It's time for NAB chief Clyne to make hay. Unemployment drops as job seekers give up. Updated Thu 10 May 2012, 8:09pm AEST Australia's unemployment rate dropped to a 12-month low of 4.9 per cent last month in a surprise result as people gave up looking for work. The latest figures from the Australian Bureau of Statistics show a total of 15,500 jobs were created in April on a seasonally-adjusted basis, driven by a jump in part-time work. While 26,000 part-time positions were created in the month, 10,500 full-time jobs disappeared. Prime Minister Julia Gillard and Federal Minister for Employment Bill Shorten welcomed the result. "I am delighted that today's unemployment rate has fallen to 4.9 per cent in April, an achievement for the Australian nation so soon after the global financial crisis," Ms Gillard said.
Mr Shorten said the figures showed that more Australians were at work than ever before and highlighted the importance of the Government's confidence-building measures, such as bringing the budget back to surplus. At 5:35pm (AEST) it was worth 101.1 US cents. RBA Labour Supply. Bulletin – June Quarter 2011 Ellis Connolly, Kathryn Davis and Gareth Spence * The labour force has grown strongly since the mid 2000s due to both a rising participation rate and faster population growth.
The increase in participation has been greatest for females and older persons, driven by a range of social and economic factors. At the same time, average hours worked have declined as many of these additional workers are working part time. The rise in population growth has mostly reflected higher immigration, with a larger intake of skilled workers and students adding to the labour supply.
Introduction The labour force includes all employed persons and those actively looking for work, and has grown at an average annualised rate of 2½ per cent since 2005. Graph 1 Click to view larger Since 1980, the total participation rate has risen by 5 percentage points, from 61 to 66 per cent (Graph 2). Graph 2 Graph 3 Graph 4 Participation of Females Aged 25 to 54 Graph 5 Sources: HILDA Release 9.0; RBA.
Qantas fights for frequent flyers. Insurer Aviva's CEO quits after pay revolt. Insurer Aviva, which was hit last week by one of the biggest revolts over executive pay ever suffered by a British company, said today chief executive Andrew Moss had resigned from his position with immediate effect. "Andrew Moss will leave the board shortly and a further announcement will be made to confirm the financial terms of his departure and date of leaving," Aviva's chairman Lord Sharman said, adding Moss thought his departure was in the company's best interests.
Last week Moss waived his 2012 salary increase following shareholder concerns over executive pay, which culminated in half of the group's investors revolting on remuneration at its annual general meeting three days later. The group said chairman designate John McFarlane would take on his duties until a new chief executive was appointed. He will maintain an executive role while internal and external candidates are assessed for the CEO position, it added.
Advertisement Reuters. Slipper vacates Speaker's chair. Peter Slipper told parliament he denied the allegations and he was entitled to the presumption of innocence. Photo: Alex Ellinghausen Peter Slipper on Tuesday denied allegations against him but told parliament he would remain out of the Speaker’s chair while federal police investigate claims he misused taxi dockets. In a statement to parliament, Mr Slipper said his role would be filled by Deputy Speaker Anna Burke until the issues surrounding him were resolved. "I invite the deputy speaker to take the chair," he said. The Opposition later lost a motion to return former House of Representatives speaker Harry Jenkins to the chair, although the vote was tied 72-72 after independent Andrew Wilkie, Katter’s Australian Party’s Bob Katter and Nationals MP Tony Crook voted with the Coalition. Ms Burke was not required to make a casting vote because a successful motion needed an absolute majority of 76 votes.
“I am also entitled to have these matters dealt with by proper process.” Banks say they’ve got to pick a profit or two. NAB cost controls are a highlight. It’s Clyne’s strategy, he’s sticking to it. NAB solid, steady and all that jazz. CBA axes 100 jobs as loan demand drops. Winding back the banking clock. ANZ’s Smith signals full rate cut unlikely. NAB: so much for the ‘break-up’ For NAB, breaking up isn’t hard to do – it pays. Swan spruiks ‘fair go’ budget. Revenue might be down but Treasurer Wayne Swan says that won’t stop him from delivering a long-promised 2012-2013 budget surplus on Tuesday night. Photo: Penny Bradfield Will Glasgow, Alyssa McDonald, Claire Stewart, Lucille Keen, Michael Smith and Michaela Whitbourn Treasurer Wayne Swan unveiled a $1.5 billion 2012-13 budget surplus at 7.30pm AEST against the backdrop of fresh revelations in the Thomson affair and a shifting political landscape in Europe where voters have rejected austerity in two key elections.
