Thứ Tư, 15 tháng 5, 2013

Baby bonus: You'll have to get in quick

The government will abolish the baby bonus as part of its path back to surplus in 2016/17.

Baby bonus

Picture: Thinkstock Source: Supplied

DOCTORS are warning of a rush by couples to get pregnant ahead of the scrapping of the $5000 baby bonus.

Obstetricians also fear mums could move forward scheduled caesareans to beat the axing of the payment on March 1.

Retailers have warned they too could suffer as a result of the cut in Tuesday's budget, saying prospective parents would have less money to spend.

Couples hoping to take advantage of the Howard-era baby bonus - slashed to save $1.1 billion - have just nine days to conceive a child if they hope to deliver a baby before the cutoff date.

Wayne's word blog

The Australian Medical Association's Steve Hambleton told News Limited there would be a "surge" in the birth rate in late February.

"If families are considering children and are prepared there is an opportunity, but it is only open for another two weeks," Dr Hambleton said.

"There will be a surge."

Michael Permezel, president of the Royal Australian and New Zealand College of Obstetricians and Gynecologists, said it would be a "pretty busy couple of days" for elective caesareans ahead of March 1.

"Some might change their dates by one or two days but they can't move a week or more," Dr Permezel said.

"I would say it will be a pretty busy couple of days before March 1 and a not so busy couple of days after."

The axing of the baby bonus - introduced by Peter Costello in 2004 - is estimated to affect around 160,000 families in 2014/15. Around 113,000 of those will receive payments under Family Tax Benefit part A of $2000 for a first child and $1000 for every subsequent child to offset the cut.

Retailers said they were expecting a hit to their revenues.

Woolworths' head of supermarkets and petrol, Tjeerd Jegen, said he was concerned about the change.

"Cutting the baby bonus will hit one of our critical customer groups, young families. This puts more pressure on retailers and suppliers to continue to deliver value," he said.

Australian Retailers Association executive director Russell Zimmerman said the baby bonus cut would "absolutely" hurt the sector.

"When a family is expecting a child they have lots of costs, not just for prams and cots but also medical expenses. Without the $5000 payment many will have to scrimp and save meaning less spending in retail stores," he said.

An analysis of 2011 census data by News Limited has identified the baby hotspots around the nation and those families most likely to be affected.

In NSW, Blacktown was the suburb with the highest number of children between 0-1 years old. Of the 1506 children between 0-1 years in that area, around 60 per cent of families earned less than $156,000 making most eligible for the baby bonus which is paid to households earning less than $150k.

In Queensland, Upper Coomera, on the Gold Coast, was the suburb with the biggest number of children between 0-1 years old. Of the 913 children between 0-1 years in that area, around 64 per cent of families earned less than $156,000.

In Victoria, Point Cook, southwest of Melbourne, was the suburb with the highest number of children between 0-1 years old. Of the 1676 children between 0-1 years in that area, around 59 per cent of families earned less than $156,000 making most eligible for the baby bonus which is paid to households earning less than $150k. Point Cook had the highest number of infants in the country.

In South Australia, Mount Gambier was the town with the highest number of children between 0-1 years old. Of the 704 children between 0-1 years in that area, around 53 per cent of families earned less than $156,000.


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BP, Shell raided over alleged price fixing

Oil rig

Source: Supplied

The European Commission has raided the offices of BP, Shell and Norway's Statoil as part of an investigation into alleged price fixing in Europe.

The Commission statement explained that even small distortions of the market could have a ``huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers''.

In a statement, BP confirmed it "is one of the companies that is subject to an investigation...We are cooperating fully with the investigation and unable to comment further at this time.''

A Shell spokesman said: ``We can confirm that Shell companies are currently assisting the European Commission in an inquiry into trading activities.

Norwegian firm Statoil and Platts, the world's leading oil price reporting agency, also both confirmed they were being investigated.

"The suspected violations are related to the Platts' Market-On-Close (MOC) price assessment process, used to report prices in particular for crude oil, refined oil products and biofuels, and may have been ongoing since 2002,'' said Statoil, which is 67 percent owned by the Norwegian government.

