Joyce adamantly denies rumours of a GST increase
Senator Barnaby Joyce, in response to rumours of a GST increase in the near future, has said that “there is no change to the GST. There is not even a concrete plan of something to consider in regards to changes to the GST.” Despite Treasurer Scott Morrison ruling out giving the states any of the extra revenue from a GST increase, Mr Joyce said the states, as benefactors of the GST revenue that is generated, should be behind any future increase. It is argued that Mr Joyce’s stance on the issue is politically the safest option, considering the fact that Nationals MPs are among those on the Coalition backbench warning of a revolt should the government proceed with the tax increase. Click here for full article.
Tesla’s stock still showing no signs of recovery
Tesla’s stock has been in a free fall since the beginning of the year, down 28% from $240 to $173, and is breaking through technical support levels. On August 7th last summer, Tesla analyst Adam Jonas raised the stock price target from $280 to $465 (stock was at $243), claiming that an analysis of the company’s shared mobility shows a lot of potential to add value to the company. This week the target was lowered to $333 in response to a slower take-off and lower expectations surrounding the Model 3, lower valuation for Tesla Energy, and increased competition in the electric, shared and autonomous vehicle market in the past four to five months. Click here for full article.
AGL retreats from gas production projects in response to falling prices
Energy provider AGL, one of Australia’s largest energy retailers, has made the expensive decision to quit gas exploration and production in response to the collapse in oil and gas prices, long lead times for developing the projects, and lower than expected production volumes for Gloucester. Included in the list of projects to be dropped is the controversial Gloucester coal seam gas project in northern NSW which was estimated to supply more than 15 percent of NSW’s gas needs. AGL also plans to sell its natural gas assets in Moranbah, Silver Springs and Spring Gully, all in Queensland. The company’s retreat from gas production projects has come as good news for activist groups who have criticised them in recent months. They argued that the Gloucester project threatens drinking water, dairy, horticulture and tourism operations in the area. Click here for full article.
Bleak forecast on Australia’s future housing prices as capital outflow from China continues
Goldman Sachs chief economist, Tim Toohey, has claimed that a flood of money out of China in the last six months means that it may be too early to call the top of the property market. There has long been uncertainty about the effect of accelerating private sector capital outflows, however it is predicted to elevate already high house prices. Mr Toohey said that current capital outflows from China is “probably the biggest private sector movement out of a country since World War II so the idea that it won’t be distortive in this part of the region is too optimistic”. This statement comes as a warning considering a decline in Australia’s employment growth and migration likely won’t be able to keep up with the increasing oversupply of housing in Australian cities. Click here for full article.