Archived News for Finance Sector Professionals - September, 2011
The Federal Government has released the 2010-11 Final Budget Outcome, finding that the global financial downturn had wiped $40 billion off the forecasted growth rates.
“While Australia avoided recession, the global financial crisis still cut around $130 billion from government revenues as the economy slowed markedly and businesses accumulated substantial income and capital losses that continue to be offset against tax liabilities,” Treasurer Wayne Swan said.
The Australian Government general government sector recorded an underlying cash deficit of 3.4 per cent of GDP ($47.7 billion) for 2010-11.
Australian female executives have pushed for the government to make childcare and nanny services tax deductable enabling women to be available for employment and those already at work could have more opportunities for promotion.
Bank of America Merrill Lynch and the Export Finance and Insurance Corporation (EFIC) have helped Australian businesses protect their export contract payments by signing a Master Documentary Credit Guarantee Facility.
The Australian Taxation Office (ATO) has developed an electronic form to make it easier to connect account holders with 5.8 million lost super accounts worth more than $18.8 billion.
The September quarter 2011 issue of the Australian Consumer Price Index to be released 26 October 2011, will incorporate several key recommendations from the Outcome of the 16th Series Australian Consumer Price Index Review by the Australian Bureau of Statistics (ABS). The changes are described in an information paper: Introduction of the 16th Series Australian Consumer Price Index released today by the Bureau.
The main outcome will be to update the household expenditure weights applied to the different goods and services in the CPI basket to reflect current patterns of household expenditure. A comparison between the previous household expenditure weights (June quarter 2005) and the new household expenditure weights (June quarter 2011) is included in Appendix 3 of the release. For example, household expenditure is now relatively higher on restaurant meals and lower on beef and veal.
Previously published headline CPI (All groups CPI) will not be revised as a result of the changes. The All groups CPI for the June quarter 2011 was 0.9% for the quarter, and 3.6% through the year.
The CPI has been reviewed 16 times since its introduction in 1960; these reviews make sure that the CPI basket remains relevant to Australian purchasing patterns.
The information paper presents the new CPI expenditure weights which will be used from the September quarter 2011, details the methods used in deriving the weights and highlights major shifts in weights.
The ABS produces, together with the quarterly headline CPI, a suite of related indexes that help users understand the pattern of inflationary pressures in the Australian economy. The information paper describes the composition of these series. Following the recommendation of the 2010 Review, the ABS has decided to remove the indirect charges for deposit and loan facilities from the headline CPI pending improvements to the methodology and underlying data sources. In the meantime a new analytical series will be produced - the All groups CPI including Deposit and loans (indirect charges).
The information paper also provides a mock–up of the revised format of the September quarter 2011 publication and downloadable spreadsheets to enable users to become familiar with them before the release date.
HSBC Bank Australia and Export Finance and Insurance Corporation (EFIC) have announced the signing of a new Master Working capital Guarantee Facility with an aim to assist Australian exporters in gaining access to additional working capital to finance export contracts.
Westpac has announced that Ann Pickard will take a senior independent non-executive Director at the company’s board. Ms Pickard’s appointment will take effect from the beginning of December.
Euromoney has named Treasurer Wayne Swan finance minister of the year due to his strict handling of the economy through and beyond the financial crisis, becoming the second Australian to have ever won the prestigious award.
The Federal Government has revealed amendments to superannuation laws which are set to provide people with low cost, commission-free funds under the MySuper schemes.
The Federal Government has released an updated model of the impact of the carbon price which states the Australian economy will continue to grow strongly at the same time making reductions in carbon emissions.
The IMF’s September World Economic Outlook (WEO) expects Australia to grow faster than all major advanced economies next year with an expected growth of 3.3 per cent. Predicted growth for advanced economies as a whole is 1.9 per cent in 2012 due to increased global instability.
Australia’s economic recovery is on track despite growing global uncertainty surrounding mounting sovereign debt in Europe and a stagnate US economy according to a report published by global rating agency Standard & Poor.
ANZ’s chief executive has announced the company will be looking to expand its holdings in the Asia Pacific region as international banks sell assets to stabilise their capital bases.