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This Program is Captioned Live.The top stories from ABC News - one of two former State Labor MPs in NSW found to have engaged in corrupt conduct has vowed to clear his name. The State's corruption watchdog has recommended criminal charges be brought against Eddie Obeid and Ian Macdonald. It found the pair acted fraudulently over the granting of mining leases. Ian Macdonald says he will fight to clear his name. Cigarette taxes could be about to rise again. There is Government
speculation the Federal Government will increase the excise on tobacco. The change is likely to be outlined in an economic statement to be released this week. The US soldier who leaked thousands of secret documents to WikiLeaks is waiting to learn how long he will be jailed for. Bradley Manning will face a sentencing hearing after being convicted on 20 counts of espionage. The up
maximum possible sentence adds up to 136 years in prison. The founder of WikiLeaks, Julian Assange condemned the verdict. And the St Kilda AFL club has confirmed that player Ahmed Saad has tested positive to a banned drug. Saad is reported as saying that he inadvertently took the substance. He could be those are the latest headlines from ABC News.

Tonight - the BCA blockbuster action plan. Nine policy areas over 10 years. The urgent message for long-term change.Have a comprehensive review of a very complex tax system which is not terribly efficient. And then do the reforms that wle need for future. I'm Ticky Fullerton. You're watching 'The Business'.

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The BCA is selling a comprehensive plan and a time line, but will a new government buy it? Policy prescriptions and bitter pills. The BCA's Jennifer Westacott talks to 'The Business'. Playing with fire. Risk 'The Business'. Playing fire. Risk and reward doing
business with fire. Risk business with the Chinese
dragon. And - from dad's shed to the world. On-line top gun Kogun playing to win. First to the markets. Momentum stalled ahead of news from the US fed meet j and those GDP figures.

Big business has unveiled its pre-election wish list aimed at encouraging long-term reform. The Business Council of Australia which represents the country's top 100 CEOs says the reforms are needed to avoid diving deeper into debt. It calls for an audit on public spending, tax changes, productivity payments for States and a long-term infrastructure plan. when New South Wales Labor Party's corruption's dominating the headlines the Federal Government would be grateful the Business Council's competing for attention, with its comprehensive reform agenda.What we're saying is, have a comprehensive review of a very complex tax system which is not terribly efficient, and need
then do the reforms that we need for future to make sure that governments and particularly the States have the funding they need to fund the services and infrastructure. Who could argue with that?I think it's quite a comprehensive proposal to increase the prosperity of the big businesses that the BCA speak for. The BCA sets out an agenda for the next decade in nine policy areas, among the proposals in its economic action plan for enduring prosperity, there are calls for a root and branch review of tax reform. Reform of federal/State relations aimed at abolish ing inefficient taxes and red tape, planning for populations and cities, infrastructure, as well as education and workplace
relations reforms. The as education and workplace relations reforms. The lobby
group wants an relations group wants an increase in the group wants GST, and the introduction of land tax on home owners to land tax on home owners to fund a 5% cut in the company tax rate to 25%. It's a cut that doesn't have universal support among business groups.We feel that given most of our members are not incorporated, that it wouldn't benefit us as much as it would big business.There's not much discussion about increasing efficiency in markets some consider uncompetitive because they're dominated by BCA members.Big businesses need us as customers and we need them to supply to but we're not going to auk walk away from the coalition and Woolworths issue. Also on the wish list is a review of penalty rates and the minimum wage. The BCA says the minimum wage is too high, given the current fragile economic circumstances.Economics 101 tells us that if we cut wages, firms have got left incentive to invest in productivity enhance ing reforms, they've got less incentive to invest in new capital equipment. Economics 101 is what the Business Council would say they're on about. I'm joined now in the studio by BCA chief executive and the action plan architect Jennifer Westacott. Welcome.Thanks very much. 93 actions along with their own time frames. It seems to have your paw prints all over it but you had quite an interesting meeting today with a very much non-business stake holders. What happened?Well, we had ACOSS, we had Mission Australia, we had the benevolent society, we had Productivity Commission, we had ... And they weren't saying we can't handle all this, what was their reaction?They were saying is this is really important reform and how do we convince our political