Archived News for Finance Sector Professionals - September, 2011
The Federal Government has released the 2010-11 Final Budget Outcome, finding that the global financial downturn had wiped $40 billion off the forecasted growth rates.
“While Australia avoided recession, the global financial crisis still cut around $130 billion from government revenues as the economy slowed markedly and businesses accumulated substantial income and capital losses that continue to be offset against tax liabilities,” Treasurer Wayne Swan said.
The Australian Government general government sector recorded an underlying cash deficit of 3.4 per cent of GDP ($47.7 billion) for 2010-11.
Suggested tax deductions to ease pressure on families
Australian female executives have pushed for the government to make childcare and nanny services tax deductable enabling women to be available for employment and those already at work could have more opportunities for promotion.
October Forum to consider GST increase
The October Tax Forum, convening next week, will consider increasing the base rate of GST charges.
Exporters supported by banks
Bank of America Merrill Lynch and the Export Finance and Insurance Corporation (EFIC) have helped Australian businesses protect their export contract payments by signing a Master Documentary Credit Guarantee Facility.
ATO reunites fund members with lost super
The Australian Taxation Office (ATO) has developed an electronic form to make it easier to connect account holders with 5.8 million lost super accounts worth more than $18.8 billion.
Federal Government releases Tax Forum papers
The Federal Government has released two discussion papers in the lead up to the October Tax Forum.
SA keeps AAA rating
The South Australian State Government has welcomed the decision by rating agency Standard & Poor to maintain the state’s AAA credit rating.
ABS to update the CPI basket
The September quarter 2011 issue of the Australian Consumer Price Index to be released 26 October 2011, will incorporate several key recommendations from the Outcome of the 16th Series Australian Consumer Price Index Review by the Australian Bureau of Statistics (ABS). The changes are described in an information paper: Introduction of the 16th Series Australian Consumer Price Index released today by the Bureau.
The main outcome will be to update the household expenditure weights applied to the different goods and services in the CPI basket to reflect current patterns of household expenditure. A comparison between the previous household expenditure weights (June quarter 2005) and the new household expenditure weights (June quarter 2011) is included in Appendix 3 of the release. For example, household expenditure is now relatively higher on restaurant meals and lower on beef and veal.
Previously published headline CPI (All groups CPI) will not be revised as a result of the changes. The All groups CPI for the June quarter 2011 was 0.9% for the quarter, and 3.6% through the year.
The CPI has been reviewed 16 times since its introduction in 1960; these reviews make sure that the CPI basket remains relevant to Australian purchasing patterns.
The information paper presents the new CPI expenditure weights which will be used from the September quarter 2011, details the methods used in deriving the weights and highlights major shifts in weights.
The ABS produces, together with the quarterly headline CPI, a suite of related indexes that help users understand the pattern of inflationary pressures in the Australian economy. The information paper describes the composition of these series. Following the recommendation of the 2010 Review, the ABS has decided to remove the indirect charges for deposit and loan facilities from the headline CPI pending improvements to the methodology and underlying data sources. In the meantime a new analytical series will be produced - the All groups CPI including Deposit and loans (indirect charges).
The information paper also provides a mock–up of the revised format of the September quarter 2011 publication and downloadable spreadsheets to enable users to become familiar with them before the release date.
Treasurer announces G20 and IMF meetings
Federal Treasuer Wayne Swan has met with G20 Finance Ministers in Washington DC before attending annual IMF and World Bank meetings.
Guarantee to build access to working capital
HSBC Bank Australia and Export Finance and Insurance Corporation (EFIC) have announced the signing of a new Master Working capital Guarantee Facility with an aim to assist Australian exporters in gaining access to additional working capital to finance export contracts.
Westpac appoints Ann Pickard to board
Westpac has announced that Ann Pickard will take a senior independent non-executive Director at the company’s board. Ms Pickard’s appointment will take effect from the beginning of December.
New appointments at Suncorp
Sean Carroll has officially been appointed as executive general manager of Suncorp Life Risk Australia after settling into the role for five months.
Swan recognised as finance minister of the year
Euromoney has named Treasurer Wayne Swan finance minister of the year due to his strict handling of the economy through and beyond the financial crisis, becoming the second Australian to have ever won the prestigious award.
Treasury announces superannuation law amendments
The Federal Government has revealed amendments to superannuation laws which are set to provide people with low cost, commission-free funds under the MySuper schemes.
Federal Government releases carbon tax update
The Federal Government has released an updated model of the impact of the carbon price which states the Australian economy will continue to grow strongly at the same time making reductions in carbon emissions.
IMF praises Australia's position
The IMF’s September World Economic Outlook (WEO) expects Australia to grow faster than all major advanced economies next year with an expected growth of 3.3 per cent. Predicted growth for advanced economies as a whole is 1.9 per cent in 2012 due to increased global instability.
ANZ Wealth appoints new Sales Head
ANZ Wealth has appointed a new head of sales, former BT executive Don Sillar.
HSBC enters property market
HSBC has introduced its Homeloanwork service, the bank’s first mortgage website dedicated to home loan refinancing.
Second MRRT exposure draft released
The Federal Government has released the second exposure draft legislation for the Minerals Resources Rent Tax (MRRT).
Recovery on track despite global uncertainty
Australia’s economic recovery is on track despite growing global uncertainty surrounding mounting sovereign debt in Europe and a stagnate US economy according to a report published by global rating agency Standard & Poor.
ANZ to capitalise on volatility
ANZ’s chief executive has announced the company will be looking to expand its holdings in the Asia Pacific region as international banks sell assets to stabilise their capital bases.