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The good times are roaring back for the Australian economy | TICKER VIEWS

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Bourke St Mall

Anyone else remember the good old days when it was exciting to wait expectantly for the Federal Budget to be released wondering what surprises good and bad there would be?

Well, 2021/2 was pretty much leaked/announced in the days prior and again last night was as boring as bat (even for us Chartered Tax Advisors!) to tune in to…

Big spending, big debts and no surprises which was pretty much a certain in an election year and a continuing pandemic recovery.

Melbourne's Bourke St Mall

Tax cuts were left in place, as was superannuation guarantees and the ATO has been held back in pursuing struggling businesses. Steady as she goes, keep the businesses running, employing and the people spending. 

YOU MIGHT ALSO LIKE – “We are better placed to meet the economic challenge”: Australia’s Federal Budget

“Net debt will increase to $617.5 billion or 30.0 per cent of GDP this year and peak at $980.6 billion or 40.9 per cent of GDP in June 2025

This is low by international standards. As a share of the economy, net debt is around half of that in the U.K. and U.S. and less than a third of that in Japan. 

Consumer sentiment is at its highest in 11 years. Business conditions reached record highs and more Australians are in work than ever before”

One thing they didn’t harp on about (and what saved us last time during the Howard years) is it appears, we are on the cusp of an extended resources / mining boom as the global economy fires back up on inflated incentives of all kinds.

Australia's iron ore helping the budget

We Australians really have won the lottery of life

Macro, there seems to be a growing diversion in economic realities. We either go bust on debt, or we go super boom and hopefully deflate debt.

It is getting harder to see a middle ground between the two polar opposites unless of course its decades (doldrums) of low inflation/interest rates and there’s no will or policy for that!

Housing nearly always gets some love with first home owners and single parent guarantees to help people get on board.

Superannuation with further good news

  • The super contribution works test for those aged 67 to 74 is to be abolished from 1/7/22
  • Downsizer super contributions restrictions from 1/7/22 get even easier also with an age restriction reducing to above 60 the take up of this will be far more attractive.
  • The $450 minimum per month super contribution is being removed from 1/7/22 a good thing for casual workers a pain for micro employers (administration).

The question has to be asked, why wait to 1/7/22 for these measures? 

Biggest news once again is in supporting business

Mr Frydenberg announced the government would be extending temporary full expensing and temporary loss carry-back (to the year 2019) for an additional year until 30 June 2023.

Sydney's CBD is attracting people back

Further, Mr Frydenberg said the government will deliver more than $16 billion in tax cuts to small and medium businesses by 2023-24 with around $1.5 billion flowing in 2019‑20.

This, he said, “includes reducing the tax rate for small and medium companies, from 30 per cent in 2014‑15 to 25 per cent from 1 July 2021″.

Well, that’s the 2021/2 highlights and there are plenty of other lesser budgetary gems that can all be found here: https://budget.gov.au/index.htm or contact the team at CIA tax.

Business

Reports of discrimination against pregnant and disabled workers at Amazon

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Amazon is under fire for allegedly discriminating against some of its pregnant workers and workers with disabilities

New York’s Division of Human Rights filed a complaint against the company with Governor Kathy Hochul announcing the move on Wednesday.

Amazon is being accused of failing to provide these workers with the correct pay, forcing them to take unpaid leaves of absence.

There are multiple reports that the company did not follow guidelines with its workers, one pregnant worker was initially given approval to avoid lifting packages over 11 kilograms, but was then made to lift heavy items anyway by a manager.

Amazon did not provide this worker with accommodation after they were injured and instead placed them on indefinite unpaid leave, according to the complaint.

The company is being examined for its failure to accommodate these workers, and allowing managers to override safety recommendations.

Such actions are against breach New York’s Human Rights Law which protects pregnant and disabled workers from discrimination within a workplace.

Amazon is now being urged to “pay civil fines and penalties to the State of New York” and to fix its discriminatory practices.

Amazon’s spokesperson has denied its wrongful conduct saying the company offers “the best available options to accomodate” such employees.

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New York man sues McDonalds for burgers not looking like photos on ads

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Those late night McDonalds ads with the crispy lettuce and soft bun, makes the mouth water…. but one New York man has beef to pick

The man says McDonalds and Wendy’s have misleading adverts that are unfair and deceptive.

He says make their burgers look much bigger than they actually are.

In a proposed class-action lawsuit, he is seeking $50 million in damages for himself and other similarly duped customers.

The chains did not comment immediately on the suit.

Rival Burger King was hit with a similar lawsuit in Florida in March, by the same law firms representing New Yorker Justin Chimienti.

While Burger King has yet to respond in court, an amended complaint shows that more unhappy customers have signed onto the suit.

According to complaints quoted in the BBC, the companies’ adverts are “unfair and financially damaging consumers as they are receiving food that is much lower in value than what is being promised.”

The “actions are especially concerning now that inflation, food, and meat prices are very high and many consumers, especially lower income consumers, are struggling financially,” they add.

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U.S. stocks plunge – markets have biggest daily drop in 2 years

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U.S. markets have had their biggest daily drop in almost two years, as investors evaluate the impacts of higher prices on earnings and the possibility of monetary policy tightening

The S&P 500 dropped by 4 per cent, while the Nasdaq fell the most amongst other major benchmarks.

Meanwhile, retailer Target down was down more than 20 points in its worst performance since 1987, and Apple and Amazon.com both slid.

The U.S. dollar rose against all Group-of-10 counterparts, except the yen and Swiss franc.

The S&P is slowly emerging from its longest slump since 2011, but rebounds are fragile amid tightening policy, the war in Ukraine and lockdowns in China.

It comes as Federal Reserve Chair Jerome Powell warns U.S. central bank will raise interest rates until there is “clear and convincing” evidence inflation is in retreat.

Looking to other parts of the world, and Europe saw new-vehicle sales shrink for a 10th month in a row.

Over in the United Kingdom, inflation rose to its highest level since Margaret Thatcher’s reign 40 years ago.

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