Today's News - Wednesday 25 November 2020
Today's News - Wednesday 25 November 2020
Our Backyard
The Victorian Government will offer stamp duty discounts and spend close to $50 billion on other concessions, subsidies and projects in a bid to get hundreds of thousands of people back to work and breathe new life into a state economy battered and bruised by the coronavirus pandemic.
The Government has set a goal of creating 200,000 jobs by 2022 and 400,000 by 2025, focusing on those hardest hit by the disruption wrought by COVID-19, including women, young people, older workers and those without formal qualifications.
- To help it achieve its goal, the Government has committed $250 million to subsidise the wages of at least 10,000 workers. Businesses will get a tax credit of 10 cents for every dollar they increase taxable Victorian wages. The measure will last for two years and the Government expects it will support 9,400 people to return to work.
- To stimulate the property market, the Government will waive up to 50 per cent of stamp duty on newly built or off-the-plan homes valued at up to $1 million until June 30 next year. Existing homes will be eligible for a 25 per cent waiver. A $500 million Victorian Homebuyer Fund will be launched to help people who do not have a 20 per cent deposit buy homes. The fund will contribute to the purchase price in exchange for equity in the property.
- The Budget commits billions to building projects, including $1.9 billion for school infrastructure, $5.3 billion for new public housing dwellings and $1.46 billion to redevelop the Southbank arts precinct, including building NGV Contemporary, a new branch of the National Gallery of Victoria dedicated to contemporary art and design. The Budget also contains $2 billion to build new hospitals and upgrade existing ones.
- At least $150 million of this will go towards employing women, and $50 million of this will support women over the age of 45, in recognition of the additional challenges they face.
- $2 billion "Breakthrough Victoria" fund to support research and innovation
- $200 million to fund upgrades to suburban health services
- $120 million for regional health infrastructure projects
- $12.1 million for initiatives to unlock job opportunities in suburban and regional communities with high unemployment
- $121 million to meet growing demand for in-home delivery of health services such as dialysis, chemotherapy and palliative care
- $20 million to improve town centres in Altona, Broadmeadows, Boronia, Frankston, Lilydale, Melton, Noble Park, Reservoir and Tarneit
- $100 million for low interest loans for councils to build community infrastructure such as dog parks and bike trails
- $20.2 million to continue negotiations for a treaty with Victoria's First Nations people
- $66 million to acquire new land and plan for new community hospitals in in Cranbourne, Pakenham, Torquay, Eltham, Point Cook and the City of Whittlesea
- $272 million to build new law courts in Wyndham
- $26.8 million to upgrade Sunshine law courts
Overall, the coronavirus recession will leave state and federal governments with more than $1.4 trillion in net debt by 2024 and budgets that will struggle to get back into surplus without higher tax collections and unprecedented levels of economic growth.
According to SEEK’s latest employment report, while job ads grew by 8.5 per cent nationally from September to October 2020, the big movers were trades and services, healthcare and medical, and hospitality and tourism.
In-demand roles included:
- Trades and services: Automotive trades, labourers, electricians, hair and beauty services, welders, boiler makers, technicians, carpentry and cabinet making, gardening and landscaping.
- Healthcare and medical: Physiotherapists, occupational therapists and rehabilitation, nurses (aged care and general medical), psychology, counselling and social work, dental and medical administration.
- Hospitality and tourism: Chefs, cooks, wait staff, bar and beverage staff, management, kitchen and sandwich hands, housekeeping and front office and guest services.
Australia's university sector is now facing stiff competition for the 2021 intake from overseas rivals such as Canada and the United Kingdom, which are already allowing the return of offshore students.
New research by international education firm IDP Connect has underscored the risk to Australia's $40 billion international student industry of failing to provide a clear timeline for the resumption of on-campus learning.
The Morrison government has ticked off on federal environmental approvals for the $3.6 billion Narrabri gas project.
Environment Minister Sussan Ley said the NSW project, proposed by gas giant Santos, would be subject to conditions ensuring the protection of regional biodiversity and groundwater.
