Category: Australian News

The Final Budget Outcome for 2019-20 shows Australia’s budget is in a much stronger position than many other comparable nations despite the significant health and economic challenges from COVID-19.
COVID-19 has caused severe economic contractions the world over, and to help cushion the blow for Australians the Morrison Government has provided an unprecedented level of support to households and businesses.
Through the Morrison Government’s strong fiscal management, Australia entered the COVID-19 crisis in a position of economic and fiscal strength.
The decisions we made prior to this crisis have improved our budget position by more than $250 billion.
This put us on a better, more sustainable fiscal trajectory for the future before we went into this crisis. If we had not done that, we would have had less fiscal capacity to respond and our economy would have been less resilient.
Returning the budget to balance for the first time in 11 years underpinned our capacity to respond to this unprecedented shock, with more than $300 billion in economic support committed to date. At the same time, our AAA credit rating has been reaffirmed during the pandemic by all three major credit ratings agencies.
Total cash payments were $57.7 billion higher than the 2019-20 MYEFO estimate, as Government supports like JobKeeper, the Coronavirus Supplement, the CashFlow boost and other economic support payments were made to Australians.
While payments increased as a result of COVID-19, total receipts were $33.1 billion lower than estimated at the 2019-20 MYEFO as economic activity across the world and Australia slowed.
The Australian Government general government sector recorded an underlying cash deficit of $85.3 billion in 2019-20.
This is a $0.5 billion improvement compared to the Economic and Fiscal update in July, but a $90.3 billion deterioration since the 2019-20 MYEFO.
A net operating deficit of $92.3 billion was recorded for 2019-20 compared with a pre-COVID-19 surplus of $8 billion estimated at the time of the 2019-20 MYEFO.
General government net debt was $491.2 billion (24.8 percent of GDP) which was $98.9 billion higher than estimated at the time of the 2019-20 MYEFO.
Despite our increased debt levels, they remain lower than many comparable nations with the average debt to GDP ratio for advanced G20 economies expected to exceed 100 per cent in 2020.
We will release the next instalment of our economic plan to help rebuild Australia’s economy and to get people back to work in the 2020-21 Budget on 6 October 2020.
The 2019-20 Final Budget Outcome document can be found via www.budget.gov.au

As part of the Morrison Government’s economic recovery plan, we are reducing the cost and time it takes consumers and businesses to access credit.
Credit is the lifeblood of the Australian economy, with billions of dollars in new credit extended to households and businesses in Australia each month.
Now more than ever, it is critical that unnecessary barriers to accessing credit are removed so that consumers can continue to spend and businesses can invest and create jobs.
What started a decade ago as a principles based framework to regulate the provision of consumer credit has now evolved into a regime that is overly prescriptive, complex and unnecessarily onerous on consumers.
The Government will simplify the system by moving away from a “one-size-fits-all” approach while at the same time strengthening consumer protections for those that need it.
Key elements of the reforms include:

• Removing responsible lending obligations from the National Consumer Credit Protection Act 2009, with the exception of small amount credit contracts (SACCs) and consumer leases where heightened obligations will be introduced.
• Ensuring that authorised deposit-taking institutions (ADIs) will continue to comply with APRA’s lending standards requiring sound credit assessment and approval criteria.
• Adopting key elements of APRA’s ADI lending standards and applying them to non-ADIs.
• Protecting consumers from the predatory practices of debt management firms by requiring them to hold an Australian Credit Licence when they are paid to represent consumers in disputes with financial institutions.
• Allowing lenders to rely on the information provided by borrowers, replacing the current practice of ‘lender beware’ with a ‘borrower responsibility’ principle.
• Removing the ambiguity regarding the application of consumer lending laws to small business lending.

These changes will make it easier for the majority of Australians and small businesses to access credit, reduce red tape, improve competition, and ensure that the strongest consumer protections are targeted at the most vulnerable Australians.
The Government will consult publicly with stakeholders before finalising any legislation required to implement the reforms.
Further information on the measures can be found on the Treasury website.

