Australia's newly reelected government said Tuesday that its promise to slash income taxes might be delivered late but would not be broken as it seeks to stimulate consumer spending, revive a flagging economy and repair relations with China, its most important trading partner.
Prime Minister Scott Morrison chose the latest possible date to call an election that on Saturday delivered his conservative coalition a surprise victory.
But the timing means he probably won't be able to recall Parliament to pass the tax cuts before July 1 — the date he promised during the election campaign that the lower tax rate would take effect.
Treasurer Josh Frydenberg said passing the legislation, which would reduce the annual tax bill of 10 million Australians by 1,080 Australian dollars ($740), is the government's first priority when Parliament resumes.
Frydenberg could not say when the law would be passed, but said media reports that the new tax rates might not come into effect until July 1 next year were wrong.
The tax break was outlined in April in the government's annual budget blueprint for the next fiscal year, which starts on July 1.
"Let me be very clear: The tax relief outlined in the budget will be delivered to millions of Australians," Frydenberg said.
However, the ruling coalition will not hold a majority of seats in the Senate, so the government will need the support of the center-left Labor Party opposition or minor parties to pass the tax law legislation.
Because of the weakening economy and persistent low inflation, Reserve Bank of Australia Governor Philip Lowe suggested on Tuesday that the central bank board was likely to reduce its benchmark interest rate below the current record low 1.5% when it next meets on June 4. The rate has not changed since August 2016.
In more concerning news for an Australian economy that has grown for 28 years without a recession, a university study released on Tuesday found that Chinese investment in the country fell by 50% between 2017 and 2018.
The Australian National University research showed Chinese investment fell from AU$9.6 billion ($6.6 billion) in 2017 to AU$4.8 billion ($3.3 billion) last year — the lowest level in the five years since the university began monitoring Chinese investment. Researchers said the decline was in line with global Chinese investment trends.
Frydenberg said Australia was susceptible to the trade tensions between China and the United States, Australia's biggest source of foreign capital.
"It's very clear that the Australian economy is facing some economic headwinds — economic headwinds globally as trade tensions rise between China and the United States," Frydenberg said. "But the fundamentals of the Australian economy are sound."
In better economic news, the government's reelection contributed to a AU$33 billion ($23 billion) surge in the stock market on Monday to an 11-year high, in part because of expectations of a better business environment and tax cuts.
Analysts see Morrison's re-election as a new opportunity to reset Australia's relationship with China, which suffered under his predecessor, Malcolm Turnbull. Beijing protested when Turnbull announced legislation in 2017 to outlaw covert foreign interference in domestic politics.
Chinese companies were blocked from buying crucial Australian infrastructure and Chinese technology giant Huawei was banned from involvement in the rollout of Australia's 5G telecommunications network on security grounds.
Morrison was thrust into the government leadership last August after colleagues in his conservative Liberal Party lost confidence in Turnbull. Morrison has since been kept busy uniting his government, which was bitterly divided over Turnbull's ouster in a ballot of lawmakers.
Michael Fullilove, executive director of the Lowy Institute for International Policy, a Sydney think tank, said the surprise election result had given Morrison a mandate to reshape the relationship with China.
"His international role essentially begins this week because for the first nine months, he was necessarily distracted by domestic issues. I think he was seen as a stop-gap leader internationally, but now he has a mandate, he has immense authority within in his party," Fullilove told Australian Broadcasting Corp.
"He has inherited a hawkish policy from Prime Minister Turnbull, but that suit doesn't really seem to fit him," Fullilove said. "He's a more commercially minded, more pragmatic person. He and Foreign Minister (Marise) Payne have tried to repair the relationship with China in recent months."
As vote counting continued on Tuesday, the government appeared likely to have as many as 78 seats in the 151-seat House of Representatives, where parties need a majority to govern.
The government will likely have within its ranks the first Chinese-Australian woman elected to Parliament, Gladys Liu.
