ABS Release 30/09/2009

Retail Trade, Australia, Aug 2009

CURRENT PRICES

• The seasonally adjusted estimate increased by 0.9% in August 2009. This follows a revised decrease of 0.9% in July 2009 and a decrease of 0.8% in June 2009;
• In original terms, Australian turnover decreased 1.1% in August 2009 in comparison to July 2009. Chains and other large retailers (which are completely enumerated) decreased 1.5% and the estimate for ’smaller’ retailers decreased 0.3%. Australian turnover increased 5.3% in August 2009 in comparison to August 2008;
• In seasonally adjusted terms, Food retailing (+1.8%), Household goods retailing (+0.9%), Department stores (+2.4%) and Cafes, restaurants and takeaway food services (+1.9%) had an increase in August 2009. Other retailing decreased 3.0% and Clothing, footwear and personal accessory retailing had no change in percentage;
• In seasonally adjusted terms all states, except the Northern Territory (-0.7%), had an increase in August 2009. States with the largest increase were Queensland and Tasmania (both +1.4%), South Australia (+1.1%) and New South Wales (+0.8%).

• Education refunds can still be claimed by non-lodging tax clients by lodging the individual tax return and completing label T6 or lodging NAT 72621 form.
• The ATO will be monitoring businesses’ recording of opening stock values before equalling the closing stock value of the year.
• For tax debts with less than $25,000, tax payers can utilise self help numbers with ATO to negotiate repayments or deferrals on 137226 for businesses and 132865 for individuals.
• Most dividend information is now available on the tax agents’ portal.
• ATO ID 2009/107 provides an explanation of the meaning ‘not at risk’ in relation to the claiming of research and development concessions, according to which even though a company may have a high prospect of being paid for R & D activities and expenditure, it does not mean it is ‘not at risk’ and could not claim the R & D expenditure at the higher rates.
• ATO ID 2009/103 provides an explanation for GST on maintenance costs charged by a charity to residents of a retirement village. According to which maintenance costs is free from GST, where the charity provides the accommodation, however, other services such as laundry, personal care bus service and hairdressing are not GST Free.
• In the case of QLD Harvesters Pty ltd vs Commissioner of Taxation, the Tribunal found that the taxpayer had not taken care in determining if invoices provided to it by contractors were valid tax invoices and as such penalties were applied and claims for GST disallowed.
• In the case of Waverly Council vs Commissioner of Taxation, the tribunal found that the fees charged by Council on credit card payments of Council fees should be treated for GST purposes the same as the original fee, eg if the fee is rates and not subject to GST, then neither are the credit card fees charged subject to GST.

THE Australian share market closed firmly in the black today after strong gains across the board.

The rise at the bourse came on the back of a buoyant US lead and higher commodity prices.
The benchmark S&P/ASX 200 index was up 75.7 points, or 1.62 per cent, at 4753.10, while the broader All Ordinaries gained 70.3 (1.5 per cent) at 4747.20.
On the Sydney Futures Exchange at 1617 AEST, the December share price index contract was 70 points higher at 4758 on a volume of 23,928 contracts.
National Australia Bank rose 62 cents to $31.22, ANZ put on 40c to $24.73, Commonwealth Bankjumped $1.06 to $52.10 and Westpac was up 33c at $26.43.
BHP Billiton rose 89c (2.4 per cent) to $37.99, while fellow mining giant Rio Tinto was up $1.02 (1.74 per cent) at $59.67.
Among energy stocks, Oil Search rose 15c at $6.35, Santos gained 28c to $15.05 and Woodside Petroleum lifted 10c.

ABS Release 25/09/2009

Australian National Accounts: Financial Accounts, Jun 2009

Total credit market outstandings of the domestic non-financial sectors at 30 June 2009 was $3,399.4b, an increase of $125.1b from the previous quarter. Demand for credit during the quarter was $77.6b and valuation increases were $47.5b;

Demand for credit was up $34.1b from the previous quarter, driven by increased demand by households (up $18.7b), national general government (up $15.5b) and private non-financial corporations (up $2.4b). This was offset by a decrease in demand by state and local public non-financial corporations (down $2.7b);

You can go to this web site to obtain a form to complete on behalf of clients or employees or yourself to transfer super held by the ATO to the appropriate superannuation fund of your choice - http://ato.gov.au/superfunds/content.asp?doc=/content/39987.htm

Family Tax Benefits can now be claimed through Centrelink Medicare Australia offices or via the Family Assistance Office web site www.familyassist.gov.au – you must register or be registered to receive FTB.