leaders that we can't just ignore all these big issues that we need to get our head around and look, there would be people in that room who disagree with aspects of it and we've put this out as a discussion paper. Because we want a national debate on how do we want the country to look in the next 50 years and what are the actions we need to take to get if? Let's get some sacred cows out and let's get some things out of the too-hard basket and get on with them. People were really enthusiastic about that.Let's go to some of the big issues. The reform of revenue sharing between the States and the feds, more money to the States, and possibly per capita GST distribution, can't be done, though, without reform of the tax system. Major reform.Absolutely. This is the point we've tried to make and it's not an easy message to give. So you've got to do some things first. Let's just take the revenue sharing issue. You've got to change the way the GST is distributed. If you say, you know, you can't get reform done across the country while a big stumbling block is this perception of unfairness. To do that you need obviously to compensate the smaller State ps and to make sure they don't form below a floor of administrative efficiency. The third thing you need to do is revenue going to the States
more to make sure there's more revenue more generally. And to do all more generally. And to do of those things, you have to have the budget in have the budget in surplus and you have to have tax reform this is the point we make. You can't just continue if we want to tackle these big challenges to pluck an idea here, pluck an idea there. Tax reform you talk about. You came up with Henry and practically none of it was taken up but the sort of things you're talking about, potentially getting rid of stamp duty, putting on land taxes, no mention of negative gearing?No, we haven't looked at negative gearing. I mean it's a complex area that and we're doing more ... Politically sense think of?Yes. All these issues are politically sensitive. Land tax. All tax reform is sensitive. That's why it's harmed. That's why people don't want to do it. What we hope we've tried to do with our report is to say let's provide a safe haven to have some conversations and national debates about things like tax reform, because if if you want to do the sorts of things that we want as a country, you've got to reform the tax system. How do you feel today, or sorry yesterday it was when Glenn Stevens was saying, you know, he doesn't have a lever for confidence, he was saying. And talking about business confidence in particular I guess . But you got the impression he felt he was now doing the heavy lifting with this expectation that interest rates will fall. And yet you've got the government making these sorts of on-the-hoof tax changes like the FBT changes on cars and the monthly income tax changes which happened several months ago.Let's go into what he said yesterday. He finishes his speech is what we do need We need policy certainty, policy decision tharz headed towards a clear set of goals and we need decisions not to be taken that are going to undermine business confidence. What we've seen over a few years is kind of these incremental decisions that really undermine business confidence. So we're saying in in plan, look you've got to do reform properly. It's hard, it's difficult, it's challenging, it's got to be staged over a long period of time, but if you keep putting it off, like we have with tax reform, like we have with sorting out the distribution between the States, when you get something like NDIS or the education reforms, the so-called Gonski reforms, look how hard it is for the Commonwealth and the States to sort that out, because the big structural issues about how revenue is shared and the fact that the States don't have enough revenue to do the services.Another structural reform you're putting forward is to bring back the productivity payments to the States and I would've thought this would be one of the key things to leverage. When you think about your action No. 4.15, which is to support geographic mobility and that means organising national trade licences regardless of the jurisdiction, now Kirk has been trying to do this for month bs and months and ointments not got very far at all?There's a couple of reasons for that. I mean some of the COAG reforms have been trying to get everybody to do have same thing as opposed to saying, let's actually work out what actually the blockages. So let's get the best practice, the best system as opposed to everyone agreeing on the lowest common denominator. That's actually been one of the problems. The second problem if you talk to the Stateses and there will be different views on this is the Commonwealth doing father knows best kind of lectureing to the States. But the third thing is how do you give incentives to the States? You look back in our history and when we got big reforms done we had the national Competition Commission which did national competition payments to the States, the States in our scenario would submit for reforms, they would get not reward payments but they'd get these productivity payments, they wouldn't become as they have with these reward payments part