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2012_0217 Greece - Oz productivity

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Labor’s policy confusion. Luke Malpass We constantly hear how the Labor Party and the Liberal-National Coalition are broad churches.

Labor’s policy confusion

Income testing the private health insurance rebate. This topic might seem a little leftfield for a tax column, but I will explain.

Income testing the private health insurance rebate

The legislation to apply an income test to the 30% private health insurance rebate has passed the House of Representatives and is expected to pass the Senate when it resumes on February 27, 2012. The income test will start from July 1, 2012. Obviously not all SME owners will be affected, but for those that are, they need to understand that their taxable income, any fringe benefits and superannuation come into the calculation of the income test. I will explain this below. The legislation gives effect to 2009 Federal Budget announcements concerning the private health insurance rebate and consequential Medicare Levy Surcharge changes. To achieve the means testing, the legislation proposes to introduce three new "Private health incentive tiers" with effect from July 1, 2012. Switch of seats a first for Sinodinos. Super system under ideological attack. Strong dollar a local nightmare. Drop in Australian employment rate surprises analysts.

Australian unemployment posted a surprise drop to 5.1 percent yesterday, with 46,300 jobs created last month — quadruple forecasts at a time when banks and airline Qantas have announced layoffs.

Drop in Australian employment rate surprises analysts

The Australian Bureau of Statistics said both part-time and full-time employment increased last month, driving unemployment down 0.1 percentage points to a seasonally adjusted 5.1 percent. The Australian dollar soared to US$1.0738 from US$1.0681 on the upbeat result, which significantly overshot analyst forecasts of 10,000 new jobs and unemployment of 5.3 percent. It came as national airline Qantas unveiled at least 500 job cuts yesterday on an 83 percent plunge in first-half profits. Jobless rate in surprise drop. Jobless rate drops A surprise drop on jobless figures boosts the dollar and scuppers hopes of interest rates relief. 16, 2012 Update Australia's unemployment rate unexpectedly dropped in January, sending the dollar jumping as the chances of another interest rate cut receded.

Jobless rate in surprise drop

‘High-cost, low-productivity nation’ Unhappy with the adversarial IR system . . .

‘High-cost, low-productivity nation’

Productivity hinges on leadership. Chris Styles Workplace Relations Minister Bill Shorten’s call for managers to do more to improve employee engagement shines the light on the productivity debate on the quality of management and leadership in Australia.

Productivity hinges on leadership

Is he right and what should be done about it? First, there is no doubt that Australia’s productivity is not at the level it should be, particularly when compared with other Organisation for Economic Co-operation and Development countries. The 2009 report Management Matters – How productive are we? ANZ to cut 1000 jobs. ANZ won't rule out more job cuts Despite slashing 1000 jobs and raising mortgage rates to protect profit margins, ANZ Australia CEO Philip Chronican says there could be more pain. 13, 2012 ANZ bank will cut about 1000 jobs by September 30 as the bank shrinks its Australian workforce to adjust to weak demand for financial services.

ANZ to cut 1000 jobs

SHORTEN Big four should remember who backed them in... Productivity: Shorten takes the long view. THE DISTILLERY: CBA acclaim. Australian banks. ANZ's cash profit is a bit better than the market expected.

Australian banks

Photo: AFP Update ANZ has completed the quartet of Australian banks to post big profits in the past week even as funding costs rise and the companies look to trim expenses including staff. ANZ's market update today shows the bank earned an unaudited $1.48 billion record cash profit in the December quarter, up 5.7 per cent from a year earlier. The result compared with analysts' expectations of about $1.44 billion, and was boosted by a $55 million drop in the bank's provisions for bad debts.

ANZ shares ended the day up 35 cents, or 1.7 per cent, at $21.55, the best performer among the major banks. The bank's chief executive officer Mike Smith defended ANZ’s recent decision to become the first bank to push through an interest rate rise independently of the Reserve Bank, and to reveal plans to cut 1000 staff by September. Westpac posts $1.5b quarterly profit. Qantas loses jobs and profit, Westpac just the jobs Qantas will axe 500 jobs following a profits slump, while Westpac has dropped jobs but announced a quarterly profit of $1.5 billion. 16, 2012 Westpac shares have fallen more than 4 per cent after the banks said its first-quarter cash profit came in at $1.5 billion, lower than expected by analysts.

Westpac posts $1.5b quarterly profit

Cash profit falls, missing market estimatesImpairment charges total $300 millionMarkets-related income drops $200 millionCEO Gail Kelly says conditions 'more challenging'CBA chief warns rates will go higherBanks pick paymasters over customers: VerrenderEarnings spotlight: all the major companies. CBA results ROE etc  - CBA chief hits back at Swan...

Narev’s nerveless narrative. SMEs lose as banks ‘educate’ expectations. Monwealth Bank raises mortgage rate by 10bp. Investors pressured NAB chief on rates. Scrap the big four’s ‘protected species’ status. Mark Bouris and Christopher Joye With four big banks that have a combined market captilalisation of about $250 billion, and control 80 to 90 per cent of all Australian financial transactions, and dominate the planning and funds management industries, it’s understandable they attract attention.

Scrap the big four’s ‘protected species’ status

But don’t blame the bankers. By choosing to pass on their costs to the 5 million families who have home loans, and to millions of small business borrowers, rather than absorbing these costs themselves, they are simply doing what all good oligopolists do: exploiting market power. They are aiming to preserve world-beating, double-digit returns on equity for the benefit of themselves and their shareholders. That’s rational. Credit union holds out against rate rise. Urging mortgage holders to shop around ...

Treasurer, Wayne Swan. AUSTRALIA'S largest credit union, CUA, has joined the Bank of Queensland in refusing to follow the big four banks in lifting mortgage rates. The decision opens up a wide gap between its standard variable mortgage rate of 6.72 per cent and the most expensive rate charged by Westpac, of 7.46 per cent. Leighton's Iraq scandal should prove a warning on overseas operations. Warren Buffett: Why stocks beat gold and bonds. Buffett Says Bonds Among Most Dangerous Assets on Inflation. Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., said low interest rates and inflation should dissuade investors from buying bonds and other holdings tied to currencies.

Buffett warns that 'gold bubble' will burst just like property did - Stocks & Markets, Business. Charlie Weston Personal Finance Editor – Updated 01 December 2012 06:50 PM. Warren Buffett’s latest stock moves. Warren Buffett recently said that stocks will outperform gold and bonds, calling them the safest asset by far. Read Warren Buffett 2011 letter (OLD) WSJ. Qantas profit dips 83% amid strikes and high fuel costs. 16 February 2012Last updated at 01:27. Qantas's loss could be Air NZ's gain. Published: 9:55AM Friday February 17, 2012 Source: ONE News. Customers jettisoned as another airline crashes and burns. Greece votes in favour of austerity plan.

Updated Mon 13 Feb 2012, 8:08pm AEDT Greek MPs voted to accept a joint European Union-IMF bailout deal this morning, as violent protests raged in the streets of Athens. In a special late night sitting of parliament, MPs accepted the tough austerity measures needed to secure the 130 billion euro ($170 billion) bailout package and avert a bankruptcy which prime minister Lucas Papademos likened to an economic and political "ground zero". Athens burns as protesters run riot ahead of $160 billion bailout vote. ATHENS SUNDAY NIGHT (1200×570) Greek debt. Germany’s hard line pushes euro zone to the edge.

RBA 'kept BankWest alive'