MoF End of Term Report

Day 3,030, 00:44 • Published in Australia Australia • by Reserve Bank of Australia


G'day punters,

This has been my second term as MoF, and my last for the time being. With a change of conductor comes a change of the primary instrumentalists.

For the most part I've enjoyed the rigorous economic discussion I've had with senators, cabinet members, producers and consumers. It has been informative on many levels and has brought some positive reforms which I hope can be built on. It has also been exhausting and frustrating at times, especially given our unique economic challenges, competing interests from stakeholders, and some rather entrenched views, so I'm very glad to take a rest.



The Bottom Line:

This month the Treasury and RBA combined increased by $30245 and decreased by 47.3 Gold. This is after subtracting Boss Bucks funds which are not yet due for repayment.



Currency Trading:

This term we have been lucky to have J Seemore run currency trading via the RBA. He took $400K from the RBA, divided it amongst five government accounts set aside for the purpose, and turned it into $437,095 giving a return of 9.3%. An great effort which I hope can be repeated or even bested next term.



Boss Bucks:

The first round of the new company loans scheme had 3 applicants, doling out 65 Gold and $20,000 in total. As one loan was negotiated to be interest bearing, it is expected the RBA will be paid back 68.5 Gold and $20,000.
10 Gold has already been paid back ahead of time, meaning the RBA is now owed 58.5 Gold and $20,000. A second round of loans is expected next term. The idea of broadening the scope of the loans has been raised.



Joey Development Scheme:

The JDS had lapsed for a few months, so I brought it under the umbrella of the Department of Finance to ensure continuity. There were no new donors or applicants this month. I am told that there should still be $60K in pledged funds carried over from October, but unfortunately I don't have any names of these pledged donors to pass onto the next MoF.



Taxation:

The average net daily tax for the term was $2801, with a maximum of $4509 and a minimum of $2078. The average is down 1K on last term, partly because last term weapons and food sales were boosted by 2 events, and partly because the drop in the average wage this term led to lower manager work tax revenue.

The rather aptly named TAXSIRA ran a wide ranging discussion paper on tax reform. So far it has produced one change. The Work Tax has been increased from 3% to 4%. This was something I had raised previously in cabinet but was unable to get traction on, so I'm glad a private citizen was able to bring it to the table and have it passed with a clear majority.

Recently, most likely due to increased commune activity, the average wage dropped from $60+ to around $45, which also meant a drop in the Manager Work Tax, Which is set by multiplying the average wage by the work tax rate. This has led to a drop in average daily tax revenue, putting future budget surplus and airstrike potential in jeopardy. The increase to a 4% worker tax puts the manager work tax up to around the $1.80 it was at previously, which should raise daily tax revenue back to consistently $3000 or above. The increased work tax only makes a slight dent in a $70 or $80 wage, and should average wages rise in future, rate could easily be lowered by another senate vote in order to keep the manager work tax constant.

There are still other Taxation issues which deserve a more full discussion and I hope that discussion might continue unbridled. If proposals are well formulated and reforms are long lived then further gains in productivity, revenue, and market confidence should be possible.



The market:

The average wage has been mentioned. There have still been jobs on offer for $70 or above as there were last month with a brief dip to $60 for a few days.

Global weapons prices have generally been higher on the back of last term's damage booster and day 3000 events, meaning that local weapon producers have been able to compete to a degree with overseas prices, although as the month has progressed the gap on Q7 has widened to over 50 cents.

Other commodities have performed reasonable well, although there have been gaps in supply which hopefully loans, the JDS, and other initiatives will help to address more in the future.

We have had occasional 20% bonuses in Weapons thanks to the training war with eSouth Africa.

Late last term I was asked by several citizens to investigate potential bonus region rentals, however due to issues within the Department of Foreign Affairs this term there has been little progress. Hopefully this is something the next administration might work on.



And finally the humdrum stuff:



Reserves:

Reserve Bank of Australia:
240.38 Gold and $334172.83 in RBA main account
4.19 Gold and $437095.15 in RBA Currency trading accounts
Giving a total of 244.57 Gold and $771267.98

Other Government Departmental Accounts:
2.37 Gold and $29404.69

Orgs Rented to non-government organizations and individuals have been secure, with expected fluctuations from currency trading and the opening and closing of accounts. There are still Orgs available for rent at $3500 a month.



Striking a line under the balance sheet,
Gudzwabofer
Outgoing eAustralian MoF.