Qantas is outsourcing 2,100 ground worker jobs such as baggage handling and cleaning to cut down costs.
Accounting firm EY has been working on an in-house bid on behalf of Qantas workers to save their jobs.
There are union fears that safety and security could be compromised if the work gets outsourced, but Qantas says outsourcing is safe.
Moreover, Australia's largest airline will require passengers to be vaccinated against COVID-19 before they will be allowed to travel on an international flight.
Honda has been accused of intimidating an Australian dealership into accepting a “grossly undervalued” compensation package, after abruptly cancelling its contract.
The Japanese car giant terminated a five-year deal with its largest-selling Australian franchise, Astoria, as it pushed ahead with plans to scale back its number of showrooms in Australia.
The Melbourne-based dealership had been in continuous operation for more than 50 years, but is now fighting for its survival after what it described as the “shock” termination.
It employs about 100 staff, some of whom have been at the franchise for over 30 years.
In a submission to a senate inquiry last month, Astoria said Honda offered a compensation package that “grossly undervalues the actual loss we will suffer”. It claimed a separate accountancy group found it was entitled to four times the offered value.
The compensation package did not cover redundancies caused by the contract termination.
Astoria also alleged it was intimidated to accept the deal with threats of money-sapping litigation.
NSW Health has released an urgent warning after an alarming spike in gastro cases in dozens of the state’s child care facilities.
Hundreds of children and staff have fallen ill, leading to health authorities pleading with parents to keep their kids at home if they are unwell.
More than 480 children and 120 staff succumbed to gastroenteritis in October across nearly 60 child care centres, NSW Health’s executive Dr Richard Broome said.
A 4500km conveyor belt of scorching weather stretching from Broome all the way to the country’s south east could prove “dangerous” in the coming days as Australians have yet to acclimatise to the blistering conditions following a wet and cool spring, a climate scientist has warned.
The all-time record for Australia’s hottest ever November day could be broken with the mercury rising close to 50C.
There’s also a possibility the Sydney and Adelaide CBDs could top out at 40C. Sydney’s west is expected to easily get into the 40s on both Saturday and Sunday.
Trains will stop running across the Sydney Harbour Bridge for the first 10 days of 2021, when the 88-year-old wooden rail-deck on the iconic structure is torn up and replaced with concrete.
Buses will replace trains on the T1 North Shore and Western Line between North Sydney and Wynyard from January 1 to 10. All suburban train lines, except for the Eastern Suburbs and Illawarra lines, will be impacted by the planned maintenance.
World News
The US federal agency responsible for officially signing off on the presidential transition process has recognised Joe Biden as the "apparent winner" of the US election.
The Administrator of the General Services Administration, Emily Murphy, made the decision after President Donald Trump's efforts to overturn the vote in key battleground states failed.
The moves clears the way for the start of a transition, despite Mr Trump's refusal to accept the results of the election.
https://www.abc.net.au/news/2020-11-24/gsa-tells-biden-transition-can-begin/12914330
Thai social media was awash with images of large inflatable yellow ducks after they were brought along to the student-led protests against the Government and the monarchy last week.
Rubber ducks have a history as an anti-corruption symbol.
Initially, they were meant as a bit of a joke — a pool toy would be the only way to access the blocked-off Parliament, which sits on a riverbank in Bangkok.
But when the water cannons came out, spewing fluid laced with blue dye, protesters quickly repurposed the ducks as shields.
Prosecutors in Qatar say they have identified the mother of a newborn baby abandoned in an airport bathroom last month.
The mother has been described as an "Asian national" and a "convict", who fled the country after allegedly giving birth and dumping her newborn in a rubbish bin in an airport bathroom.
She has been charged with attempted murder and authorities say they have started the process of trying to arrest her. She faces up to 15 years jail if apprehended.
China has launched an ambitious mission to bring back rocks and debris from the Moon's surface for the first time in more than 40 years.
