Masters of Professional Accounting: Article Summaries and Analysis

This assignment provides summaries of five different finance-related articles. The first article discusses the declining trend in home prices due to reduced mortgage demand. The second analyzes the avocado market, noting increasing supply and potentially lower prices. The third examines ANZ's efforts to improve customer satisfaction following misconduct issues. The fourth reports on labor support for fast-tracking tax cuts for small to medium-sized businesses. Finally, the fifth article explores Westpac's consideration of passing the bank levy onto customers and staff. These summaries offer insights into current financial and economic trends. Desklib provides a platform for students to access similar solved assignments and past papers.

Running head: MASTERS OF PROFESSIONAL ACCOUNTING
Masters of Professional Accounting
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Table of Contents
Summary 1.......................................................................................................................................2
Summary 2.......................................................................................................................................2
Summary 3.......................................................................................................................................3
Summary 4.......................................................................................................................................4
Summary 5.......................................................................................................................................5
References........................................................................................................................................6

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Summary 1
Article title: “House price falls to continue as new loans dry up”
The article summarizes trend in home prices. It states that price of house is facing a weak
phase following a decline in demand of new mortgages. There is a sharp decline in the number of
home loans in recent years. The decline in home loan far exceeds the expected rate of 2.1
percent. It is on a tract of declining beyond 10 percent. It is weakest phase of property market
since the hit of global financial crisis. The Commonwealth Bank expects further deflationary
pressure in the dwelling market.
The surprising aspect in the housing price trend is the steep fall in loans for owner
occupied houses. This category of loans declined by more than 4 percent in a month and over 10
percent in a year. Increase in the mortgage rate and imposition of stricter regulation drives out
many investors from the market (abc.net.au 2018). In the month of August, investment in
construction declined by 7.6 percent.
The financial stability review of RBA however has denied existence of any credit crunch
in the housing market. The strict regulatory lending standard however benefits non-bank lenders.
More than 9 percent borrowing in the owner occupied lending marker is now captured by lenders
outside authorized banking organization.
Summary 2
Article title: “Avocado growers say prices have hit their peak while supply continues to
skyrocket”

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The article describes the current status of avocado market. At present, the avocado
market experiences a rapid increase in both price and supply of avocado. There is a good news
for avocado lovers that the fruit for which they are willing to pay the most are likely to get
cheaper followed by the increasing supply. The demand and supply forces can well explain the
scenario of avocado market. Demand for avocado has already been reached to the highest level.
It is the seasonal factor that contribute to a decline in price of avocado. Despite plateaued
demand of avocado, supply if avocado has kept on increasing in this year. Given the demand, an
excess supply result in a sharp drop in avocado prices. The farmers of avocado expect the
declining trend in avocado will continue in the future because of plateaued avocado demand.
Price of avocado declined by nearly 35 percent each tray.
Supermarkets can consider the current market status of avocado as an opportunity for
making higher profits. In the phase of very high price, profit margin of supermarket gets
squeezed. In the summer months however avocado still remains dearer. The avocado industry
however is expecting future expansion in demand that will absorb the excess supply balancing
price.
Summary 3
Article title: “ANZ boss Shayne Elliott urges disgruntled customers to email him directly
This article is about the recent strategy of ANZ to increase customer satisfaction by
accomplishing their expectation. Shayne Elliott, the CEO of ANZ is of the view that any
financial or emotional stress to the customers on part of the bank is completely unacceptable.
Being the CEO of ANZ since 2016, he has made himself accountable for any misconduct to the
customers. Mr. Elliott announced that there are around 200 staffs of ANZ who had been