Morrison led a minority government of 74 lawmakers into the election, with the opposition firm favorites to win.
DETROIT (AP) — The Oakland Athletics no longer have to wonder where they'll play the next few seasons. That won't make the long goodbye any easier.
The A's reacted to the announcement that this will be their last year in Oakland with a mixture of sadness and relief.
“At least as a player, you know where you’re headed,” outfielder Seth Brown said Friday before a game against the Tigers in Detroit. “There’s obviously a lot of moving parts, a lot of stuff we’re not privy to, so it’s just been kind of a waiting game on our end. Where are we going to go? Where are we going to be? So I think just having that knowledge -- at least we know where we’re going to be playing next year.”
Vivek Ranadivé, who owns the Triple-A Sacramento River Cats, and Oakland Athletics owner John Fisher announced Thursday that the A’s will temporarily relocate to West Sacramento's Sutter Health Park for at least three seasons. The A's are moving to Las Vegas after a new ballpark is constructed.
The River Cats, who are affiliated with the San Francisco Giants, will continue to play at the same facility.
Fisher was unable to reach an agreement with Oakland city officials on extending the lease at Oakland Coliseum, which expires at the end of this season. The A's have played in the city since 1968.
“There's direction now, which we've talked a lot about,” Oakland A's manager Mark Kotsay said. “We've got time to kind of reflect on what this really means from an organizational standpoint, the history that we've had in Oakland, with this being now the final season. There's a lot of emotion that goes behind this.”
It will not only cause some upheaval for the players and staff but also members of the organization that work behind the scenes.
“At the end of the day, we know where we're going to be for the next three seasons after the finish this year and that in itself gives a little bit of stability,” Kotsay said. “At the same time, in the present, it's challenging in certain ways to think about the finality of this organization in Oakland.”
Sacramento will be a much smaller environment to house a major league team. Ranadivé said the River Cats venue currently seats 16,000 when counting the stands, the lawn behind center field and standing room only.
First baseman Ryan Noda is concerned with the facilities. He's hopeful that significant upgrades will be made, much like the Toronto Blue Jays did at Buffalo's Triple-A facility. The Blue Jays played at Buffalo's Sahlen Field in 2020 in 2021 during the COVID-19 pandemic.
“New walls, new dugouts, new locker rooms — everything they needed to become a big league stadium,” said Noda, who played some games in Sacramento as a minor leaguer. “As long as we can do something like that, then it'll be all right. But it's definitely going to be different than playing in stadiums that hold 40,000 people.”
Kotsay is confident the upgrades will occur.
“I know it will be of major league baseball quality,” he said. “It's has to be of major league baseball quality. I know the Players Association will make sure that takes place, as they did in Buffalo.”
For the rest of this season, the A's will have to deal with small home crowds and disappointed fans.
“We’re sad for the fans, the diehard fans, who always come to our games, always support us, always support the boys wearing the jersey,” Noda said.
AP MLB: https://apnews.com/hub/mlb
Sacramento Kings owner Vivek Ranadive, center, shakes hands John Fisher, owner of the Oakland Athletics, before the start of a news conference where Fisher announced his team will leave Oakland after this season and play temporarily at a minor league park, during a news conference in West Sacramento, Calif., Thursday, April 4 2024.The A's announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
John Fisher, owner of the Oakland Athletics baseball team, announces that his team will leave Oakland after this season and play temporarily at a minor league park, during a news conference in West Sacramento, Calif., Thursday, April 4, 2024. The A's announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
Sutter Health Park, home of the Triple A team Sacramento River Cats, is shown in West Sacramento, Calif., Thursday, April 4, 2024. The Oakland Athletics announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
Oakland Athletics manager Mark Kotsay walks to the dugout after making a pitching change during the eighth inning of the team's baseball game against the Cleveland Guardians in Oakland, Calif., Sunday, March 31, 2024. (AP Photo/Jeff Chiu)
