ELIMINATING inefficient elements of state taxes, such as the payroll tax threshold and conveyancing duties on the transfer of properties, would add a third of a percent to Australia’s GDP, says Victoria University economist John Madden.

Professor Madden from the University’s Centre of Policy Studies will join a leading panel of economic experts examining Tax Reform in a Modern Federation at the next Melbourne Economic Forum tomorrow.

He will assess the economic gains from proposed state and federal tax reforms.

“There are clear economic gains to be had from these reforms but they would only have a minor impact on the budgetary problems of the federal and state governments,” he said.

“The government faces a considerable fiscal task that requires substantial tax increases to meet planned public expenditures. Economic modelling suggests that increasing the payroll tax rate would be less damaging to the economy than an increase in the GST rate.”

The Turnbull government has pledged to place tax reform at the top of the policy agenda but the hardening of positions on tax reform from unions and business underscores the difficulty the government will face in achieving consensus on a tax package.

Other speakers at the Melbourne Economic Forum include:

• Professor Ross Garnaut, Professorial Research Fellow in Economics, University of Melbourne
• Professor John Daley, Chief Executive Officer, Grattan Institute
• Professor John Freebairn, Ritchie Chair of Economics, Department of Economics, University of Melbourne
• Professor Miranda Stewart, Director, Tax and Transfer Policy, Australian National University
• Laureate Professor Emeritus Cheryl Saunders, Director of Studies, Government Law, Co-Director of Studies, Public and International Law, Melbourne Law School, University of Melbourne.

 
The Melbourne Economic Forum is a joint collaboration between Victoria University and the University of Melbourne. It is run in association with the Australian Financial Review.

Tax Reform in a Modern Federation

When: Thursday 17 December, 11am to 2pm
Where:  University of Melbourne: Woodward Conference Centre, Level 10, Law Building, 185 Pelham Street, Carlton.

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AUSSIE SHOPPERS are tipped to spend $2.3 billion nationwide on Boxing Day 2015, according to the Australian Retailers Association (ARA), with a total of $16.8 billion to be spent from December 26 to January 15, 2016.

Post-Christmas spending estimates by the ARA and Roy Morgan Research indicate sales will be four percent higher than the same period last year, evidence of Australia’s growing love affair with bargains.

“Pre-Christmas 2015 saw record sales at retail stores, and we’re expecting to see a very similar growth story play out in the post-Christmas sales,” said Russell Zimmerman, Executive Director of the ARA.

“A rush of bargain hunters will be out in force on Boxing Day, with December 26 one of the biggest shopping days of the year across the country.

“Boxing Day heralds the opening of the post-Christmas sales period and is traditionally when the biggest savings can be made.

“Of course, the sales will continue beyond December 26 right through January, so for those who aren’t able to get to the shops on Boxing Day, there will be further opportunities to snap up some bargains,” Mr Zimmerman said.

Victoria will see the lion’s share of the post-Christmas shopping growth, up 5.6 percent to $4.2 billion across the 21-day period tracked by ARA and Roy Morgan, followed by NSW at 3.8 percent growth and $5.3 billion.

“All states are predicted to see healthy growth this year, as are all retail categories, although the ‘other’ category will shine particularly brightly in the post-Christmas sales with 6.1 percent growth to $2.3 billion, as will department stores at a 4.3 percent increase and $1 billion sales.”

When it comes to Boxing Day, the ARA anticipates that NSW and Victorian residents will spend the most at $750 million and $721 million respectively.

ARA ROY MORGAN POST-CHRISTMAS 2015/16 SALES PREDICTIONS

December 26, 2015 – January 15, 2016

Boxing Day 2016 sales

(Australian Retailers Association)

2015/16 Post-Christmas Sales Growth by State

(ARA/ROY MORGAN)

2015/16 Post-Christmas Sales Growth by Category

(ARA/ROY MORGAN)

 About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE House of Representatives Standing Committee on Economics will commence biannual public hearings with the Australian Competition and Consumer Commission (ACCC).