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dismissed due to the misconduct causing sufferings to the people in Australia. In the past year,
ANZ did not give sufficient attention to the misconducts and failure of bank executives harming
customers.
The past mistakes not only harmed consumers but are also responsible for down grade in
bank’s profit. Complaints regarding financial services has accounted more than fifty percent
decline in profit. Most of these complaints are related to product reviews, inappropriate advices
and non-offerings of promised services (Logan 2018). The present CEO of the bank not only
apologised the customers but also invited bank’s customers to mail him directly regarding any
complaints to the given mail address. This is expected to resolve complains of customers at a fast
pact benefitting both the bank and the customers.
Summary 4
Article title: “Labor supports fast-tracking tax cuts for small to medium-sized businesses”
Tax rates for small and medium sized enterprises are expected to be reduced at a faster
pace than expected following announcement of labour about backing the Coalition plan for tax
relief on a fast track. The Federal government recently announced an acceleration in tax rate
reduction for business enjoying turnover to the upper limit of $50 million. After a reduction in
the said tax rate from 30 percent to 27.5 percent, government has announced a further reduction
in the tax rate to 25 percent by 2026 (abc.net.au 2018). The Coalition however has attempted to
make the downward revision in the tax rate earlier.
The opposition leader has not completely redundant the proposal and considered whether
to ruling in or ruling out. Treasurer and opposition leaders are thinking of supporting the
proposal. The opposition leader, Mr. Shorten said that they are ready to compromise national

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interest rate. They are agreed to incorporate the decision in the bottom line of the budget with
one-year delay in introduction of ‘Australian Investment Guarantee’ (abc.net.au 2018). Coalition
however has given warning to small business despite agreeing on fast track tax relief. In this
regard, the opposition cannot be trusted as the opposition leader disagreed tax concession for
small business.
Summary 5
Article title: “Westpac considered passing bank levy onto customers and staff”
Brian Hartzer, the boss of Westpac has agreed that the bank earlier was an unnamed
financial institution that was singled out by regulators of competition in the past. The bank has
announced to pass on the full cost burden of bank levy to the customer rather than its
shareholders. Westpac also considered passing on million-dollar cost burden to staffs of the
bank. In the report of Australian competition and consumer act Westpac was pointed an
unnamed financial institution among the four bug banks for making shareholders to pay the cost
of levy and later shifting the cost burden to the suppliers and customers. Some banks also pass
the cost to their staffs.
ACCS carried out an inquiry on the four major banks including Westpac regarding the
mortgage pricing in 2017. Over the next four years, the government expects bank levy to
increase to $6.2 billion. As against this, Westpac estimated an increase of $370 in the bank levy.
It was the first baking institution that took the decision of raising mortgage rate without RBA’s
concern (Danckert 2018). Westpac also passed the levy to its staffs. Mr. Hartzer has waned
policymaker to remain careful before taking any steps following the recommendation of royal
commission.

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References
ABC News. 2018. ANZ sacked 200 staff over banking misconduct. [online] Available at:
http://www.abc.net.au/news/2018-10-12/anz-boss-shayne-elliott-fronts-parliament/10368460
[Accessed 14 Oct. 2018].
ABC News. 2018. House price falls to continue as new loans dry up. [online] Available at:
http://www.abc.net.au/news/2018-10-12/home-lending-weakness-points-to-house-prices-falling-
more/10370044 [Accessed 14 Oct. 2018].
ABC News. 2018. Labor supports fast-tracking tax cuts for small to medium-sized businesses.
[online] Available at: http://www.abc.net.au/news/2018-10-12/labor-supports-fast-tracking-the-
tax-cuts/10369226 [Accessed 14 Oct. 2018].
Danckert, S. 2018. Westpac considered passing bank levy onto customers and staff. [online] The
Sydney Morning Herald. Available at:
https://www.smh.com.au/business/banking-and-finance/westpac-considered-passing-bank-levy-
onto-customers-and-staff-20181011-p5094q.html [Accessed 14 Oct. 2018].
Logan, T. 2018. Avocado prices set to fall as supply smashes demand. [online] ABC Rural.
Available at: http://www.abc.net.au/news/rural/2018-10-11/avocado-prices-hit-their-peak/
10360012 [Accessed 14 Oct. 2018].

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