- Opinion
- Federal budget
A fiscal revolution in a zero interest rate world
This big-spending budget exposes a shift in economic policy that turns the old fiscal rules upside down.
Income tax cut a possible election sweetener
Amid speculation the budget could be the last before a federal election, Treasurer Josh Frydenberg extended a one-off tax cut for about 10.2 million people earning up to $90,000.
No real pay rises expected for years: Treasury
Workers should not expect a real wage increase for up to four years under Treasury’s forecasts as inflation edges higher than wage growth.
Fortress Australia to reopen from mid-2022
Downturns in major overseas economies could delay the reopening of Australia as the government flags borders would gradually reopen from mid-2022.
Childcare subsidies make up half of new spending for women
The government will spend $3.4 billion to promote women’s health, safety and economic security, with half of this to be absorbed by well-flagged childcare subsidies.
Revenue rocket boosts tax coffers by $110b
Compared to the darkest days of the 2020 pandemic, the latest budget anticipates a dramatic recovery in tax revenues across individuals, companies and the GST.
- Opinion
- Federal budget
Budget triumph hides long-term problems
The budget is an undoubted success - but Australia’s quicker-than-expected recovery is papering over issues that have been put off for years, writes Steven Hamilton.
FEDERAL BUDGET
Business wins $20.7b as tax breaks extended to 2023
More than 99 per cent of businesses will be allowed to deduct the full cost of eligible capital assets until June 30, 2023, under the one-year extension.
Tax breaks for biotech patents
The so-called “patent box” will slash the corporate tax rate from 30 per cent to 17 per cent on profits derived from medical and biotech patents that are held in Australia.
Childcare subsidies make up half of new spending for women
The government will spend $3.4 billion to promote women’s health, safety and economic security, with half of this to be absorbed by well-flagged childcare subsidies.
NDIS overhaul flagged as Canberra tips in another $13.2b
The government has raised the prospect of overhauling the National Disability Insurance Scheme to rein in spiralling costs, after pumping another $13.2 billion over four years into the program.
Disability sector needs wages lift, training to stop ‘perfect storm’
Wages on par with fast food workers and an ageing workforce are leading to a shortage of disability care workers, Your Side CEO Danielle Ballantine warns.
Companies
Reformed iron ore miners tipped to pay $65b dividend
Australia’s big three miners are expected to pass the vast majority of the iron ore boom back to shareholders amid low debt levels.
Best & Less excises JobKeeper subsidies to reassure investors
JobKeeper wage subsidies have been removed from Best & Less’s pro forma profits and forecasts.
- Opinion
- Regulation
Are Westpac’s Chinese walls too flimsy for a solid defence?
The bank’s defence of the regulator’s blockbuster insider trading case will likely succeed or fail on the strength of its internal information barriers.
Wylie says Stokes aims to control Boral without paying premium
John Wylie’s Tanarra Capital wants Boral to accelerate a renewal of the board following the Seven Group bid.
- Opinion
- Federal budget
Frydenberg’s sugar hit for investment spending
The extension of the tax sweeteners will be welcome news for bankers, who can look forward to stronger growth in business lending.
- Opinion
- Chanticleer
Boral investors would be silly to sell to Stokes
Now that Boral has rejected Seven’s takeover offer, we can see the bid for what it is – a giant stock tip from one of Australia’s smartest business families.
Fears grow of China dispute spilling over into Australian LNG
Some smaller Chinese LNG importers have reportedly been told to avoid buying Australian cargoes, posing a potential threat to Australia’s $13 billion export trade.
Markets
Iron ore fuels $65b dividend windfall
The record iron ore price will add billions to the federal budget, but it means a higher Australian dollar. For investors, dividends will only get better.
- Opinion
- Chanticleer
Past and future collide in iron ore mania
Speculators are pushing iron ore prices to silly levels. But beneath this, surging demand and Australia’s stubbornly static supply are driving the market.
Australia rolls out red carpet to Wall Street
The Morrison government will consider allowing big international investors to operate in Australia without a financial services licence, while fast-tracking applications from new entrants.
New RBA powers to fix market failures
The corporate regulator and Reserve Bank of Australia will get new powers to identify and intervene should financial market infrastructure like the ASX catastrophically fail.
Revenue rocket boosts tax coffers by $110b
Compared to the darkest days of the 2020 pandemic, the latest budget anticipates a dramatic recovery in tax revenues across individuals, companies and the GST.
Opinion
Australia is now a hostage to fortune
Australia has gone straight back to its recurring bad habit: the permanent spending of any temporary budgetary gain. It just assumes everything will keep going the government’s way.
Editorial
A fiscal revolution in a zero interest rate world
This big-spending budget exposes a shift in economic policy that turns the old fiscal rules upside down.
Economics editor
Frydenberg’s spendathon sets up the election
Josh Frydenberg has demonstrated a willingness to use a strong economic recovery to help pay for a lot more services usually considered to be Labor’s strength and the Coalition’s vulnerability.
Columnist
How the dream recovery could become a nightmare
If the pandemic resurges, or interest rates rise, Scott Morrison could find out why economists have nagged him to reform the economy.