Chang'e 5 — named for the Chinese moon goddess — is the country's boldest lunar mission yet.
If successful, it would be a major advance for China's space program, and some experts say it could pave the way for bringing samples back from Mars or even a crewed lunar mission.
The rocket launched just after 4.30am on Tuesday. The mission's goal is to drill into the Moon and bring back 2 kilograms of rock.
The lander will spend the equivalent of about 14 Earth days on the Moon.
Elon Musk's year of dizzying ascents hit a new apex on Monday (US time) as the Tesla co-founder passed Bill Gates to become the world's second-richest person.
The 49-year-old entrepreneur's net worth soared $US7.2 billion to $US127.9 billion ($175 billion), driven by yet another surge in Tesla's share price. Musk has added $US100.3 billion to his net worth this year, the most of anyone on the Bloomberg Billionaires Index, a ranking of the world's 500 richest people. In January he ranked 35th.
Covid-19
Queensland will allow residents from Greater Sydney to enter the state from December 1, in an easing of coronavirus border restrictions.
Visitors from New South Wales will no longer be required to quarantine for 14 days when entering Queensland.
Ms Palaszczuk said there would be an update on travellers from Victoria tomorrow.
The decision comes after NSW met Dr Young's criteria of 28 days without untraceable community transmission.
NSW Premier Gladys Berejiklian has admitted she should have self-isolated and cancelled meetings after having a coronavirus test last week.
After months of urging the people of NSW to "do the right thing" the Premier has conceded to breaking her own rules about isolating.
Yesterday morning Ms Berejiklian said she took a COVID-19 test in her parliamentary office on State Budget day last Tuesday, but continued to meet with colleagues while waiting for the results.
She said she had started to lose her voice and decided to have the test out of an "abundance of caution".
A negative result was returned in around two hours.
South Australia has recorded one new case of coronavirus but authorities say it is not linked to the Parafield cluster.
The man aged in his 20s is in a medi-hotel, and is a close contact of an overseas arrival who previously tested positive to the virus.
Two returned travellers in a medi-hotel have now been linked to SA's Parafield cluster.
The couple were previously believed to have acquired COVID-19 overseas.
There are now 29 cases linked to the Parafield cluster.
Health Minister Greg Hunt says the Oxford-AstraZeneca vaccine results have opened up a pathway to a "fully safe Australia", with the first doses set to be distributed to healthcare workers and the elderly by March.
Speaking today after Oxford-AstraZeneca released preliminary results showing an average efficacy of 70 per cent, with one dosage option giving 90 per cent protection, Mr Hunt said he had spoken to the country's two most senior health officials, Brendan Murphy and Paul Kelly.
Experts say it is a cheaper option and easier to transport compared to some of the other vaccine candidates.
The world's largest rubber glove maker has temporarily halted production at more than half of its factories while it screened and quarantined its workforce after more than 2,000 employees tested positive for COVID-19. Of 5,767 workers screened for coronavirus, 2,453 have tested positive.
Top Glove's shares were down as much as 7.5 per cent by late Tuesday morning after the Malaysian Government said 28 factory buildings would be shut in phases. Top Glove has temporarily stopped production at 16 of its 28 facilities.
The company, which commands a quarter of the global latex glove market, has racked up record profits this year on skyrocketing demand for its products and protective gear, thanks to the pandemic.
Despite Tuesday's slump, its shares have surged more than fourfold this year.
https://www.news.com.au/world/coronavirus
Property
The owners of Mascot Towers are now suing the developers and builders of Peak Towers, the property next door, for $15 million, alleging excavation work during the construction of the building caused the cracks in Mascot Towers.
The apartment owners are now suing the developers of the building next to Mascot Towers.
Opal Tower residents are also suing their building's developer over defects.
https://www.abc.net.au/news/2020-11-24/mascot-towers-apartment-owners-still-living-in-limbo/12911968
Victorians who buy a new home before next July will have their stamp duty slashed by up to half, under plans to kickstart the real estate market.