The Morrison Government will undertake the most significant reforms to Australia’s insolvency framework in 30 years as part of our economic recovery plan to keep businesses in business and Australians in jobs.
The reforms, which draw on key features from Chapter 11 of the Bankruptcy Code in the United States, will help more small businesses restructure and survive the economic impact of COVID-19. As the economy continues to recover, it will be critical that distressed businesses have the necessary flexibility to either restructure or to wind down their operations in an orderly manner.
Key elements of the reforms include:

• The introduction of a new debt restructuring process for incorporated businesses with liabilities of less than $1 million, drawing on some key features of the Chapter 11 bankruptcy model in the United States.
• Moving from a rigid one-size-fits-all “creditor in possession” model to a more flexible “debtor in possession” model which will allow eligible small businesses to restructure their existing debts while remaining in control of their business.
• A rapid twenty business day period for the development of a restructuring plan by a small business restructuring practitioner, followed by fifteen business days for creditors to vote on the plan.
• A new, simplified liquidation pathway for small businesses to allow faster and lower cost liquidation.
• Complementary measures to ensure the insolvency sector can respond effectively both in the short and long term to increased demand and to meet the needs of small business.

The reforms will cover around 76 per cent of businesses subject to insolvencies today, 98 per cent of whom who have less than 20 employees.
Together, these measures will reposition our insolvency system to reduce costs for small businesses, reduce the time they spend during the insolvency process, ensure greater economic dynamism, and ultimately help more small businesses get to the other side of the crisis.
On 22 March 2020, the Government announced temporary regulatory measures to help financially distressed businesses get to the other side of COVID-19. On 7 September 2020 the Government announced a further extension of this relief to 31 December 2020. The new processes will be available for small businesses from 1 January 2021.
Further information on the measures can be found on the Treasury website.

The Government’s NBN announcement is a small step in the right direction, but there are still significant issues that need to be addressed, the Greens say.
“This is an effective admission of guilt by the Liberals- that fibre to the premises should have been done years ago,” Greens NBN spokesperson Nick McKim said.
“It is encouraging that many more Australians will have access to faster broadband, but the plan announced today does not cover enough homes and businesses.”
“But this plan does not cover the exorbitant cost of broadband in Australia.”
“As we have seen this year in particular, the internet is an essential service, and cost is one of the biggest barriers preventing access.”
“Minister Fletcher also needs to address the NBN’s horrible record of mistreating contractors.”
“It is critical that all people employed on this project are treated as employees and paid all their relevant entitlements.”
“Finally, the NBN should scrap its plans to lay off 800 workers while paying bonuses to its senior executives. This is a terrible decision that simply should not happen during a recession.”

Following reports of a mass forced-labour program in Tibet, Greens Senator Janet Rice has called on the Chinese Government to allow access to the region so journalists and officials can look into these allegations.
Senator Janet Rice, Greens Foreign Affairs spokesperson said:
“Reports of a mass labour program in Tibet are deeply disturbing. This program has dangerous parallels with the enforced labour, indoctrination and surveillance of the Uighur people.
“The Tibetan people have suffered under Chinese Government oppression for many years.  They have been deprived of their right to freedom of speech and their right to freedom of religious observance.  Now it looks like hundreds of thousands of rural workers are being channelled into so-called “training” centres.
“The Morrison Government should raise Australia’s deep concerns and call on the Chinese Government to allow access to Tibet so that officials and journalists can see for themselves what is going on.”

Australian Greens Education spokesperson Senator Mehreen Faruqi has said she was proud to speak at and attend heavily-policed student rallies at the University of Sydney today, which were organised in opposition to the federal government’s proposed university fee hikes and funding cuts.
Senator Faruqi said:
“I was so proud to stand with students and staff in opposition to these terrible fee hikes and funding cuts.
“Unfortunately my speech was cut short by NSW police moving us on.
“It was outrageous to see, yet again, a heavy-handed police presence at these vital ongoing student rallies.
“It’s nothing less than authoritarian to shut down safety-conscious, socially distanced rallies while thousands are allowed to congregate at the footy.
“Public protest is a fundamental right and a cornerstone of a functioning democracy.
“Classes are in full swing and face-to-face. Police action at these rallies is not about public safety – it’s about shutting down democracy,” she said.

