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Money Uni savings may cost economy $12bn: report

16:17  07 may  2018
16:17  07 may  2018 Source:   msn.com

Comment: Debt is not the risk; it’s the economy, stupid

  Comment: Debt is not the risk; it’s the economy, stupid The real measure of the budget's worth will not be in how the Coalition deals with what has been a passive windfall but in how it chooses to spend our money. After all, the government’s decision (like that of its predecessors) not to index tax rates to inflation means that as much as $52 billion would come to the Treasury in the next four years simply because of bracket creep – inflation pushing a bigger proportion of wages into higher tax calibrations.

A two-year funding freeze for higher education to save the budget billion could cost the economy $ 12 billion over the next two decades, modelling shows.

That would translate to between US billion and US$ 12 billion in annual cost savings for those banks, according to a joint analysis According to the Accenture and McLagan report , blockchain technology would bring significant savings for many of the banks’ so-called middle- and back-office processes.

Funding will be kept at 2017 levels until 2020 to save $2 billion.© AAP Image/Paul Miller Funding will be kept at 2017 levels until 2020 to save $2 billion. The economy could lose billions over the next two decades because of a freeze in university funding designed to save costs, new modelling shows.

Universities expect 10,000 fewer students to be enrolled this year because of the two-year freeze announced by the federal government in December.

Funding will be kept at 2017 levels until 2020 to save $2 billion.

But Universities Australia says the short-term savings could cost the national economy up to $12 billion over the next 20 years.

Even best-case scenario research they've commissioned predicts a $6.9 billion hit on gross domestic product and $2.2 billion in lost tax revenue.

On for young and old: Last-minute details show this is really shaping up as an election budget

  On for young and old: Last-minute details show this is really shaping up as an election budget The Coalition will move to re-energise support among baby boomer voters in tonight's budget with a multi-billion dollar package aimed at improving retirement lifestyles and people's ability to continue working late in life.  Younger voters will also get some sweeteners with some measures that will make it easier to consolidate retirement savings accounts. They'll also see the benefits of the tax cuts being extended to low and middle-income earners, which ABC reports will be worth around $40 a month for those qualifying for the greatest amount of tax relief.

Uni savings may cost economy $ 12 bn : report | Daily Mail Online. Content displayed may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner.

Savings Bring Recovery The idea that savings help out in a tough economy isn't an earth-shattering revelation. But you might be surprised to find out just how much a high savings rate can speed up economic recovery.

"It's a simple equation - less university funding means fewer skilled graduates, a hit to labour market productivity, and less tax revenue for the government," UA chief executive Belinda Robinson said.

Modelling by Cadence Economics says every Australian missing out on university qualifications costs the national economy $471,000 and causes the government to lose out on $152,000 in tax revenue.

Their research takes into account workforce productivity where fewer workers have university qualifications and reduced individual earning potential.

"These findings demonstrate that, even in the most conservative scenario, the short-term fiscal savings to government are offset by the long-run cost of reduced tax receipts - and are substantially less than the long-run cost to the economy," the report states.

'Drastic action': Telstra slide continues as analysts warn on dividend .
Telstra's share price has fallen another 3 per cent on Tuesday morning as analysts warn the dividend could be cut in 2019. Australia's biggest telco warned on Monday that competition for mobile and internet customers would leave it struggling to meet its full-year earnings guidance, sending its shares down 5 per cent to a seven-year low of $3.04. The decline continued on Tuesday morning, with the share price falling another 3.29 per cent to $2.94 by 11.15am.Citi analyst David Kaynes said Telstra needed to take "quick, drastic action in order to lower the earnings decline and minimise the next dividend cut".

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