This process is similar to that used by the committee to review the RBA and APRA which are also scrutinised and held to account by the committee at biannual public hearings.

Committee Chair, Mr Craig Laundy said,“The ACCC has a vital role in promoting competition, fair trading and regulating national infrastructure for the benefit of all Australians. The ACCC’s role in promoting competition is particularly important as our economy transforms and rebalances activity following on from an enormous mining construction boom.”

The hearings will provide an opportunity for the committee to scrutinise the ACCC on its core objectives including how it maintains and promotes competition and remedies market failure, protects the interests and safety of consumers and supports fair trading in markets, and promotes the economically efficient operation and investment in monopoly infrastructure.

The committee notes the work of the Harper review into competition policy. The work is timely and heralds a new phase in competition policy which will help promote innovation, increase investment and help raise Australia’s productivity levels.

The first public hearing with the ACCC will be held in Canberra on Friday, 26 February 2016 with the full details shown below.

Public Hearing Details

Committee: House of Representatives Economics Committee
Venue: Committee Room 1R4, Parliament House, Canberra
Date: Friday, 26 February 2016
Time: 9.30am to 12.30pm

Webcast: The hearing will be webcast  http://webcast.aph.gov.au/livebroadcasting/

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TODAY Victorian Chamber of Commerce and Industry President Mark Birrell launched the Victorian Chamber Internship Program, which will provide students with the opportunity to attain meaningful 'real world' work experience.

“Business needs work-ready graduates who have had exposure to, and involvement in, a professionally relevant work environment. Research shows that it is difficult for young people to get a job without this experience,” said Mr Birrell.

“This internship initiative by the Victorian Chamber will provide students with vital work experience. It will support the development of a skilled, adaptive and productive future workforce that is aligned to the needs of Victorian business.”

University of Melbourne Vice-Chancellor Professor Glyn Davis AC addressed the audience on the value of giving students the opportunity to acquire work experience to complement their university education.

The Program will see the Chamber invest over $1 million to help place more than 300 interns during a three year period. Participating businesses will meet all workplace employment requirements for the interns they take-on, including payment for work undertaken. These businesses will be encouraged to offer extended employment where possible.

A distinguishing feature of this Program is that the Victorian Chamber will provide the employer with a placement contribution of up to $3,000 to support the cost of each internship. Students employed as part of the Internship Program will be paid award wages and the Victorian Chamber contribution will cover, in addition to wages, other on-costs including superannuation, payroll tax and WorkCover premiums.

The Victorian Chamber’s university and business members strongly support the Program and will annually provide 100 higher education students with paid internships in some of Victoria’s most prominent and well-respected small, medium and large businesses.

Victorian Chamber member businesses will host up to 95 students and the Chamber will itself take five interns annually.

Interns will be engaged as employees and undertake a specific project with a focus on providing a meaningful learning experience, while delivering a tangible benefit to the host business. Placements will generally be for 120 hours, worked over a one month period.

Students will benefit from valuable work experience, networking opportunities and the chance of ongoing employment. Higher education providers will benefit from strengthened relationships with industry and the opportunity for their students to increase their practical skills and improve their employment prospects.

“This initiative will further strengthen the excellent working relationships we have with our business and university members and more importantly provide young Victorians with valuable work-ready skills,” said Victorian Chamber of Commerce and Industry Chief Executive Mark Stone.

The Victorian Chamber of Commerce and Industry is building on its strong record of training and apprenticeship success and business advocacy to promote the value of practical work experience.

The Victorian Chamber’s recent submission to the State Government’s VET Funding Review highlights the crucial need for industry and universities to build closer relationships. This is a significant step in that direction.

“Employers are demanding a greater level of work-readiness from graduates and higher-education providers are seeking to facilitate these experiences,” said Mr Stone.

“We are delighted to be working with business, the higher education sector and students on this significant project to build Victoria’s future workforce.”

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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