of the State's expectation of budget. They're there to get something done.Let me move on. Fair Work Act. You're looking at significant changes around flexibility. You said today that you're not looking at a lower minimum wage, but it seems that me that perhaps you were, given that you're looking at the Productivity Commission, examining whether the high minimum wage you say prevents new labour market entrants from gaining initial experience. Are you not looking at putting ...No, not at all. We're simply saying if you want the Productivity Commission to look at workplace relations, you've Productivity Commission things that particularly small business talks about which is when you combine penalty rates and the high minimum wage, it's difficult to employ people and particularly young people when you want to bring them in. All we're saying is you want to bring them in. we're saying is let's look to see whether we're saying see whether that minimum wage is actually an obstacle see whether that minimum is actually an obstacle to
people is actually an people getting entry and
experience in is actually an obstacle to
people experience lot more weight on the Productivity Commission lot more Productivity Commission in all
this?Absolutely this?Absolutely and lot of people have said you've given a big list of things for the Productivity Commission but it's proven itself able to it's proven itself able to do some very difficult things. We have to get these things done as a country. Jennifer Westacott, thank you for joins us. We'll talk to you again.Thank you.? A short departure, David Farley has stepped down as the C o. O of Australian Agricultural Company after three years at the hell. Of the country's biggest cattle company. AA Co has battled the suspension of live exports to Indonesia and drought while trying to build an abattoir in the far north. Chairman Donald McGauchie paid tribute to Mr the
Farley's contribution but said the next CEO would require a different skill set. Mr Farley told 'The Business' while pleased with what he'd achieved he was disappointed he wasn't now able to be effective and AA Co had a challenging and conflicted board. China's business relations with the west have been tested again in recent weeks over the alleged multimillion-dollar bribery scandal engulfing GlaxoSmithKline. While China is a land of great opportunity for business, the Glaxo case highlights the threats as well. There are now more than 40 Australians in Chinese jails, prompting a DFAT warning about the risks of commercial disputes. For some Australian businesses the rise of China couldn't have come at a more critical time.There's two major element there is, there's the opportunity of sales in China and also the low cost manufacturing base and they come together for us. To prove hide an ideal adaptation period to combat Australia's high dollar. This company has seen its sales in China grow by 30% in the past year, thanks to burgeoning middle class. And while the China relationship is working well for them, that hasn't been the case for many Australian hasn't Australian businesses over the years.About a third of the companies we look into don't exist. Another third of the companies we look into are not what they claim to be.If you go and want to just make money and have a quick kill in China you're probably going to end up losing. One thing which we found in Asia, particular think in China as well, is that they will say "yes", they can do it. What you need to be sure is that the infrastructure in place when they say "yes" that they can actually make something happen.The Cooper brothers import hundreds of tractors a year from China. And have had fruitful relations with Chinese businesses for two decades. It comes back to establishing the relationship and sitting down across the table with people and getting a feel for them and they're getting a feel for you and that's never let us down.But others have not had such a smooth run. Four staff from the British pharmaceutical giant GlaxoSmithKline were arrested earlier this month over bribery allegations. And more than 40 Australians are in Chinese jails, at least five of them because of commercial disputes, prompting the Department of Foreign Affairs to recently issue a warning about the risks of doing business in China. The most high profile is Rio Tinto's former employee Stern Hu, jailed in 2010 after being found guilty of accepting bribes and stealing State secrets.It's true the system isn't as transparent as it might be but getting into trouble in the first place is something that you should avoid and the way to avoid it is not to take shortcuts, not to think oh it's China I will get away with it.You need to play by the same rules you play by in Australia. The last thing you want to do is to be making - to be playing by the Chinese rules when you don't understand it. This doctor said that the key to success is to play by the book and establish strong relationships own a long period of time.We've had to find the companies. We've gone that through the knowledge and integration in the region. We haven't been able to do that through finding opportunities off the Internet or the web. It's been a long process. And it's been testing runs in small steps.In other words there are no shortcuts to grab the richs that China offers. To the local bourse now. And a flat end what-to-what is been a decent month for stocks really, Martin Lakos was watching and I spoke to him a short time ago. A positive day but a little short on action, presumably everybody waiting on the key data from the US overnight tonight?You say that, but in fact we were up 50 points at one stage, but only managed to close barely in positive territory up 5 some territory up 5 points. We saw
