PRESS DIGEST-Australian General News - May 14
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Federal Opposition Leader Malcolm Turnbull has questioned the Rudd government's assertion that the economy will grow by 4.5 percent in fiscal 2012 and 2013. Treasurer Wayne Swan has used the growth forecasts, which have been based on previous modelling following a recession, to justify the Government's pledge to increase spending if the recession worsens. However, Mr Turnbull yesterday described such a "dramatic and sustained turnaround [in the economy]" as "highly unlikely." Page 1.
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Some of Australia's largest companies are considering freezing their employee share schemes following changes by the Rudd government to the way share schemes are taxed. Conglomerate Wesfarmers (WES.AX) and essential services provider United Group (UGL.AX) yesterday said they would freeze or scrap their planned employee share schemes after the Government announced on Tuesday that they would tax employees upfront when granted shares or options by their employer. Page 1.
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Federal Treasurer Wayne Swan has agreed to allow financier Ford Credit to access up to A$550 million from the Government's OzCar fund in order to bridge a shortfall in automotive finance funding. Mr Swan yesterday warned that "thousands of Australian jobs in the automotive industry' were at risk unless the Senate passed the changes to the legislation. OzCar was launched last year after finance lenders GE Money and GMAC announced their withdrawal from the Australian market. Page 3.
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The future of the Rudd government's proposed Australian Business Investment Partnership (ABIP) remains uncertain, with the necessary support of independent senators yet to be finalised. The Greens, independent senator Nick Xenophon and Family First senator Steve Fielding have yet to back the A$26 billion commercial property guarantee, while the Opposition has already signalled it will vote against it. Senator Xenophon says he is "concerned what this [bill] means for taxpayers.' Page 4.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Federal Government has reaped A$393 million in tax revenue from beer and spirits in addition to the A$424 million it gained in alcopops taxes following yesterday's Senate approval of the troubled alcopops' bill. However, a second alcopops bill that would retain the 70 percent tax hike indefinitely was rejected, with claims from the Opposition and independent senators that consumers have merely switched from one type of alcoholic beverage to another. "The alcopops tax is a dud,' said Family First Senator Steve Fielding. Page 1.
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Collapsed childcare operator ABC Learning Centres director Larry Anthony, a former federal minister who oversaw the Howard government's free-market approach to child-care, yesterday stepped down from his role. "There was nothing more I could contribute,' Mr Anthony said. Mr Anthony's resignation comes as fifteen childcare centres owned by ABC Learning are due to close tomorrow. Receivers McGrathNicol and PPB have found 213 buyers for 241 centres deemed "unviable,' with the remainder to shutdown by tomorrow's deadline for their sale. Page 2.
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Australian television and radio personality Rex Hunt has been found guilty of recklessly causing injury after attacking a cyclist in a road rage incident, leaving the man with a broken finger. Mr Hunt, 60, was yesterday sentenced to 100 hours unpaid community service, with magistrate Peter Reardon saying Hunt had "let down your wife, your family, your friends, your legion of fans and most of all yourself.' Hunt said that he felt "a great responsibility' to his supporters. Page 2. Continued...
