Government

There’s been a lot of talk – and no small amount of bluster – about political risk in Australia over the past month – or more specifically since the announcement of the government’s proposed Resources Super Profits Tax.

According to Rio Tinto Chief Executive Tom Albanese, Australia’s proposed RSPT is currently “my number one sovereign risk issue on a global basis”. That’s a big call from the leader of a company that invests in countries with far less predictable political regimes than Australia’s, including Zimbabwe and Papua New Guinea.

Luigi Palombi explains the secrecy surrounding the latest round of international intellectual property negotiations and what's at stake for Australia

Negotiations over the Anti-Counterfeiting Trade Agreement (ACTA) commenced in January 2008 – with Australia as a participant - under conditions of strict confidentiality. It was only after a barrage of criticism and an almost unanimous European Parliament resolution calling for the draft text to be released that the participating governments agreed to lift their cone of silence and reveal the outcomes of their discussions to the rest of the world.*

Will Clegg focusses on the risks of the Government’s ‘risk-free’ approach to military procurement.

Of all Canberra’s tribes, Defence has recently suffered the harshest of attacks. The 2009 Defence White Paper promised to provide Defence with a lot of new kit, and Prime Minister Rudd promised additional funds to pay for it. Yet the government reneged on this promise ten days after it was made, deferring around $8.8 billion of defence funding when it tabled the 2009 Budget. It is not clear which part of the Defence budget this money has come from, although capital investment has probably suffered the most. Defence is also bearing the brunt of a politicised campaign to restore the fiscal surplus. As Andrew Davies highlighted on the Lowy Institute’s blog, between 2012 and 2013 Defence will have around $1 billion less to spend on major capital equipment, which is the year the government hopes to restore a narrow fiscal surplus of a mere $1 billion.

Shopping list: 100 F 35 Joint Strike Fighters

Earlier than Expected Recovery

Following the turbulence of the past two years and the pronounced slowdown in the pace of growth, the Australian economy has commenced a sound, yet in some respects uneven, recovery. Australia’s proximity to Asia and our capacity to supply bulk quantities of those resources required for their expanding economies have shortened the downturn and now underpin our recovery. That said, in the early days of economic recovery not all sectors have seen immediate improvements in overall demand conditions, including many retail areas, tourism and hospitality, non-residential construction and multi-level residential building. These latter areas in particular have been constrained by difficulties in accessing finance for expansion and new projects.

The Henry Tax Review offers a once in a generation roadmap for tax reform

Let Australia Follow the Leaders

Jamison Group urges the government to take the lead of the US and China in the Energy Industrial Revolution

The Jamison Group, formed as a group of experts in sustainable transport and energy policies to make recommendations to the NRMA, delivered two new reports in February of this year. These reports informed the NRMA’s Alternative Fuels Summit, staged in Sydney in March, which attracted much media and public attention.