The European Commission said officials "carried out unannounced inspections at the premises of several companies active in and providing services to the crude oil, refined oil products and biofuels sectors.

"These inspections took place in two EU member states,'' a statement said, adding that one country in the European Economic Area (EEA) -- of which Norway is a member -- was also involved.

"The Commission has concerns that the companies may have colluded ... to manipulate the published prices for a number of oil and biofuel products,'' it said.

Additionally, the firms "may have prevented others from participating in the price assessment process, with a view to distorting published prices.''

Motoring groups and politicians in the UK have lined up to voice their anger at the allegations.

David Bizley, technical director of car services company RAC, said the claims were "worrying news for motorists'' and vowed his company would campaign for greater transparency in the UK fuel market.

Shadow energy and climate change secretary Caroline Flint called the reports "very concerning'', which if true, suggested "shocking behaviour'' in the oil market.

"When the allegations of price fixing in the gas market were made, Labour warned that opaque deals and relying on price reporting agencies left the market vulnerable to abuse.

"These latest allegations of price fixing in the oil market raise very similar questions,'' added the Labour MP. "Consumers need to know that the prices they pay for their energy or petrol are fair, transparent and not being manipulated by traders.''

Colleague Chris Leslie said any evidence of price fixing would be "a shocking scandal for our financial markets'' while Conservative MP Robert Halfon repeated his calls for a full investigation into alleged cartels and market manipulation.

"Last year, in a debate that I pressed for, parliament voted unanimously for an investigation into the oil market,'' he explained. "These latest allegations underline why that must happen urgently....High oil prices are crushing families across Britain. Motorists are being taken for a very expensive ride.''

Britain's Office of Fair Trading (OFT) ruled out a probe four months ago, concluding there was ``very limited evidence'' that pump prices were being manipulated.

Former Liberal Democrat treasury spokesman Matthew Oakeshott compared the allegations to the Libor scandal, which resulted in several banks paying out huge settlements over claims they manipulated the key interest rate.

Larry Neal, the president of Platts, rejected similar accusations in a letter to the Financial Times earlier this week. "Your comparison of PRA (price reporting agency) activity to Libor is a false one,'' he said.

"While PRAs do obtain information from 'traders who may have a vested interest in moving the markets,' the agencies do not have any such vested interest,'' he added. ``In contrast, our role is providing market transparency.''


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Tony's turn under the fiscal spotlight

Tony Abbott

Opposition leader Tony Abbott will have to provide some answers on how he plans to run the country in his Budget response tonight. Picture: Ray Strange Source: The Courier-Mail

WHEN Opposition Leader Tony Abbott rises to give his formal reply to the Budget tonight, he will feel a greater than usual weight of expectation.

Treasurer Wayne Swan has delivered what will almost certainly be his last Budget.

Unless Labor can pull off a miraculous last minute turnaround, Abbott  is almost guaranteed to be prime minister in a few months.

But there is a lot we do not know about how Abbott would run the country.

The Budget creates a number of questions the Opposition Leader will be forced to answer.

How will he repair the Government's finances? Which spending and saving measures will he keep? Which will he ditch or change? And what other cuts or tax hikes will he use if he rejects savings in the Budget?

Swan has embarked on this line of attack on the Opposition because, let's face it, he has little ammunition left.

But Swan has a point. To be fair to the voters who the polls suggest are soon to elect him to office, Abbott should provide more detail about his plans.

So far the Opposition Leader has kept his cards pretty close to his chest. He has cast doubt over the Government's forecasts and suggested he will wait until the pre-election Budget update before finalising his figures.

Abbott has vowed though to take his time assessing the information available to him before spelling out his decisions - which makes sense given his attacks on the Government for its changing forecasts and broken promises.

Tony Abbott

Opposition Leader Tony Abbott with Joe Hockey and Jamie Briggs with The Little Book of Big Labor Waste. Picture: Gary Ramage

He has foreshadowed a commission of audit to identify areas of waste that can be cut. This is a politically risky vow given the backlash over the Costello audit in Queensland, but it's one that gives a future Coalition government some scope to come up with new savings well into its first term.