Refresh regularly for the latest budget day updates. 10.15pm: The Australian Petroleum Production & Exploration Association chief executive David Byers says “the budget has identified growth in the resources sector, particularly of the Liquefied Natural Gas (LNG) industry, as the key driver of Australia’s economic prosperity in an uncertain global environment over coming years.” “The planned surplus should help the Reserve Bank find room to move further on interest rates.” Treasury does some digging to offer a mine of useful myth-busting. Fair share ... "The mining tax will add about $3billion a year to the budget bottom line. This helps, but miners will still be paying slightly less than their share. " Photo: Phil Hearne This week's budget contains some important myth-busting about Australia's mining boom, the biggest since the gold rush days.
It contains some extraordinary numbers. Did you know, for example, that the resource sector has an investment pipeline of $450 billion in the coming years? And while mining accounts for just 9 per cent of economic output, Treasury puts the combined output of mining and mining-related sectors at between 15 and 20 per cent. By contrast, the rest of the economy is expected to grow at a below-trend rate of just 2 per cent. Advertisement The Gillard government has sold this budget as ''spreading the benefits of the boom'', but it's fair to say most Australians' understanding of the boom is pretty shaky. On the one hand, miners complain they already pay a disproportionate amount of tax.
The Abbott Fact Check & Other Matters. The Leader of the Opposition Mr Abbott gave his response to the Budget a short while ago and while there were few facts relating to matters of the economy, there were a few assertions and judgments that should be put through the fact-check machine. The lack of any detail about how the aspirations would be paid for is another matter, but at a quick glance, here is what came out: ABBOTT: People who work hard and put money aside so they won’t be a burden on others should be encouraged, not hit with higher taxes. FACT: The tax to GDP ratio of the first 5 Labor Budgets averaged 21.1%. The lowest ever tax to GDP recorded under the Howard government was 22.2% and the average was 23.4%. The last time a Coalition Government delivered a tax to GDP ratio below 21.1% was in 1979-80. Cannot see where the “hit with higher taxes” statement fits these facts in the current Budget context.
FACT: Average annual earnings are around $53,500 in NSW and $51,500 in Victoria. Federal Budget 2012. See the latest 2013 Federal Budget news and insights The Federal Budget creates opportunities. Understanding how it can impact you and your business is challenging. Our team of leading economists have broken it down by industry to help you understand what it means for you and your business, and how you can get all your ducks in a row in the lead up to 30 June 2012.
Federal Budget Overview This is an overview of the federal budget, including winners and losers by industry, our latest economic and investment markets outlook and ways we can help you take advantage of opportunities before 30 June.Federal Budget 2012 Overview (PDF, 444KB) What the Federal Budget means for Business Big business is the major loser in this Budget with a previous promise to cut company taxes, back by revenue from the minerals resource rent tax, scrapped and the money diverted to increased payments to households. What the Federal Budget means for Small Business What the Federal Budget means for Agribusiness. S&P confirms Australia has no private debt. Elusive quest to capture market mood. If a company is getting a lot of mentions in the media it raises a red flag that something significant has probably changed and the algorithm should stop trading on its previous assumptions. Illustration: Karl Hilzinger Stephen Shore James Curran at the University of Sydney is working in conjunction with the Capital Markets Co-operative Research Centre to try to clean up the sentiment signal.
Photo: supplied by University of Sydney Accurate analysis of market sentiment might be the holy grail of investing. Imagine, then, if each time a company updated the market you could determine instantly whether that announcement was positive or negative and trade on it automatically. At its most basic, high-frequency traders scan documents to work out whether they should exclude a stock from their models. There are several problems with this approach.
The computers also struggle to read context accurately. One of the biggest challenges is that names are ambiguous. Federal Budget 2012-13 :: Colonial First State. What you need to know Federal Treasurer Wayne Swan has handed down his fifth Budget promising to deliver a surplus of $1.5 billion in 2012-13. This will be the first surplus since Labor came to power in 2007. The fiscally conservative Budget will save $33.6 billion by reducing spending across almost every Government department and portfolio. We take a look at how the changes to superannuation, taxation and social security benefits may affect you. Click on the following subheading to take you to the relevant section. Superannuation Higher tax on concessional contributions for very high income earners From 1 July 2012, the Government proposes that individuals with income greater than $300,000 will have the tax on non-excessive concessional contributions increased from 15% to 30%.
Individuals on the highest marginal tax rate who will not be subject to additional tax on super contributions are those on incomes between $180,000 and $299,999. Effect of reduced concessional caps top Taxation Family. Swan’s epic budget task faces economic reality. Infographic: Budget forecasts versus reality - Federal Budget 2012. Promised surplus likely to be a deficit. Swan's dangerous debt game | Rob Burgess. FEDERAL BUDGET 2012: Wayne Swan and Henry who? | Alan Kohler. Trade deficit widens for March. Australia's trade deficit widened in March, the Australian Bureau of Statistics (ABS) said on Tuesday. The balance on goods and services was a deficit of $1.59 billion in March, seasonally adjusted, compared with an upwardly revised deficit of $754 million in February.
