Monday, June 08, 2015

Abbott reverts to reds under beds of 1950s

A Muslim community leader has accused Tony Abbott of using the citizenship discussion like the “reds under the bed” communist debate of the 1950s in order to win the next election.

Silma Ihram, of the Australian Muslim Women’s Association, has also warned that some Muslim Australians could end up like the Rohingya people of Burma, left stateless or “shipped off to Cambodia”.

She has joined the growing chorus of criticism by some government ministers and backbenchers, legal experts and community groups, over attempts to increase executive powers to revoke citizenship of suspected terrorists.

Ihram told Guardian Australia that some Australian Muslims feel “numbed by the progress and speed of the government” on national security laws, such as the measure to strip the Australian citizenship from dual nationals suspected of terrorist offences on the approval of the minister rather than the courts.

Ihram was also critical of Labor, after Bill Shorten agreed “in principle” with the bill which has yet to be released but is expected to come before the parliament in the next fortnight.

Ihram, a former Islamic school principal, said in her experience the Coalition’s handling of the national security measures had soured relations between the government and the Muslim community. 

She said allowing citizenship to be stripped at the minister’s discretion was a great concern, given the government’s “heartless” response to the plight of the Rohingya refugees.

“Some members of Muslim community [in Australia] could end up like Rohingya –stateless ... we could be the next lot shipped over to Cambodia,” Ihram said.

“What the government is doing is to make this whole scenario of fear. Yes we have potential for [a terrorist] problem, no one is denying that. But the debate is had like the ‘reds under the bed’ so that [Abbott] can come out with solution and be voted back in.”


Sunday, June 07, 2015

Parliamentary Budget Office and Negative Gearing

The Greens have released Parliamentary Budget Office (PBO) modelling that shows the Government could save $3 billion in four years by abolishing negative gearing.

The tax break allows investors to claim expenses for rental properties and reduce tax paid on any other income.

The Government has already ruled out winding it back, but Labor has left the door open to possible changes.

The PBO estimated the proposal would increase Government revenue by $42.5 billion over the period to 2024-25.

Greens senator Scott Ludlam said scrapping the measure was "long overdue".

"I don't think it's fair that low and middle income taxpayers should be subsidising property investors and that's really at the heart of why we're making this proposal," he said.

Senator Ludlam said in addition to improving the budget bottom line, scrapping negative gearing would also improve housing affordability.

"Having such concessionary tax treatment of housing has meant that effectively we are subsidising housing investors to bid up the price of property," he said.

"That has priced first-home buyers completely out of the market, particularly young people, and that's what has been contributing to pushing up rent.

"So this is one thing we could do to help a lot of people at the same time."

He said the change would only affect new investments.

"Those who have already got their properties set up that way would be able to keep it," Senator Ludlam said.

"But we don't think it should continue to into the future."

Initiative could combat housing affordability: Ludlam

Senator Ludlam said the $3 billion raised could be spent on combating housing affordability and housing the homeless.

"I think it's one of those things we could do, spend money on housing supply and cool the housing supply and actually get people off the social housing waiting list," he said.

"Because quite clearly, negative gearing has failed if it was ever about housing supply.

"Most of the tax concessions from negative gearing and capital gains tax exemptions, as you'd expect, are going towards people who can afford property investment in the first place and that's overwhelmingly people in upper income brackets."

He said he believed it was possible to change the Government's mind on whether to scrap the tax break.

"Labor has said some quite encouraging things in the last couple of months and the Government is so incoherent, ruling things in and out and changing their minds, that I think anything is possible," he said.

"We think now that we have these costings in hand that it's time to feed this into the tax white paper and I think that it should absolutely be on the table."


Saturday, June 06, 2015

Schwarzenegger fingers climate deniers

Arnold Schwarzenegger is apparently on a mission to terminate the myth that protecting the environment hurts the economy.

The actor and former politician is in Australia to promote his new film Terminator Genisys, the first a planned new trilogy for the popular movie franchise.

During his stint as governor of California between 2003 and 2011, Schwarzenegger passed the first emissions trading scheme in the United States.

He has said all countries, including Australia, need to lift their game when it comes to tackling climate change.

“In order for us to be successful the whole world has to work together ... Australia, Austria, the US – everybody has to work together,” Schwarzenegger told Channel Ten’s The Project on Friday night.

