The Shake-up: This Week in Business
Easter is only days away, but there is no sign of anyone slowing down just yet. It’s already looking like a busy week, with implications for the local, national and international economies.
Canberra’s hotels, bars and restaurants let out a collective groan this morning as Prime Minister Malcolm Turnbull stated his intention to use the Double Dissolution triggers available to him, and therefore effectively launching a 14-week election campaign.
QT Canberra's Capitol Bar & Grill
These campaigns are never good for the ACT’s accommodation and hospitality industries; however, some are more prepared than others. QT Canberra’s Director of Food & Beverage, Tarn Morrow, was reasonably upbeat. “We’ve worked really hard to pick up some key business for the second quarter of the year, so should be a little protected.”
The Dollar Shifts
Last week, we talked about predictions the Aussie dollar could reach US$0.80 by the middle of the year. This was given a boost over the weekend as the currency hit a nine-month high of US$0.7641 on Friday.
The interesting part is that as forex buyers gamble on the dollar returning to loftier heights by the middle of winter, most admit that it is likely to return to the Reserve Bank’s target range of US$0.65 to US$0.70 by the end of the year.
Senator Arthur Sinodinos on ABC's Insiders
Over the weekend, there was another series of scene-setting interviews with key members of the government to begin setting out the case for another cut in the company tax rate.
This time being issued across the board, the rate will come down to 28.5% on the way to 25% by 2025. It’s a hard sell, given there have been plenty of issues around multi-nationals paying nowhere near the current rate.
Also, voters will be unlikely to welcome any further assistance to the biggest business they engage with on a monthly basis: The banks.