Senior Australians who are deaf or hard of hearing will have access to sign language services for a broader range of daily activities as part of a Federal Government funding boost.
A $13 million injection will mean sign language services will be more accessible for deaf elders aged 65 and over.
Minister for Aged Care and Senior Australians, Richard Colbeck, said the initiative marked an important milestone for elders who use Auslan in their everyday communication.
Today marks International Day of Sign Languages.
“Hearing limitations can have a profound impact on the daily activities of senior Australians,” Minister Colbeck said.
“The Morrison Government is committed to ensuring anybody dealing with hearing loss can still live life to the full.”
Certified interpreters will provide Auslan, American Sign Language and International Sign Languages as part of the new service due to launch in November.
Signed English for deaf consumers and tactile signing and hand-over-hand for deafblind users will also be available.
It means those in need will have access to interpreters for a range of daily activities from face-to-face appointments and online learning to community and family functions.
The service, which will also include on-demand video remote interpreting, will be offered nationally, seven days a week and after business hours.
“I thank Australian Deaf Elders and members for advising how together we can address this gap and develop the new service,” Minister Colbeck said.
“I know many Australians who are deaf or hard of hearing have benefited from sign language interpreters at press briefings during the recent bushfires and the COVID-19 health emergency,” Minister Colbeck said.
“The Government will continue to identify and remove barriers so senior Australians can live healthy, active and socially connected lives.”
For more information about this and other sign language services available to senior Australians visit the My Aged Care website or call 1800 200 422.

The Greens have said that a report of the Australian National Audit Office on a land purchase for Western Sydney Airport is damning and demands explanations by senior Commonwealth ministers.
Senator Mehreen Faruqi, Greens Senator for NSW, said:
“This report is damning. On top of enormous incompetence, it reveals instances of completely inappropriate and unethical decision-making.
“The Prime Minister and his ministers must explain this rotten mess. The buck stops with them.
“The federal government is spending billions of dollars on this airport which doesn’t stack up. How much more public money has been paid out improperly?
“I’ve long said that the Western Sydney Airport is a scam being foisted on the people of Western Sydney by the federal and state governments.
“The airport will jeopardise the World Heritage listing of the unique Greater Blue Mountains area. It will have a massive impact on the local community and the environment. The government has totally ignored these very significant impacts while planning and developing the Western Sydney Airport,” she said.
Senator Janet Rice, Greens transport and infrastructure spokesperson, said:
“The Morrison government has form in ignoring proper processes and doling out hundreds of millions of taxpayer dollars to their mates.
“It’s no wonder the majority of Australians don’t trust politicians when this is what happens under the watch of their elected representatives.
“The Prime Minister, Minister McCormack and Minister Tudge need to explain how this happened and why Australian taxpayers are more than $26 million out of pocket.
“We have the sports rorts inquiry still going, but it seems every other week there is new evidence of the Coalition mishandling taxpayers money. We need an inquiry into all the Morrison government’s rorts to investigate these kinds of reports, and a federal anti-corruption commission.”

Following reports of the government’s energy roadmap, Leader of the Australian Greens Adam Bandt MP has slammed the plan, declaring it as a cover for an expansion of major fossil fuel projects. While reports indicate the roadmap includes references to green hydrogen, it places a focus on blue hydrogen made with fossil fuels and failed carbon capture technology, it locks in coal and gas, and has no science-based binding targets to reduce carbon emissions over the next decade.
“This roadmap will take us off a cliff,” Mr Bandt said. “The Morrison government is accelerating towards climate collapse.”
“This technology list is a fig leaf for the continued expansion of the fossil fuel industry. “This roadmap contains no plan to phase out coal and gas. In fact, the roadmap bakes in coal and gas for years to come, subsidising the coal and gas cartels from the public purse.
“Carbon capture and storage is unicorn technology that has already had millions of dollars of public money poured into it.
“This is corporate capture and profit as the coal and gas cartels get access to billions of dollars meant for renewables.
“We already have the technology we need to move to a clean energy economy that exports hydrogen to our neighbours.
“People across the country are demanding a rapid transition to renewable energy, not just putting solar panels next to new gas wells. This approach doubles down on last century’s technology, all to suit the coal and gas corporations whose fingerprints are all over this roadmap.
“Across the country, people are crying out for a transformative shift to clean energy, and the hundreds of thousands of jobs it will create.
“If you don’t have a plan to phase out coal and gas in the next decade you don’t have a real plan for climate action.”