Schwarzenegger said after California introduced tough new environmental laws the state’s economic growth well outpaced the national rate.

“The thing that you always hear when you do that is ‘this will hurt the economy’,” he said.

“Going green and protecting the environment did not hurt the economy, it’s a bunch of nonsense.” 

Australia’s prime minister, Tony Abbott, has consistently criticised the former Labor government’s carbon tax, which has been repealed. 

He has called the tax destructive and said his government would “never do anything that damages the economy”.


Thursday, June 04, 2015

Australia says no to investor rights to sue in leaked Trans-Pacific trade chapter

Leaked TPPA trade chapter: Australia says no to investor rights to sue, fair trade groups demand release of all text

June, 2012

"The leaked investment chapter of the Trans- Pacific trade agreement (TPPA) being negotiated between the US Australia, New Zealand and six other Pacific countries contains special rights for foreign investors to sue governments if a law or policy harms their investment," Dr Patricia Ranald, Convenor of the Australian Fair Trade and Investment network said today.

"However, the leaked chapter shows that Australian Government has kept to its policy and is refusing to apply the right of investors to sue governments for damages in Australia. We support the government's policy, but believe it would be more consistent if the government simply opposed the inclusion of this provision in the agreement," said Dr Ranald.

"The right of investors to sue was excluded from the US Australia Free Trade Agreement, and more recently was not included in the Malaysia-Australian free trade agreement. We have long campaigned against this provision, because its inclusion in other agreements has allowed corporations to sue governments over health and environment legislation. The Australian Government's policy has been reinforced by its battle against the current attempt of Philip Morris tobacco company to sue the Australian government damages over its tobacco plain packaging legislation under the provisions of an obscure 1993 Hong Kong Australia investment agreement," explained Dr Ranald.

"Overall, the leaked chapter still gives increased rights to foreign investors. It limits the ability of the government to regulate levels of foreign investment, and does not permit governments to require foreign investors to contribute to the local economy by buying local goods or transferring technology. The chapter applies to all forms and areas of investment, unless specifically exempted by each government. These restrictions could tie the hands of government to regulate in areas like foreign investment in farmland, the expansion of the coal seam gas industry, or in some areas of taxation," explained Dr Ranald .

"These issues should be debated publicly, not secretly negotiated in trade agreements. Currently, the text of trade agreements is kept secret until it is signed by Cabinet, and only then released publicly and to Parliament. We call for the release the negotiating text of the agreement, and the release of the text of the whole agreement for public and Parliamentary debate before it is signed by Cabinet", said Dr Ranald.

ACTU: Weak economy delivers little hope for unemployed

3 June 2015

Australia’s slowing economic growth is well below the level needed to tackle unemployment and see new jobs created.

Today’s national accounts figures show economic growth of just 2.3 per cent in the year to March, which is below average and below the level needed to start pushing down unemployment.

Australian households are also feeling the pinch and have less money to spend, with the key measure of household income falling by 0.2 per cent in the year to March.

Business confidence in the economy is also low with spending on capital goods falling, which doesn’t bode well for reducing unemployment.

Today’s figures all highlight the weakness in Australia’s economy and the need for the government to take action to stimulate the economy and create jobs.

Unemployment has now been at or above 6 per cent for almost one year – since a month after the Abbott Government came into office.

The Abbott Government needs to deliver a genuine plan for jobs, not just tax cuts to small business which will do little to create employment, as the budget itself notes with unemployment forecast to rise.

The National Accounts today show:

  •          The Australian economy (real GDP) grew by just 2.3% in the year to March 2015
  •          Real domestic income fell by 0.2% over the year to March 2015
  •          The terms of trade continue to plummet, falling by 11.4% over the year.
  •          Business spending on capital goods (gross fixed capital formation) fell 3.4% in the year to March

Quotes attributable to ACTU Secretary Dave Oliver:

“Unemployment has been at or above 6 per cent for almost twelve months, yet today’s economic growth figures show there is little prospect of new jobs being created.

“The national accounts show our economy is weak which is putting Australians out of work.

“Australian households are feeling the pinch – we need a plan from the government to stimulate the economy and turn things around.

“The government needs to change direction and support wages growth and investment in jobs and skills in order to boost the economy.”