With thousands of businesses in distress during the coronavirus restrictions, the Federal Government has moved to reform the insolvency process to enable more small companies to stay in operation. Federal Treasurer Josh Frydenberg announced a new debt restructuring process for incorporated businesses with liabilities of less than $1 million, drawing on features of the Chapter 11 bankruptcy model in the US. The proposed model would allow eligible small businesses to restructure their existing debts while remaining in control of their business. The Treasurer said the reforms would cover around 76 per cent of businesses subject to insolvencies today, 98 per cent of whom had less than 20 employees.
To regain the White House, the Democrats face a major challenge in regaining the spotlight states of Ohio, Michigan, Wisconsin and Pennsylvania.
Commentators may call it the Rust Belt, but the region promises a golden return for the US presidential candidate who can win over the four crucial states.
Prime Minister Scott Morrison announced on Thursday that the Government would introduce legislation to crack down on state and territory agreements with foreign countries that were not in the national interest. Under the reforms, the Foreign Minister would have the power to review existing and prospective arrangements between states and territories and all foreign governments.
Observers may think the US votes directly for a Presidential candidate. Actually, the people vote for their respective state’s (and, in the national capital, the District of Columbia’s) members (‘Electors’) of the Electoral College.
It is the 538-member Electoral College that determines who will be President, albeit based on results cast in the election in early November.
As the Federal Government moves to fight a major outbreak of coronavirus in Victorian aged care homes, the Prime Minister has confirmed that he is discussing with the Minister for Industrial Relations the prospect of introducing pandemic leave.
After announcing $259 billion in emergency rescue packages, the Federal Government is looking at years of budget deficits as the nation slips into and then emerges from, a looming economic recession. It won’t be an easy task to deliver the next budget surplus, as previous recoveries have shown. Governments typically spend up big to reverse or avert, an economic slowdown.
Budget papers from the Department of Finance underline the hard slog required in returning to a budget surplus after a recession.
Prime Minister Scott Morrison and Defence Minister Linda Reynolds have announced a major escalation in Australia’s investment in long-range defence strike capabilities.
The Australian Government has announced a big shake-up of the higher education section. Moody’s reaffirms Australia’s credit rating. Australian trade slumps due to COVID-19.
Only in dire situations – such as a medical emergency – could superannuation funds be withdrawn before the legal preservation age. Now, another emergency – COVID-19 – has changed the rules.
Prime Minister Scott Morrison reported that Australian organisations, including the public and private sectors, were being targeted by a “sophisticated state-based cyber actor”. The PM said the attacks were targeting a range of sectors at all levels of government and industry. He urged organisations, particularly those in the health, critical infrastructure and essential services to increase surveillance to thwart cyber activity.
In a further move to stimulate business investment, the Morrison Government said it would extend the $150,000 instant asset write-off for six months until 31 December this year. Australian businesses with an annual turnover of less than $500 million will be encouraged to bring forward investment to support economic growth over the near term. Assets can be new or second-hand.
The emergence out of drought is positively good news for the Australian economy, and a reminder of the nation’s capacity to produce food and fibre for world supply chains.
Strong export performance promises to lift and keep Australia out of a prolonged recession and pour investment back into regional economies.
According to the ABS, Australia recorded just 331,900 visitor arrivals in March – down 60 per cent on the 836,300 visitors who arrived in March 2019.
While borders remain closed, Australia is on track to record its lowest level of international visitors since 1989, when around two million inbound visits were recorded.