Economists' forecasts had centred on a deficit of $1.2 billion in March. During March, exports were up 2.0 per cent in adjusted terms while imports were up 5.0 per cent, the ABS said on Tuesday. Commonwealth Bank senior economist John Peters said flooding across eastern states during the summer months and industrial action at central Queensland mines had affected the supply of coal during the month. “We’re seeing some negative impact from that which is holding back exports,” he said. He said the high value of the Australian dollar and the importing of capital goods from overseas to service the boom in mining investment had lifted imports.
Revenue rides its own mining boom and bust. Budget driven by political necessity: Howard. Swan won’t commit to company tax cut. Return of old-fashioned fiscal discipline. Treasurer Wayne Swan at the National Press Club in Canberra on Wednesday. Photo: Andrew Meares Alan Mitchell Economics editor Whatever its imperfections, the budget on Tuesday appears to have achieved one very important goal: it has reinstated the bipartisan medium-term fiscal strategy as the central plank of the Gillard government’s fiscal policy.
The strategy, which requires the budget to be in surplus over the medium term, will be a vital discipline on both major parties in the new era of revenue scarcity. It in effect condemns the government to maintain average real spending growth at no more than 2 per cent, while handing the task of steering the economy back to the Reserve Bank of Australia. Unfortunately, there is no guarantee that the government will be able to leave the task of managing demand entirely to the central bank. However, the nation’s politicians may find it difficult to adjust to the new, slower revenue growth. ahmitchell@fairfaxmedia.com.au.
Battlers and the big picture: budget's no game changer - The Drum Opinion - Clearly the sound-bite phrases of "fair go" and "battler's budget" imply what Swan wants us to think is the story, but do the cuts match it? Find More Stories Battlers and the big picture: budget's no game changer Greg Jericho Well Swan did it. He forecast a surplus. Before we look at some of the entrails, let's look at the big numbers. Tax revenue continued to decline in the 2011-12 year to the tune of $5.6 billion less that the Government expected to get six months ago. Of course this shifting around of money leads to the inevitable claims of cooking the books. All up the Government has transferred $1.9 billion of spending into the 2011-12 financial year.
Clearly the Government wanted politically to have the budget in surplus in the 2012-13 financial year. But one fact that can't be ignored is that this budget has for the first time in 40 years reduced the dollar amount of expenditure, and for only the fifth time in that period it has also reduced expenditure in real terms (ie taking into account inflation). Last night on Lateline , Opposition spokesman for finance Andrew Robb suggested: Actually Robb is wrong. Email Share x Digg. Super changes sabotage certainty: AMP. AMP said net cash outflows were $292 million in the first quarter ended March 31. Photo: Tamara Voninski Duncan Hughes Federal government “tinkering” with superannuation and tax is jeopardising the nation’s savings, the chiefs of AMP, the largest wealth manager, warn.
Chairman Peter Mason told the company’s annual general meeting constant government changes to super rules could “potentially mute its effectiveness” as a wealth builder for an ageing population and a buffer against future financial crises. AMP chief executive Craig Dunn told the meeting that continuous changes to super were “creating a cost burden” that could undermine consumer sentiment and confidence. “The more you change, the less certainty, confidence and preparedness there is to invest in the long term,” he said. He also warned that budget changes targeting foreign investors would weaken their confidence. Mr Mason warned that new capital standards would impose additional costs. Higher earners face contributions tax slug. The proposals are the latest signal that the government is intent on dismantling a raft of super reforms introduced by former treasurer Peter Costello.
Sally Patten Older taxpayers will be limited to injecting $25,000 annually into superannuation for at least two years and high income earners face a doubling of their contributions tax in a move that will curtail people’s ability to save for their retirement. The measures, introduced as the government raises the level of compulsory contributions from 9 per cent to 12 per cent over the next eight years, are part of a $3.3 billion slug on savers revealed in the budget. Treasurer Wayne Swan also said he would scrap a planned tax break on bank deposits. Meanwhile, super funds will be forced to pay $467.1 million to the Australian Prudential Regulation Authority over the next seven years to implement a set of reforms, including improvements to back office operations and the introduction of low-cost default funds.
AMP chair Mason says government is undermining super saving. Payment services break plastic mould. Bigger is better for mortgagees. Long wait for cheaper credit card rates. Smartphones ‘more secure’ than credit cards. Get ready to gear up for extra profit. Focus on filling Buffett’s shoes. History of future stability. Voters Agree on One Thing: Discontent. Hollande’s political honeymoon won’t last long. Hollande's troubling memo to Merkel | Karen Maley. Obama invites Hollande to White House. Greek voters reject euro zone austerity in. Resources hammered on EU uncertainty, US jobs. Nouriel Roubini's Global EconoMonitor » Get Ready for the Spanish Bailout. France simmers, Greece boils. France takes a left turn. Spain seizes Bankia as debt crisis escalates.