will unveil its new suite of capital-protected retirement solutions later this week, targeting Australia’s growing number of retirees. MLC Masterkey Investment Protection will compete head-on with AMP’s North platform, which was the sticking point in NAB’s unsuccessful battle with AMP last year for control of AXA Asia Pacific.
It offers two forms of protection; protected capital and protected income, and is targeted at people either in, or approaching, retirement with superannuation assets of between $30,000 and $2 million. According to Barnett, consumer demand for capital-guaranteed solutions is high, with investors prioritising safety and peace of mind in the midst of ongoing volatility in equity markets. It was second only to Axa’s Charter Financial Planning with $435 million. Tax office survey reveals SMSF growth spurt. DIY super John Wasiliev Do-it-yourself superannuation funds are attracting support in an impressive fashion, with new funds being set up at an average rate of 3000 a month over the past financial year, making it the second most active year since 1995.
According to the latest Australian Taxation Office quarterly survey of DIY funds, nearly 7200 funds were established during in the June quarter, raising the total for the 2011-12 financial year to 36,270. Only the explosive 2006-07 financial year, when nearly 45,700 new funds were created at an average rate of 3800 a month, was busier. This particular growth spurt accompanied the Howard government’s super changes with its contribution limits and tax free pensions for the over 60s.
The 2006-07 financial year was notable for the fact that as many DIY funds were established during June quarter that year – about 19,800 – as there were during all of 2005-06. So what’s behind the latest surge? More advisers are skilling up on DIY super, he says. ANZ slams the brakes on Hong Kong acquisition.
Former franchisees sue BoQ over losses. IAG clears up $NZ3.5m claims error. The insurer discovered an error in its modelling after the surge in claims from the Christchurch earthquakes. Photo: Don Scott Ruth Liew Insurance Australia Group will fork out $NZ3.48 million ($2.74 million) to compensate New Zealand policyholders after their claims were underpaid due to inflation adjustment errors. The Commerce Commission in New Zealand reached a settlement with IAG’s New Zealand arm after the company admitted it “may have breached the Fair Trading Act” across more than 150,000 policies, the commission said.
IAG raised the alarm with the regulator in October last year after uncovering the problem in August while assessing the impacts of the Canterbury earthquakes. The problem can be traced back to a systems error that incorrectly calculated annual inflation adjustments which apply to the sums insured on certain home and contents policies. The missed calculation affected covers offered by NZI, Lantern, ASB, BNZ and Co-operative Bank. iSelect seeks funding in return for IPO schedule. How 3D printing is revolutionising guitar-making | Technology. Guitarists of the Pete Townshend school wouldn't be impressed, but their managers would be.
The Who's pioneering instrument-smasher could find he's met his match with one of the bespoke nylon-bodied guitars made by Olaf Diegel, professor of mechatronics at Massey University in Auckland, New Zealand. "You could throw one against the wall without worrying about it breaking," said Diegel, who will begin selling the guitars online at the end of June. Their robustness might be music to a band manager's ears. But perhaps more notable is how Diegel makes the instruments, which are attracting interest from around the world. Diegel is an exponent of 3D printing. "The old style of [subtractive] manufacturing is you start with a block and cut away the material you don't need. The process is a little like inkjet printing, but instead of ink squirting out of the print head, successive layers of plastic or metal powder are deposited according to the CAD file's instructions.
Boost for BlueGen as power home generator wins concession. Can smart grids pay their way? On cusp of another wave of computing innovation. The rise of additive manufacturing | In-depth. Collaborative manufacturing: All together now. The current and future economics of 3D printing and factory production - companies like Zara that leverage new capabilities for new business models. Austechexpo.com Austech - Australia’s premier advanced precision manufacturing and machine tool exhibition.
Changing manufacturing layer by layer. Future Manufacturing National Research Flagship: manufacturing a cleaner future. The next big thing: additive manufacturing | PlasticsToday.com. 3D printing revolutionises manufacturing - The Business. Local firm leads with 3D manufacturing. Solution to fading boom.