2017 — Australia’s year in review
A constitutional crisis of their own making
The second half of 2017 saw Australia’s federal politics dominated by a widening constitutional crisis around the eligibility of a number of senators and MPs over the issue of dual citizenship. Although some resigned for their oversight, a number of parliamentarians were referred to the High Court to determine their legitimacy. Several senators lost their positions.
Shanghai’d in Canberra
In the final sitting week of Parliament for the year the Federal Government introduced legislation to curtail foreign — read Chinese — influence in Australian politics. The catalyst was questions around political donations by high profile Chinese businesspeople to both sides of politics and their alleged attempts to influence Australian Government policies.
The taxing times behind us … and yet to come
The Government sought to collect the Goods and Services Tax (or GST) on low value online purchases from overseas. It proposed that overseas platforms should be made responsible for the collection of the GST on purchases worth less than AU$1,000. The new law is due to take effect July 2018.
A Senate inquiry into corporate tax avoidance was extended. The Australian Tax Office (ATO) has announced a crackdown on multinational technology giants that it says have been avoiding AU$5 billion in taxes.
Banking on an inquiry
After a year of trench warfare to keep a royal commission into the banking sector from being established, the Federal Government announced in November that an inquiry would proceed. The backflip followed growing concerns that some Nationals would vote with Labour and the Greens for an inquiry. The Royal Commission will also look into the insurance and superannuation sectors.
A less cryptic way forward
Bitcoin, Etherium and other cryptocurrencies took a step closer to legitimacy after the Australian Government announced plans to regulate blockchain technology and cryptocurrencies. The Australian Stock Exchange (ASX) recently announced it would use blockchain to track its transactions, giving legitimacy to the technology that supports cryptocurrencies.
Super legislation’s super delays
The last week of Parliament saw the government’s much vaunted changes to the AU$600 billion superannuation industry taken off the table. The changes would have increased the supervisory powers of regulators, forced super funds to appoint independent directors and caused the not-for-profit funds to disclose their administrative costs. The Government was unable to secure the support of cross-bench senators needed to pass the legislation.
Bolshie Regulators, Shareholders and Consumers
This year saw a rise in activist regulators and calls from the public and politicians to monitor the nation’s ‘C’ suites and boards for compliance on a range of areas from taxation to diversity obligations and responsible marketing. Scrutiny of corporate Australia from both internal and external forces continues to intensify.
Careful what you wish for
The Australian property market has started to cool after several years of hyper growth. For the first time since 2013 prices have flattened. If housing construction is impacted a ripple effect through the economy is possible. The Reserve Bank may have to cut interest rates further.
Not even a lump of coal for Christmas
Australian banks refused to fund Adani’s proposed Carmichael coal mine in the Galilee Basin and the Queensland Government reneged a commitment to support the project, saying it would veto an AU$1 billion loan from the Northern Australian Infrastructure Facility (NAIF). The company’s troubles worsened when it emerged former Labor Foreign Minister Bob Carr had lobbied Chinese investors against funding the mine.
We all get to tie the knot
A considerable amount of ink and air time was consumed debating same sex marriage after the Federal Government announced a postal survey to determine the issue. Australians voted in favor of legislation.
Yes, Malcolm; there is a Santa Claus
The year ended on a higher note for Prime Minister Malcolm Turnbull and the Coalition. The Mid-Year Economic and Fiscal Outlook (MYEFO), released on 18 December, allowed the Federal Government to crow about appearing to rein in debt.
Quote of the Year
“And the High Court will so hold” — Prime Minister Malcolm Turnbull told Parliament that legal advice to the Government was that the High Court would find Deputy Prime Minister Barnaby Joyce was not in breach of Section 44(i) of the Constitution. The Court ruled Mr. Joyce was, forcing a by-election in his seat of New England. Mr. Joyce renounced his New Zealand citizenship and comfortably won the seat with a favorable swing.
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