some profit It's worth putting it in some profit taking by traders. context. The market started this month at context. The market this month at 4710 that's the ASX 200, closing ASX 200, closing up 342 points nearly 7%. It's been a very big month, a very big recovery for the Aussie market. Today we saw the energy sector doing quite well, up .7 of a per cent. Banks and materials flat to down with telcos flat as well. And turnover barely scraping over $3 billion. So certainly activity levels are a bit softer. There's no doubt about that and yes, all eyes on dat that in the urs tonight. If I may just recapture some of that information. We've got the Federal Reserve Open Market Committee meeting today. That starts a two day meeting. We also have US GDP numbers for the June quarter. Expected at 1%. The March quarter was up 1.8, so obviously a slightly softer quarter. Thursday we have Chinese official PMI and also on Friday, we've got the big one, the non-farm payrolls out of the US. And I see back here of course we're now
looking at a looking at a pricing in a 99% chance of a rate looking at a pricing in chance of a rate cut next week?Not only that, marketing are pricing in 2 or 2 and a bit rate cuts before the end of this year. Our prediction of a 2% cash rate is look more and more sensible. It certainly didn't look that way a year ago but it does appear that from that speech by Reserve Bank Governor yesterday the markets you are now taking into account that with benign inflation, weakening of employment conditions, weak business and consumer sentiment, yes, cash rates are definitely on the cards. Tough decisions to be made at BHP with the collapse of the improbable sounding World Potash Cartel.There two are major cartels in the potash world, one in Canada, one in Russia. It's the returningan one that's really come unstuck with a Belarus Potash Corp with two major share holders, one of those companies has gone selling potash outside that agreement. That's caused a stir. The concerns is it might see a flood of potash now from these two protractors and it may well push the price down from $400 a tonne towards 300. If that's the case a number of projects don't become economic yam at - economical at $300 a tonne. It's worth putting in place for BHP the potash division is about 3% of pre-tax earnings. Not huge, but BHP does want to get bigger in that space. So we have to watch that all around. At this stage, no disturbance out of the Canadian cartel, but we certainly watching that. BHP was a bit softer down 31 c to 34.64 today. A lot to digest this week. Thank you for joining us.Thanks Ticky, always a pleasure. To the other major movers on the local share market:

Consumer electronics entrepreneur Rosalang Kogan is piling up the firsts. He is the first Aussie to book a seat on Richard Branson's Virgin Galactic spacecraft. From a backyard business to a $600 million on-line powerhouse, Tracey Kirkland talks to the man behind the brand.

He built his first computer at age 10 and was a millionaire by 24. Now 30, Ruslan Kogan is on his way to becoming a household name.It took me 30 years to become an overnight success.Kogan started dad's garage six years ago. dad's garage six years From that, in 2011-12, From that, in turned over $150 million. Last financial year, that skyrocketed to around $600 million.Kogan is growing so fast that we struggle to rent an office, because everyone wants a three or five year lease. The moment we move into an office a few months later we've outgrown it. At the moment we're operating out of two offices, we've got a few warehouse and distribution facilities around the world. But you know, at the moment we're growing faster than we've ever grown.We're at least three or four times bigger now than we were one year ago. It's a long way from 19889 when his parents migrateed from Russia to Melbourne. This self-confessed tech geek says he learnt the hard way how to make money.There's the golf balls that I used to sell when I was 10 years old, then I had a car wash business, then I had a web site design business through high school and a mobile phone repair business then there were bits and pieces I'd sold on eBay through uni. So I'd always been wheeling and dealing and looking at the marketplace and saying, well, what can I change, what can I invent to bring value to the consumer? With no consumer? backing, Kogan the on-line company began by selling televisions, using a direct sales model.Typically in retail, products go from factory to an agent to an exporter to an importer to a distributor and then to the retailer. And every middle man along the way wants their 10 to 20% cut. We've cut all of that out and we're the manufacturer direct to consumer and that's