Labor dumps tax plans; prices leap
Federal Labor drops key tax reform plans
Less than 12 months from the next Federal Election, Opposition Leader Anthony Albanese has removed major Labor commitments to reform tax treatment of capital gains and negative gearing. Mr Albanese said a Labor government would maintain the existing regimes for negative gearing and capital gains, and uphold legislated changes to personal income taxes. He did, however, hint at changes to ensure that “multinational corporations pay their fair share of tax.” Labor’s proposed changes to the treatment of capital gains and negative gearing were hotly debated during the 2019 election.
Annual inflation rate rises 3.8 per cent
Australia has recorded inflation of 3.8 per cent over the 12 months to the June 2021 quarter, reflecting the post-Covid economic recovery and the unwinding of temporary government changes, such as free child care. Figures from the Australian Bureau of Statistics show that the Consumer Price Index rose 0.8 per cent in the June quarter, with higher prices for fuel, food and motor vehicles. Among the capital cities, Perth recorded the highest quarterly CPI rise, with 1.9 per cent, with Melbourne the lowest, at 0.3 per cent.
Remote work under focus in cyber warning
Working-from-home arrangements during Covid-19 have been cited as a source of cyber vulnerability, in a joint advisory issued by security agencies of Australia, the United States and the United Kingdom. The advisory, featuring the Australian Cyber Security Centre, noted that organisations and households had likely been exploited by malicious cyber actors through software flaws in 2020 because of the expansion of remote work arrangements. It said that targeted vulnerabilities in 2020 affected remote work, virtual private networks or cloud technologies. Agencies co-operating with the ACSC were the US Cybersecurity and Infrastructure Security Agency and the Federal Bureau of Investigation, and the UK’s National Security Cyber Centre.
Resources demand sends export prices soaring
Figures released this week by the ABS demonstrate how rising export prices have propelled Australia’s economic recovery. In the June quarter, the export price index rose 13.2 per cent and by 26 per cent through the year, while the import price index recorded a quarterly rise of just 1.9 per cent and fell by 2.5 per cent through the year. Soaring iron ore prices and strong demand for thermal coal and for oil, as well as rising meat prices, contributed to the buoyant export prices for Australia.
Foreign investment reforms under public review
Federal Treasury is seeking comment from business on recent legislative reforms to Australia’s foreign investment regime. In January this year, the foreign investment framework was updated to address national security risks, strengthen compliance and establish a register of foreign ownership of Australian assets. Under the reforms, Treasury is required to consider the impact of the reforms, including whether the right balance had been struck in welcoming foreign investment and protecting Australia’s national interests.
$9 million funding for private education providers
Education and Youth Minister Alan Tudge has announced more than $9 million in funding to assist private higher education and English language providers in expanding their online and offshore courses. Mr Tudge said up to $150,000 would be provided to 63 businesses affected by the lack of international students due to border closures. Some private providers had experienced up to a 70 per cent decline in international student numbers, he said.