Scott Morrison is about to unveil a huge change in how Australia counts its public debt

Economists have increasingly been arguing that Australia needs to deploy government investments to support the economy. Andrew Charlton, a former Labor government economic advisor, argued last year that “the world is moving to embrace fiscal policy in almost every country – except it seems Australia.”
Read more at https://www.businessinsider.com.au/scott-morrison-is-about-to-unveil-a-huge-change-in-how-australia-accounts-for-its-public-debt-2017-4#QUkGITtvI5g37kDe.99

Scott Morrison is about to unveil a huge change in how Australia counts its public debt | Business Insider

https://www.businessinsider.com.au/scott-morrison-is-about-to-unveil-a-huge-change-in-how-australia-accounts-for-its-public-debt-2017-4
http://www.smh.com.au/federal-politics/political-news/politics-at-tipping-point-as-one-in-four-voters-flee-labor-and-the-coalition-20170317-gv0a25.html

Economist and former Rudd Government advisor Andrew Charlton said there was some solid economics behind the levy.

“There is no question that it is a grab for cash but this is not an unusual tax around the world,” he said.

“The UK has a bank levy which is 8 basis points and they have two benefits to financial stability and competition.

Budget lacks housing silver bullet

If the federal budget is going to make a difference to housing affordability, you will need a microscope to see it writes Michael Janda.

“First, because it’s applied to the biggest banks it helps to rebalance the market, and secondly because it applies inter-bank funding it encourages banks to fund themselves through more stable and less risky sources.”

As well as the bank levy the Government has announced a raft of measures designed to rein in bad bank behaviour.

It includes setting up a “more accessible and more affordable one-stop shop” for bank customers to resolve disputes with financial institutions, which will be called the Australian Financial Complaints Authority.

All senior bank executives will have to be registered with banking regulator APRA and if found in breach of a yet to be set up “Banking Executive Accountability Regime” they can be deregistered and disqualified from holding executive positions, and stripped of their significant bonuses.

There are also more hefty fines for bank bad behaviour starting at $50 million for small banks and $200 million for large banks.

More stories:

http://www.abc.net.au/news/story-streams/federal-budget-2017/2017-05-10/federal-budget-2017-bank-levy-to-hit-hip-pockets/8512258
http://www.smh.com.au/federal-politics/political-news/politics-at-tipping-point-as-one-in-four-voters-flee-labor-and-the-coalition-20170317-gv0a25.html

In the studio with Andrew Charlton – The Business – ABC News (Australian Broadcasting Corporation)

Three years of record low interest rates coming home to roost.

As the RBA fires its warning shot on rocketing house prices, the Federal Government could be running out of ammunition to tackle affordability.

Andrew Charlton is a leading economist and a former advisor to Prime Minister Kevin Rudd

http://mobile.abc.net.au/news/2017-03-21/in-the-studio-with-andrew-charlton/8374692?pfmredir=sm

Politics at tipping point as one in four voters flee Labor and the Coalition

Australia could face widespread political instability as more than 1 in 4 voters abandon the two-party system.

Disillusionment and disappointment with our major parties is approaching historic highs as Australians follow British and Americans voters and reject traditional politics.

http://www.smh.com.au/federal-politics/political-news/politics-at-tipping-point-as-one-in-four-voters-flee-labor-and-the-coalition-20170317-gv0a25.html