Proposed Workplace Reforms

LATEST AUSTRALIAN BUSINESS NEWS

In a comprehensive statement, a leading Australian business organisation – the Australian Industry Group (AIG) has stated that it is evident that the Federal Government is still developing its workplace relations reform package.

Workplace relations reforms is expected to be the major emphasis of the Australian Federal Government once it has control of both Houses of Parliament from 1 July.

AIG says that the Federal Workplace Relations Minister has set out publicly several times a number of reforms that the Government is currently considering:

• A package of measures, based on the Corporations Power, that will bring 85-90% of employees into the Federal workplace relations system;
• Options for the setting of the minimum wage;
• Significant changes designed to remove the complexity and third party interference with agreement making and to simplify the process;
• A series of changes to the role of the Australian Industrial Relations Commission (AIRC), including increased use of mediation;
• Changes focused on further simplifying awards, whilst continuing their role as a genuine safety net of minimum terms and conditions.

AIG has proposed that a new body be established to set minimum wages - a Minimum Wages Commission - comprised of multi-disciplinary experts to advise the AIRC on future safety net increases. This body would take into account the broad range of issues that including welfare, tax changes, productivity, inflation and the impact on employment. This proposal is part of a comprehensive plan for reforming Australia's workplace relations system which AIG has presented to the Federal Government.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Free Trade Agreement Can Reduce Impediments

LATEST AUSTRALIAN BUSINESS NEWS

Multilateral and bilateral trade agreements – such as the Free Trade Agreement that exists between the USA and Australia - can remove some of the barriers U.S. based logistic service providers face in foreign markets, according to a U.S. International Trade Commission (USITC) report.

In a May 16 news release announcing its publication, the USITC notes that in recent years impediments in some logistic-related sectors have been reduced as a result of unilateral deregulation or multilateral trade agreements. The report concludes that some of the remaining barriers can be further lowered through multilateral trade negotiations and bilateral free-trade agreements, and that the latter provide the greatest benefit to logistic service firms.

The report also says that the reduction or removal of impediments affecting the industry could lead to an increase in U.S. goods exports.

The report, which was prepared at the request of the Office of the U.S. Trade Representative, can be viewed on the USITC internet site - click here.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Numerous New Defence Industry Opportunities

LATEST AUSTRALIAN BUSINESS NEWS

Australia has decided to enter the next phase of the Joint Strike Fighter (JSF) program, opening up substantial new opportunities for Australian industry. The government today said Australia will enter negotiations with the United States and seven other nations as part of the next phase of the US$200 billion JSF program.

Australia's involvement in the first phase of the JSF project has led to considerable opportunities for Australian industry to compete for work on this large global defence project. This has opened the door for Australian industry to now bid for the larger more lucrative contracts that make up the next phase of the JSF program.

The Australian Defence Minister said negotiations were expected to lead to a cooperative agreement in late 2006 with the Government to make a decision on aircraft purchases in 2008. If approved, the project will replace Australia's F-111 and F/A-18 aircraft with the next generation JSF.

Current analysis suggests that the proposal for up to 100 Conventional Take-Off and Landing JSF aircraft, and associated support elements, remain within the original cost estimates.

The Government is committed to Australian industry participation in the JSF program. To date, 18 Australian companies have won contracts or commitments of work in the existing System Development and Demonstration phase.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Unemployment Remains Steady

LATEST AUSTRALIAN BUSINESS NEWS

The latest unemployment figures released yesterday show that Australia’s unemployment rate has remained steady at 5.1%.

This figure has kept the unemployment rate at a 28 year low.

Coupled with continuing good economic growth at around 3% and a 2005/2006 budget that will increase the level of disposable income through tax-cuts, there is some concern that interest rates might rise sometime over the next 6 months.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

A Confused Response to a Well Received Federal Budget

LATEST AUSTRALIAN BUSINESS NEWS

The most interesting aspect of the post-budget debate has been the response of the Labor opposition party to what was a well accepted Federal budget. (See my article of yesterday- below.)

With over $21 billion in tax cuts scheduled to take effect initially from 1 July 2005, the Opposition parties have indicated that they will vote against the cuts. Why - it is difficult for anyone to fathom. Apparently it is a matter of principle.

But what has confused commentators and the community at large is that the Opposition parties seem to have forgotten that the Howard government gets control of both Houses of Parliament from 1 July - so the necessary legislation can be passed anyway - but the Opposition will have delayed the tax cuts (and other budget initiatives) for a month or so.

As a political tactic, the overall response appears to be one of a confused and rudderless Opposition, that has focused debate on themselves rather than on the government - which you'd have to assume was the objective.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

mailto:david.taylor@agarcarlyon.com

2005/2006 Australian Budget -Tax Cuts Plus a Good Surplus

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Federal Treasurer last night released the government’s budget for 2005/2006.

Unlike many other western nations, the Australian government led by Prime Minister John Howard, again brought down a healthy surplus (8 of the last 10 budgets have been in surplus) while continuing a program of economic growth. Economic growth is expected to be at around 3% for the forthcoming 12 months.