how we've really differed and that's our competitive advantage in business. While consumers seem to like the idea, he says the to share his vision.The banks are very risk averse. They don't like taking risk and they go for proven things like bricks and mortar rather than revolutionary things that are changing industries like on-line retail and the Kogan business model so we don't have any external funding from banks. He now boasts a 3% hold on the lucrative consumer technology market, and he says that's sparked a retail war with larger traditional competitors who dominate the $10 billion space.We're taking away massive market share from Australia's big retailers like JB Hi-Fi and Harvey Norman. When I spoke earlier about companies that are resting on their laurels, those two companies would have to be part of that trend. In 2012, Kogan expanded into the UK and now operates in 15 other countries. And six months ago it launched into the highly competitive mobile phone plan market, and has already attracted more than 100,000 customers.It's definite that we've had a massive impact on the Australian retail landscape. But like I said, we're just getting started and we're ramping up business to have an even bigger impact. This tech entrepreneur may have big ideas, but it seems the sky's the limit. He's the first Aussie to book a seat on Richard Branson's Virgin Galactic flight. A brief look at other business stories making news. The controversial Shree Minerals mine in Tasmania's Tarkine region has been given the green light. The Federal Environment Minister has fast tracked the $20 million iron ore mine after legal advice. The initial approval was branded a fatal error and overturned by the federal court because it ignored the impact of the endangered Tasmanian devil. It's the first of six mines slated for the region. And he's Breitling highest flying billboard. Jetman Eve Rossy has flown in tan damage with a Boeing B-18 Flying Fortress in his first US flight. The Swiss daredevil had no trouble keeping up with the 70-year-old heavy bomber, and it's not the first time the Jetman's flown with World War II planes. Last year he made history flying in formation with British veterans. And before we go a look at what's making business news in overseas newspapers. Britain's 'Daily Telegraph' says top UK economists believe Britain has turned the corner and is about to reaches cape velocity, the level at which a recovery is self-sustaining. And London's 'Financial Times' says in a hither to un published story the bank of England played a vital role in one of the darkest episodes in Central Bank history, selling gold looted by the Nazis after their invasion of Czechoslavakia in 1939. That's 'The Business'. You can watch the show Monday to Thursday at 8.30 each night on ABC News 24 as well as after 'Lateline' on ABC1. I'm Ticky Fullerton. Thank you for watching. Goodnight.

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Tonight on The World - voting is under way in Zimbabwe's presidential election. Will Robert Mugabe finally lose his grip after 33 years in power? Mugabe, it's over. Mr Mugabe declares he'll surrender power if he loses the election, but opponents are not convinced. If you lose, then you must surrender to those who have won. He doesn't believe that he can actually be voted out of office. Also ahead - it's early morning in the US State of Maryland where US soldier Bradley Manning will face a sentencing hearing after being convicted on 20 counts of espionage. Criminal charges are flagged for two former Labor ministers. They say they'll challenge the damning findings made against them by the corruption watchdog. In Cairo, thousands of Egyptians are defying the army's orders by continuing to protest on the streets. Our correspondent interviews a Muslim Brotherhood spokesman wanted for treason. Hello, I'm Andrew Geoghegan, thanks for joining us. thanks for joining just after 1pm in where voting just after 1pm in Zimbabwe,
where voting is under way in a fiercely contested where voting is under way in fiercely contested presidential
election that's where voting is under way in a election that's already been election overshadowed by allegations overshadowed by voting rigging. President Robert voting rigging. Robert Mugabe's Zanu-PF Party has Robert Mugabe's has denied accusations it has tampered with the electoral role. Morgan Tsvangirai is making his third attempt to unseat the president. Mr Mugabe says he'll step down after 33 years in power if he and his party lose the election. In a moment we'll go to Zimbabwe, but first this report from the BBC. It's still a very zwieded country, but for once, a peaceful campaign as Zimbabwe hurtles towards the polls. Mugabe, it's over. Zanu-PF, please go. President Robert Mugabe has ruled Zimbabwe for 33 years and at the age of 89 seems still determined to cling to power. But would he accept defeat gracefully? REPORTER: Mr President, if you lose, are you prepared to hand over power to the victor and stand down? You either win or you lose. If you lose, then you must surrender to those who have won. If you who have lost must also have won. If you win, surrender to you and this is it. But that wasn't the case in 2008. That election saw a