23/04/2019

YOUR KEY BOARDROOM BRIEF

Treasury releases PEFO 2019. The Treasury’s Pre-Election Economic and Fiscal Outlook (PEFO), released on 17 April 2019, provides updated information on the economic and fiscal outlook up to the issue of writs for the election. Given this occurred shortly after the release of the 2019‑20 Budget, this PEFO provides reference to information published in the 2019‑20 Budget where it is unchanged. As required, the PEFO sets out: (i) fiscal estimates and projections (including assumptions) for the current and following four financial years; (ii) the sensitivity of updated fiscal estimates to changes in those assumptions; (iii) an updated set of financial statements and summary of the external reporting standards used to prepare the PEFO; (iv) policy decisions taken by the Government since the 2019‑20 Budget and decisions that were taken but not announced at that time (excluding the impact of commitments made in the context of the current election campaign); and (v) an updated statement of risks that may have a material effect on the fiscal outlook.

Petroleum Resource Rent Tax (PRRT) update. Of interest to Directors of oil and gas companies, the Government has released a consultation paper on gas transfer pricing arrangements following its commitment to do so in its final report on economist Mike Callaghan’s PPRT review. The consultation paper seeks comments on the issues identified in the Callaghan Review as well as views on how the rules will work for emerging developments in the industry. Submissions can be made until 14 June 2019. See the Assistant Treasurer’s media release for more information.

ASX releases revised guidance on removal of entities from the ASX. The ASX has released a revised version of Guidance Note 33 (click here for the marked-up version) to: (i) reflect now some of the feedback received in response to its wider consultation on ASX listing rule and guidance note changes (including, for example, to require a special resolution rather than an ordinary resolution to approve a voluntary de-listing); and (ii) confirm the changes to ASX’s long term suspended entity policy will now not take effect until 3 February 2020. See our earlier Boardroom Brief for more on the proposed overhaul to the ASX listing rule and guidance notes.

THE WEEK AHEAD

ASIC consultation on 2018-19 industry levy estimates closes this Friday. Firms have until this Friday to comment on ASIC’s estimated industry sector levies for 2018-19 as well as details on how ASIC has allocated its regulatory costs in 2017-18, which were published last month as part of ASIC’s draft Cost Recovery Implementation Statement (CRIS). Actual 2018-19 levies (once known) won’t be billed until January 2020. ASIC will release the final CRIS in May 2019.

Election 2019. Campaigning recommences in earnest this week after the self-imposed “Easter truce”. Policy announcements this week are expected to focus on economic matters ranging from gas infrastructure in the Northern Territory (ALP) to growth funding for SMES (Coalition).

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