Details of the budget can be read on line in various locations, including;

• The Australian Broadcasting Corporation (ABC) - click here or
  
• The Australian Government's own budget website - click here
  

It is worth reporting here that the main features are;

• Tax cuts of $21.7 billion
• An increase in the threshold at which the top personal tax rate cuts in from $70,000 to $125,000
• A lowering of the lowest income tax rate from 17% to 15%
• Positive changes to the taxing regime of superannuation/pensions
• An overhaul of the welfare system
• New funding for child care places
• Funding increases for vocational skills training
• Some tax relief for businesses
• A surplus of nearly $9 billion

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

USA and Australia Facing Conflicting Futures

LATEST AUSTRALIAN BUSINESS NEWS

Just as an Australian survey of business expectations has found most Australian businesses are preparing for a difficult start to the new financial year (1 July), the US is reporting strong job prospects.

According to the latest Dun and Bradstreet business expectations survey, most business owners say there is a softening retail demand and their profits have fallen.

The US report has led markets there to factor in continuing growth and steady interest rates.

The Australian report has caused some uncertainty in the markets and has resulted in a slight decline in the value of the A$ versus the US$.

At the time of writing, A$1 = US77.44 cents

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Crackdown on Advertising that Stretches the Truth

LATEST AUSTRALIAN BUSINESS NEWS

Only a week after airlines in Australia have been forced by the consumer watchdog, the Australian Competition and Consumer Commission (ACCC), to advertise the full cost of airfares – including all taxes and charges – the Commission is now focusing on a new group.

The ACCC has reacted to community concerns that juice bars are stretching the truth in their claims of various health benefits that come from drinking their blended juices, smoothies and other juice extracts, which tend to have a wide variety of additives included. The ACCC will be taking action against retailers that cannot provide factual evidence to support their sometimes outlandish claims – of how their juices and drinks will help you through the day – let alone improve your memory and longevity.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

2 Steps Forward and 1 Step Back

LATEST AUSTRALIAN BUSINESS NEWS

Australia's 2005/2006 Federal Budget will be released by the Treasurer, Peter Costello next Tuesday, 10 May. With an expectation of a healthy surplus, the pre-budget news is being dampened by the latest trade figures.

The official numbers released yesterday show that Australia produced its second largest trade deficit on record for the month of March. The deficit was $2.67 billion - a blow out of nearly half a billion dollars from what was expected. The blow out was not helped by the increase in the cost of oil imports (up 44%) and a decline in rural exports (down 8%). Rural production has been severely hit by the current drought. Imports rose 2% for the month and exports declined 1% - leading to many media commenting that it was a month of 2 steps forward and 1 step back.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

mailto:david.taylor@agarcarlyon.com

Interest Rates Remain Unchanged

LATEST AUSTRALIAN BUSINESS NEWS

The Reserve Bank of Australia announced yesterday that at its monthly meeting on Tuesday it had determined to leave the official cash rate unchanged.

The official cash rate remains at 5.50%

Meanwhile, the Australian Tax Office (ATO) warned business owners to be wary of promoters offering to reduce income tax through arrangements using tax losses in an unrelated company.

Under the arrangements businesses are restructured so that income is channelled through a chain of trusts and ultimately to a company with alleged tax losses.

The Tax Office is concerned that these arrangements involve the artificial transfer of income and that at all times the business owners retain effective control of the money in question, less a fee which is paid in cash to the promoter. These arrangements may breach a number of provisions of the Tax Act, including the general anti-avoidance rules.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Potential Savings of Billions of Dollars

LATEST AUSTRALIAN BUSINESS NEWS

Australian research will potentially save the oil and gas industry billions of dollars by predicting the effects of future climate change on the seabed.

Australia’s Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) Wealth from Oceans Flagship and its partners have developed Sedsim, a high-performance computing program used to predict seabed changes over long periods of time. This project draws together CSIRO's expertise in Petroleum Resources and Atmospheric Research, with international input from the US based Institute of Arctic and Alpine Research (INSTAAR), Geoscience Australia (GA) and, in the early stages of the project, Stanford University.

In a recent statement from the CSIRO, Craig Roy, Director of Wealth from Oceans Flagship said that the research is a world first, with the Flagship setting the pace globally in seabed modelling.

The research team believes this could have a major impact in predicting the risk to billion dollar infrastructure.. One of the main applications will be to assist in the appropriate design of oil and gas pipelines, in both low and high risk areas.

Sedsim seabed modelling brings together an advanced sediment transport model, capable of predicting sediment movement over decades. It can also be applied globally using a state of the art numeric model to predict sediment erosion, transport and deposition in a wide variety of sedimentary environments, including shallow to deep marine. The program can model the way sediment responds to waves, current and tidal effects.

In the next decade, it is predicted that up to $10 billion may be spent on thousands of kilometres of offshore pipelines worldwide. Substantial environmental and costs savings could be made if these pipelines can be designed to suit both the present sub-sea environment and the future seabed conditions.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

Interest Rates Likely to Remain Unchanged

LATEST AUSTRALIAN BUSINESS NEWS

With the Australian economy showing a deal of tightening over the past months there is added speculation that tomorrow’s meeting of the Reserve Bank of Australia (RBA) will leave interest rates unchanged.

Key data at the time of writing -

• Official Cash Rates 5.5%
• Exchange Rate A$1 = US77.95 cents
• Inflation Rate 2.4% for the 12 months to March 2005
• Next Statement on Monetary Policy by RBA - 6 May 2005

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com