The plans unveiled in Tuesday’s state budget apply to homes valued up to $1 million.
A waiver will apply of 50 per cent on stamp duty for new homes, and 25 per cent for existing homes.
Contracts must be entered into between Wednesday and June 30 next year under the tax relief plan.
Swiss hospitality brand Movenpick and Singaporean hospitality group Global Premium Hotels have signed a hotel management agreement to open Australia’s first Movenpick hotel from mid-January.
The 221-room hotel on Hobart’s Elizabeth Street, one of the capital’s key heritage streetscapes and close to the Hobart waterfront, is aimed at attracting both corporate and leisure travellers.
Accor Pacific chief executive Simon McGrath believes the leisure travel sector will be the first group to start travelling again after COVID-19.
Mr McGrath said the 10 million Australians who travelled overseas annually, coupled with more than 600,000 returning residents, meant there was a big need for luxury, upscale hotels in Australia.
Accor expects that this presents a strong opportunity for growth for the domestic travel industry, particularly for luxury and premium hotel brands.
Accor is planning more locations for Movenpick, which was established in the 1940s, across the Pacific. It believes the Movenpick premium, classic brand will quickly gain recognition for its culinary and service excellence in the Australian hotel market.
Markets
GetSwift’s plans to delist from the ASX and redomicile in Canada have hit a major hurdle, with the company receiving a letter from Treasurer Josh Frydenberg saying that doing so would be “contrary to the national interest” due to the company’s ongoing legal matters.
Mr Frydenberg said he was mulling an order prohibiting GetSwift from redomiciling under section 67 of the Foreign Acquisitions and Takeover Act.
Float prospect Fantastic Furniture is hoping to list at 11 times its net profit, taking its market value to between $430m and $530m.
It is understood that the terms are yet to be finalised, but the pricing is due to be set this week at around those numbers.
Fantastic Furniture, which is owned by Steinhoff International subsidiary Greenlit Brands, has plans to list through Macquarie Capital and Credit Suisse as early as this year.
Fantastic Furniture is forecast to generate $650.7m of sales for the 2021 financial year, up from $550.7m in the 2020 financial year to June.
Earnings before interest, tax, depreciation and amortisation is expected to be $76.7m, up from $61.7m in the 2020 financial year to June.
Net profit for fiscal 2021 is expected to be $47.6m, up from $38.5m for the 2020 financial year.
Australian shares have lifted to a fresh nine-month high after the University of Oxford and AstraZeneca announced the results of their COVID-19 vaccine trials.
The ASX 200 index gained 83 points (+1.3pc) to close at 6,644, its highest level since late February.
By 5:00pm AEDT, the Australian dollar was slightly higher (+0.5pc) at 73.23 US cents.
The 10 worst-performing stocks on the market were all gold miners, including Silver Lake Resources (-9.4pc), Perseus Mining (-7.6pc), Evolution Mining (-8.4pc) and Northern Star Resources (-8.9pc). On the flip side, the best performers were coal, oil and gas stocks like Beach Energy (+8.2pc), Whitehaven Coal (+6.9pc) and Origin Energy (+5.2pc).
Banks and mining giants also boosted the market, including Commonwealth Bank (+2pc), Westpac (+2.6pc), NAB (+2.6pc), ANZ (+3.1pc), BHP (+3.4.pc), Rio Tinto (+2.2pc) and Fortescue Metals (+2.7pc).
Kicking off a trading week shortened by the Thanksgiving holiday on November 26, the Dow Jones index jumped 328 points (+1.1pc) to 29,592 points.
The benchmark S&P 500 closed modestly higher (+0.6pc) at 3,578 points.
The tech-heavy Nasdaq lifted (+0.2pc) to 11,881.
European markets were not as exuberant, with Britain's FTSE (-0.3pc) and Germany's DAX (-0.1pc) down slightly.
Brent crude had jumped (+3pc) to $US46.54 a barrel.
Spot gold dropped (-2.5pc) to $US1,823.90 an ounce.