Contributor
The pendulum has swung in favour of skills training
Universities have been shunned by this budget, but we are still a long way from a unified and integrated tertiary education sector.
Education editor
Morrison, Payne get the message but forget older women
The biggest losers from this budget are older women on the pension who do not own their own home and who receive rental assistance.
BOSS editor
Politics
China leads global economic boom stoked by $20trn stimulus
Treasury is counting on a dramatic surge in growth across Australia’s most important trading partners, led by China, which has weathered the crisis better than most.
The economy is ‘roaring back to life’
Economic growth and employment will continue to charge ahead, driven by significant increases in business investment and consumption, the Treasury predicts.
Craig Kelly’s fake banknotes ‘in breach’ of copyright law
Legal and banknote experts claim that Mr Kelly’s fake banknotes violate the RBA’s reproduction guidelines and could have breached copyright laws.
Vaccine rollout gets $1.9b boost
The budget assumes localised COVID-19 outbreaks will occur in Australia, but effective containment and a population-wide vaccine rollout will manage the risk.
Interest bill still 3.5 times lower than the 1980s
Government debt is on track to hit $1 trillion in two years but interest bills are falling and are more than 3.5 times lower as percentage of GDP than they were when Paul Keating was Treasurer.
SPONSORED
World
China leads global economic boom stoked by $20trn stimulus
Treasury is counting on a dramatic surge in growth across Australia’s most important trading partners, led by China, which has weathered the crisis better than most.
US opens debate over cyber ransom payments after pipeline hack
The Federal Bureau of Investigation has long opposed such payments on the grounds that they will encourage more ransomware attacks.
India’s third wave will hit children, warn medics
The high level of virus circulating means another, third wave of infections is inevitable and children will be particularly vulnerable, doctors told a briefing.
US business calls on China to end domestic favouritism
American companies in China want Beijing to level the playing field between domestic and foreign firms.
Colonial ‘ransomware’ attack shows cyber frailty of US energy grid
Several cybersecurity experts said the incident represents the biggest known cyberattack on US energy infrastructure.
Property
- Exclusive
- Commercial real estate
Savills makes a $150m move on Mascot tower
It is the second significant transaction in the past fortnight for the deep-pocketed global investor, after it partnered in a deal on a Toowoomba shopping mall.
- Exclusive
- Property market
Jellis Craig real estate agency buys Greg Hocking
The two blue-blood agencies are part of a race to consolidate and reap a ‘tailwind’ still expected in Melbourne’s residential market.
Dexus strikes $320m takeover deal with APN Property
With a scheme implementation already struck, the mooted takeover will take Dexus’ funds management portfolio to $23.9 billion.
- Exclusive
- Construction
Private capital floods back into real estate debt ‘like a boomerang’
Mortgage broker Stamford Capital says it seems a new non-bank lender is setting up shop every week as investors chase higher yields in real estate debt.
- Exclusive
- Industrial
MaxCap snaps up Orica site for ‘last mile’ logistics estate
MaxCap has teamed up with developer Time & Place to acquire the 12.6-hectare Villawood site in Sydney that the pair will develop into a $150 million logistics estate.
Wealth
‘Super for housing’ scheme for first home buyers expanded
The government will allow first home buyers to raid up to $50,000 of their superannuation contributions to help them get on the property ladder.
Relief for SMSF investors living overseas
The government will scrap the so-called active member test for self-managed super funds, meaning trustees based overseas can top up their Australian savings.
Technology
Taylor backs technology to reduce carbon emissions
Federal Energy Minister Angus Taylor wants technology to help Australia reach its carbon reduction targets.
- Exclusive
- Cyber security
Engineering firm involved in Nine HQ hit by cyber raid
The Sydney-based company confirmed the attack and said it had engaged external IT and cyber security experts.
New agency to fix supply chain gaps
A new agency will work with business in a $107 million program to bolster critical supplies, starting with medicines and agricultural chemicals.
Work & Careers
No real pay rises expected for years: Treasury
Workers should not expect a real wage increase for up to four years under Treasury’s forecasts as inflation edges higher than wage growth.
Shunned and overlooked, universities face a bleak future
Reeling from border closures and with federal subsidies set to decline, the university sector is facing more hardship.
Life & Luxury
Thousands left with cancelled cruises as ships give up on Australia
Small luxury cruise lines are still trying to get their ships to Australia, but it’s a losing battle against the federal government – and customers are paying the price.
Jewellery designer Blanche Tilden’s art of glass
The Melbourne-based artisan has been working her magic with the delicate material for 25 years, and she’s yet to get bored.
Study shows ecstasy plus therapy can treat severe PTSD
Post-traumatic stress disorder is notoriously difficult to treat but there is growing evidence psychedelic medicine can overcome treatment resistance.
Australian architect was a master of the vanishing act
Kerry Hill broke from cookie-cutter hotels that spoilt their surrounds to making the landscape the star. One & Only Desaru Coast is one of his last resorts.
Nicholas Moore, Judith Neilson join National Gallery board
The former Macquarie chief and leading philanthropist will join the Ryan Stokes-led council overseeing the prestigious Canberra institution.