New free software provided by the ATO can be accessed over the web or by CD that offers assistance to businesses starting and closing to determine whether they are tax ready www.ato.gov.au/TaxReady

Standard Business Reporting will be introduced by the government over the next few years.  It is intended to assist businesses adopt simple methods of reporting that will allow them to report financial information, tax information and BAS information in a simple and faster manner.  More information can be obtained from the web site www.sbr.gov.au.

The Australian share market has ended lower as investors sought more evidence of improving company performance to justify the recent run to a 12-month high.

At the close, the benchmark S&P/ASX200 index was down 35.9 points, or 0.8 per cent, at 4677.4, while the broader All Ordinaries fell 37.9 points, or 0.8 per cent, to 4676.9.

Among the sectors, material fell 1.5 per cent, energy shares lost 1.3 per cent, but financial  rose 0.2  per cent.

Everyone’s looking for the next catalyst which will drive the market higher.

BHP declined 70 cents, or 1.9 per cent, to $36.85, and Rio fell $1.26, or 2.1 per cent, to $58.72.

National Australia Bank fell 40 cents, or 1.3 per cent, to $30.02, Commonwealth Bank dropped $1.04, or 2 per cent, to $50.26 and Westpac reversed 52 cents or 2 per cent to $25.65.

ANZ bucked the trend, gaining 2 cents, or 0.1 per cent, to $23.81.

ABS Release 17/09/2009

International Merchandise Imports, Australia, Aug 2009

AUGUST KEY POINTS

ORIGINAL ESTIMATES

In original terms, the August 2009 merchandise imports were $15,502m, a decrease of $1,213m (7%) on the revised July 2009 merchandise imports which were $16,715m.

PRELIMINARY BALANCE OF PAYMENTS GOODS IMPORTS

Preliminary analysis shows that goods imports (debits) on a balance of payments basis has decreased by $658m (4%) in seasonally adjusted terms from $16,844m in July 2009 to $16,186m in August 2009. Intermediate and other merchandise goods fell $728m (10%) with fuels and lubricants down $592m (24%), consumption goods fell $305m (6%) while non-monetary gold rose $289m (90%) and capital goods rose $85m (2%).

Recent information provided by the ATO in conjunction with their new compliance regime includes facts namely:

• There are 9.6 million salary and wage earners of which 1,400 earn more than $1 million per annum;
• 4.7 million have investments;
• 1.5 million receive government pensions or benefits;
• Around 73% use tax agents to lodge tax returns;
• The ATO data matches around 408 million transactions reported by third parties;
• Deductions for work expenses have increased by 11% since 2006;
• The ATO conducted some 5,900 audits last year;

The Australian share market closed marginally weaker on light trading volumes amid profit-taking, although companies with exposure to the United States gained ground on expectations of an improving economy.

At the close, the benchmark S&P/ASX200 index was down 15.8 points, or 0.3 per cent, at 4677.4, while the broader All Ordinaries lost 9.6 points, or 0.2 per cent, to 4684.1.

Among the sectors, material lost 1.3 per cent, financial dropped 0.4 per cent, while energy stocks inched up 0.1 per cent.

Trading was thin with market holidays across the region, including Japan, India and Singapore.

Analysts said investors were taking a break after substantial inflows last week, which were boosted by the rebalancing of the FTSE World index, in which Australia’s weighting rose marginally from 3.47 per cent to 3.49 per cent.

The FTSE re-weighting allowed a lot of fund managers to move in size into the market, so a bit of a dampener on markets over the early part of this week is anticipated as it gives the fund managers an opportunity to see whether markets do pull back

The Australian share market has ended lower, taking a breather after two days of strong rallies, but analysts see scope for further gains.

At the close, the benchmark S&P/ASX200 index was down 21.7 points, or 0.5 per cent, at 4693.2, but still managed to chalk up a rise of 2.1 per cent over the week. The broader All Ordinaries fell 20.3 points, or 0.4 per cent, to 4693.7.

Among the sectors, material fell 1.8 per cent, energy stocks slipped 0.2 per cent, but financial stocks rose 0.4 per cent in a late reversal.

Some profit taking was bound to happen. In the short term there is more scope for economic stimulus to remain, and given continued weakness in the US dollar, the commodities and currencies story (driven by economic news flow) may continue to drive market sentiments.