Abbott has also accused Swan of laying "booby traps" in the Budget for the next government.

By including big ticket spending plans for several years ahead on school funding, disability insurance and infrastructure Labor has done its best to insert its own agenda into the next two terms of a likely Coalition government.

An Abbott government can of course change some of these. But given its support for a disability insurance scheme and suggestions it will keep the school funding deal if a majority of states sign up, the Coalition could find itself having to justify any changes it makes to ideas that were put up in the dying months of Labor's administration.

On infrastructure, Abbott has already pledged to spend more on some road works, such as the upgrades to Brisbane's Gateway Motorway but he has cast doubt on urban rail projects, such as the city's Cross River Rail.

The Opposition Leader has not yet said whether he would adopt or reject some of the $43 billion in Budget savings, such as hits on corporate tax and cuts to family payments and the Baby Bonus, but there have been some pretty inconsistent messages coming out of his own side on some of these measures.

This pressure seems to be increasing given the political confidence in Coalition ranks.

Some in the National Party oppose cuts to the Baby Bonus, along with Abbott's own generous paid parental leave scheme, because they see the measures as discriminating against stay-at-home mums.

Tony Abbott

Tony Abbott in question time, after earlier telling the Coalition party room that MPs must be disciplined in the months leading up to the election. Picture: Gary Ramage

Others in the Liberal party are angry about the company tax hike that Abbott will impose to fund paid parental leave.

Many within the Coalition believe it is time to dump the Howard government-era payments too.

Opposition treasury spokesman Joe Hockey's declaration of an end to the "age of entitlement" leaves little doubt about his views on middle class welfare.

"Despite an ageing population and a higher standard of living than that enjoyed by our children, western democracies in particular have been reluctant to wind back universal access to payments and entitlements from the state," Hockey said in the speech to the Institute Of Economic Affairs in London last year.

"Ultimately the fiscal impact of popular programs must be brought to account no matter what the political values of the government are or how popular a spending program may be."

Even if you accept his argument that the speech was a general assessment of the fiscal challenges facing developed countries, there are clear implications for Australia's own bulging family payments system.

Abbott will no doubt try to maximise his electoral appeal in the months leading up the September 14 poll but he also needs to be careful not to raise voters' expectations only to disappoint them later.

He says he wants to run a "government which is honest and competent and straight with people".

Voters should be entitled to some of this honesty now.

Steven Scott is The Courier-Mail's national political correspondent.

Email: steven.scott@news.com.au


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Wong stands by baby bonus axing

Strap 4

Labor has released its own animated explanation of the 2013 budget.

FINANCE Minister Penny Wong has defended scrapping the baby bonus while retaining the SchoolKids Bonus.

She said no saving was ever painless, nor free of criticism.

''You've got to make a judgement about how you make savings and how you make room for the reforms of the future,'' she said.

''Someone asked me yesterday what are families getting out of this and I said, well you know what they're getting, they're getting investment in our schools that means we don't keep leaving Australian children behind because of where they live and the circumstances of their families.''

NSW Labor MP Andrew Leigh said the baby bonus had never been a good idea anyway.

Penny Wong

Senator Penny Wong talks over the details of the budget with members of the media during 'Budget lock up'. Picture: Getty Images

''We know that the baby bonus didn't have a big impact on fertility,'' he said.

Mr Leigh said a Melbourne University study put the cost of each new baby induced by the baby bonus at $150,000 a year.

''So this was never good, public policy,'' he said.

''And what we've done by means testing it and bringing the amount down has been in the spirit of the means-tested, targeted social safety net which has served Australia well for decades.''

The SchoolKids Bonus, on the other hand, helped with specific education costs like uniforms and text books, he said.


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All Black sells juice to Asahi for $101m

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View the original article here

Apple boss cooks salary package

Money

Small firm, huge debt

AUSTRALIA'S small businesses are carrying $10.4bn in debt, of which 62 per cent is overdue, new research shows.

