Archived News for Finance Sector Professionals

The Westpac Melbourne Institute Index of Consumer Sentiment recorded an 8.1 per cent increase in September, marking an increase from 89.6 in August to 96.9 in September.

Westpac’s Chief Economist, Bill Evans, described the increase as a “surprisingly strong result”, but added that global economic uncertainty meant that the bank was no long considering raising its interest rates.

Concrete evidence of the improved outlook for interest rates came shortly after the August survey when the major banks actually lowered their fixed rate mortgage rates. While possibly coming as a surprise this action would have comforted anxious households,” Mr Evans said.

Independent urges tax reform

Federal Independent Tony Windsor has suggested the Federal Government increase GST by 1 per cent to allow for the removal of 115 inefficient taxes.

Carbon tax legislation goes before Parliament

Prime Minister Julia Gillard has introduced the Federal Government’s carbon tax legislation to Parliament, saying that the legislation will lead to reducing the country’s carbon production while stimulating the economy and creating jobs.

Banking insurance drops

The Federal Government has announced plans to permanently lower the level of insurance it will offer from $1 million to $250,000.

AMP ups protest votes

Fund manager AMP Capital has increased the number of executive remuneration protest votes by 25 per cent over the last year, but has announced it believes it will not likely cause board spills under the two-strikes rule.

QIC searching for new CEO

Institutional investment manager QIC has announced its long serving CEO Dr Doug McTaggart will depart the company as of 30 June 2012 after 14 years at the helm of the company.

Inspector-General releases report into ATO's large business practice

The Inspector-General has released the Report into the Australian Taxation Office's large business risk review and audit policies, procedures and practices.

Decrease in current account deficit

Latest ABS figures show that in seasonally adjusted, current price terms, the current account deficit fell $3,696m (33%) to $7,419m in the June quarter 2011. Exports of goods and services increased $5,837m (8%) and imports of goods and services increased $2,985m (4%). The primary income deficit fell $870m (7%).

In seasonally adjusted chain volume terms, the net goods and services deficit rose $1,643m (19%) to $10,224m in the June quarter 2011. This is expected to detract 0.5 percentage points from growth in the June quarter 2011 volume measure of Gross Domestic Product.

Australia's net international investment position decreased $1.2b to a net liability position of $781.1b in the June quarter 2011. Australia's net foreign equity liability decreased $1.6b to a liability position of $106.1b. Australia's net foreign debt liability increased $0.4b to a liability position of $675.0b.

Further details can be found in Balance of Payments and International Investment Position, Australia.

Australian economy grows 1.2%

Latest ABS figures show that GDP, in seasonally adjusted volume terms, grew 1.2% in the June quarter 2011, after a revised fall of 0.9% in the March quarter. Growth for the 2010-11 financial year is 1.8%.

The growth for the quarter was driven by a 0.8% contribution to growth from changes in inventories and a 0.7% contribution from final consumption expenditure. These increases were partially offset by a -0.5% contribution from net exports.

On the back of this GDP growth and a 5.4% increase in the Terms of Trade, Real gross domestic income grew 2.6% for the quarter. The Terms of Trade has more than doubled over the past decade, rising from an index number of 60.5 in the June quarter 2001 to 122.6 in June quarter 2011. Real gross domestic income grew 6.5% in the 2010-11 financial year, the largest growth since 1987-88.

Further details can be found in Australian National Accounts: National Income, expenditure and Product

Findings contradict government's mining tax stance

A report commissioned by the mining industry and published Deloitte Access Group shows that mining companies are paying slightly more tax as a percentage of their income compared to the same time three years ago.

Finance executive demand healthy amid weakening job market

International executive search specialists E.L Consult has published its E.L Executive Demand index, finding that executives should expect to face a continuing weakening job market for the remainder of 2011.

ATO oversight office slammed

A planned advisory board to oversee the operations of the Australian Taxation Office (ATO) has been slammed as being pointless and unnecessary by a senior ATO official.

Rio poaches ex-BHP executive to board

Mining giant Rio Tinto has announced that former BHP Billiton CFO Chris Lynch will be appointed to the company's board.

Tax forum details released

The Federal Government has announced the invitation list, program and facilitators for the Tax Forum to be held in Canberra on 4 and 5 October.

Federal Government releases petroleum rent tax draft

Treasury has released an exposure draft legislation for the extension of the Petroleum Resource Rent Tax (PRRT) for public comment.

Federal Government launches financial services map

The Federal Government has launched an online mapping service to assist people in financial difficulty find their nearest financial counsellor.

Financial university on hold in Adelaide

Difficulties navigating the quagmire of educational bureaucratic red tape has been cited as the main contributing factor to KAPLAN, the education arm of the Washington Post, deciding to pull out from its plans to establish a university specialising in financial services education in Adelaide.