Hatchback costs higher than luxury cars

Nissan Micra

THE Australian Automobile Association warns buyers to read the fine print as figures show some budget hatchbacks cost more to maintain than a luxury car.

How success is all down to personality

Richard Branson

RUNNING a successful business is like playing sport, you need to work out your best position and skills. Or in Sir Richard's case be a high-flying space maverick.

Industries where it pays to be the boss

MONEY - BCM - 26\9\2012 - Man and woman in business suits illustrating the tax man coming after you - Photo Steve Pohlner

IF YOU are a manager in a key area, you could be in the box seat when it comes to picking your dream job. Find out which ones are cashing in on the skills shortage.

Gasp store out on the street

Gasp store closed

CLOTHING retailer Gasp is out on the street after a landlord slapped a rental arrears notice on its former South Yarra store.

Problems growing at seller door

Paul Evans

A RANGE of global and home-grown issues is threatening the survival of many grape growers and wine producers, experts warn.

Unlock your business's uniqueness

Tim Seymour-Smith

SOME of the world's biggest corporations have mastered the art of being themselves. Here's how they push their point of difference.

Thousands bid for 24 chocolate bars

Chocolate

THERE'S only 24 in the country and thousands of people are trying to get them - what's so special about these chocolate bars?

Decline in number of business owners

Small business frontage

BUSINESS owners are a dying species, victims of ten years of economic growth, a Productivity Commission report shows.

Get clicking for Mother's Day gifts

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ONLINE shoppers, it's time to get your act together for Mother's Day - deadlines are looming for deliveries to arrive in time.

A test of honesty for foreign workers

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A ''GENUINENESS'' test for foreign workers on 457 visas is being considered by the government as it contemplates expanding a crackdown.

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View the original article here

Bankrupt showbiz mogul owes $7m

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Small firm, huge debt

AUSTRALIA'S small businesses are carrying $10.4bn in debt, of which 62 per cent is overdue, new research shows.

Hatchback costs higher than luxury cars

Nissan Micra

THE Australian Automobile Association warns buyers to read the fine print as figures show some budget hatchbacks cost more to maintain than a luxury car.

How success is all down to personality

Richard Branson

RUNNING a successful business is like playing sport, you need to work out your best position and skills. Or in Sir Richard's case be a high-flying space maverick.

Industries where it pays to be the boss

MONEY - BCM - 26\9\2012 - Man and woman in business suits illustrating the tax man coming after you - Photo Steve Pohlner

IF YOU are a manager in a key area, you could be in the box seat when it comes to picking your dream job. Find out which ones are cashing in on the skills shortage.

Gasp store out on the street

Gasp store closed

CLOTHING retailer Gasp is out on the street after a landlord slapped a rental arrears notice on its former South Yarra store.

Problems growing at seller door

Paul Evans

A RANGE of global and home-grown issues is threatening the survival of many grape growers and wine producers, experts warn.

Unlock your business's uniqueness

Tim Seymour-Smith

SOME of the world's biggest corporations have mastered the art of being themselves. Here's how they push their point of difference.

Thousands bid for 24 chocolate bars

Chocolate

THERE'S only 24 in the country and thousands of people are trying to get them - what's so special about these chocolate bars?

Decline in number of business owners

Small business frontage

BUSINESS owners are a dying species, victims of ten years of economic growth, a Productivity Commission report shows.

Get clicking for Mother's Day gifts

mother's day

ONLINE shoppers, it's time to get your act together for Mother's Day - deadlines are looming for deliveries to arrive in time.

A test of honesty for foreign workers

skilled workers

A ''GENUINENESS'' test for foreign workers on 457 visas is being considered by the government as it contemplates expanding a crackdown.

Taking business to the next level

Peter Demetriou

IN this instalment of BusinessDaily's ongoing series The Pitch, experts assess a promotions business.

Italians too proud to make pizza

pizza

THE country that invented the pizza is suffering from a severe shortage of people to make it.

Childcare centres failing our kids

Childcare

NEARLY half of Australia's childcare centres have failed to meet national quality controls - including kids' health and safety standards.


View the original article here