AUSTRALIA – POLITICS AND GOVERNMENT

Big tech warns news tax a global precedent

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 3 : 3-Jun-26

Two US lobby groups have criticised the proposed News Bargaining Incentive in submissions to the federal government. The Software & Information Industry Association and the National Foreign Trade Council both represent technology giants such as Meta and Google, while the latter’s members also include Amazon, Coca-Cola and Shell. The NFTC contends in its submission that the NBI is a "discriminatory" digital services tax that primarily targets US companies. The NBI would impose an additional tax of 2.25 per cent on the Australian revenue of Meta, Google and TikTok if they fail to secure commercial deals with local news publishers for using their content.

CORPORATES
SOFTWARE AND INFORMATION INDUSTRY ASSOCIATION, UNITED STATES. NATIONAL FOREIGN TRADE COUNCIL, META PLATFORMS INCORPORATED, GOOGLE INCORPORATED, AMAZON.COM INCORPORATED, THE COCA-COLA COMPANY, SHELL PLC, TIKTOK

Internal torpedo alert: PM faces AUKUS strife

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Original article by Greg Brown, Ben Packham
The Australian – Page: 1 & 4 : 3-Jun-26

Deputy Prime Minister Richard Marles has responded to a growing push to reconsider the AUKUS alliance by emphasising that the federal government fully supports the defence pact. The United Workers Union’s national secretary Tim Kennedy is amongst those who have called for AUKUS to be reassessed, as have some Labor MPs and teal independents. Former industry minister Ed Husic used Labor’s caucus meeting yesterday to urge a new vote on the alliance, contending that the terms of the deal have changed following the revelation that Australia will now acquire three used Virginia-class nuclear-powered submarines; the original deal had included one brand-new vessel.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, UNITED WORKERS UNION

Workers pay as income taxes hit a 30-year high

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Original article by Michael Read
The Australian Financial Review – Page: B5 : 13-May-26

The federal government’s budget includes a new and permanent income tax break for wage and salary earners. The Working Australians Tax Offset will be worth up to $250 per annum and is slated to cost about $3bn in its first full year of operation; an estimated 13.3 million workers will be entitled to the tax offset, although it will not be available until they submit tax returns for the 2027-28 financial year. Meanwhile, the budget papers show that government revenue from individuals’ income tax is forecast to exceed $382bn in 2027-28; this equates to 52 per cent of the total tax take, and it is expected to rise to 54.5 per cent by 2029-30.

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$77bn tax grab

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Original article by Greg Brown
The Australian – Page: 1 & 11 : 13-May-26

The federal government’s budget papers show that the nation’s gross debt is set to exceed $1 trillion in 2026-27, while it is forecast to peak at 35.8 per cent of GDP in 2028-29. Net debt is in turn forecast to top $616bn by mid-2027, while the budget includes net tax increases totalling $77bn. Meanwhile, the government is set to post deficits for the next decade and will not deliver a balanced budget until 2034-35, although the latter is based on expectations of higher tax revenue and projected savings from NDIS reforms. The budget also includes a productivity package for the business sector; amongst other things, the instant asset write-off will become a permanent feature of the tax system, while the loss carry back tax offset will be reinstated; however, the government now expects its productivity growth target of 1.2 per cent to be achieved three years later than expected.

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Our tolerant country is no more

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Original article by James Dowling
The Australian – Page: 6 : 6-May-26

The Royal Commission on Anti-Semitism and Social Cohesion has heard further evidence from Jewish Australians who have been targeted due to their religion. The second day of public hearings was told that Jewish Australians have had to endure verbal abuse and death threats in public places; in one instance a victim of anti-Semitism was told by NSW police that his complaint would not be investigated because it would be a "wasted effort". The Executive Council of Australian Jewry’s co-CEO Peter Wertheim said the far right had been largely responsible for anti-Semitism in past years; however, he noted that the far left and Islamist groups have become drivers of anti-Semitism since the anti-Israel movement started to gather pace in Australia.

CORPORATES
AUSTRALIA. ROYAL COMMISSION ON ANTISEMITISM AND SOCIAL COHESION, EXECUTIVE COUNCIL OF AUSTRALIAN JEWRY

Handouts row: Take a hike, says Reserve

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Original article by Matthew Cranston, Thomas Henry
The Australian – Page: 1 & 5 : 6-May-26

Treasurer Jim Chalmers says the Reserve Bank of Australia’s decision to increase the cash rate to 4.35 per cent yesterday will add to the pressure that families and businesses are already facing. He adds that the federal governments intends to play a helpful rather than harmful role in the fight against inflation. However, RBA governor Michele Bullock has cautioned against giving households more money in next week’s budget, arguing that this would make it harder for the central bank to bring inflation under control. AMP’s chief economist Shane Oliver says the government should reduce public spending in the budget to help alleviate underlying inflation pressures, while also introducing reforms aimed at boosting productivity and capacity in the economy.

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AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AMP LIMITED – ASX AMP

Plea for certainty on fuel excise as tourism braces for school holiday hit

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Original article by Sarah Ison
The Australian – Page: 4 : 1-May-26

Transport & Tourism Forum CEO Margy Osmond says the federal government must soon decide whether to extend the temporary fuel excise tax reduction beyond 30 June. Osmond says the tourism industry needs more certainty regarding the excise tax relief ahead of the mid-year school holidays. The TTF has also joined forces with Accommodation Australia and the Caravan Industry Association of Australia to urge the government to develop a ­national fuel dashboard, which would allow motorists to track fuel prices and shortages across state borders.

CORPORATES
TOURISM AND TRANSPORT FORUM, ACCOMMODATION AUSTRALIA, CARAVAN INDUSTRY ASSOCIATION OF AUSTRALIA LIMITED

Super funds set to avoid CGT change

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Original article by John Kehoe, Lucas Baird
The Australian Financial Review – Page: 1 & 6 : 1-May-26

The federal government’s widely-tipped changes to the 50 per cent capital gains tax discount are likely to affect personal investors who have held assets such as property and shares for more than one year. However, sources claim that the government has told superannuation funds that the budget on 12 May will not include any major changes that will affect them. This suggests that super funds’ current CGT discount on their earnings will be retained. Meanwhile, Treasurer Jim Chalmers has not explicitly ruled out exempting any existing assets from potential changes to the CGT discount, although he has indicated that any impact on such assets would be minimal.

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AUSTRALIA. DEPT OF THE TREASURY

Budget leak: Chalmers’ productivity centrepiece

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Original article by Matthew Cranston, Greg Brown
The Australian – Page: 1 & 4 : 1-May-26

Treasurer Jim Chalmers has indicated that the federal govenment’s budget on 12 May will include a "productivity package". There is growing expectation within the business community that the focus of this package will be reducing red tape, rather than major new company tax incentives. However, Chalmers is believed to favour making the asset write-off for businesses with annual turnover of less than $10m a permanent feature of the tax system; the instant asset write-off of up to $20,000 a year was extended for 12 months in 2025. Tax & Transfer Policy Institute director Bob Breunig contends that broader tax reform than simply extending the asset write-off is needed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF PUBLIC POLICY. TAX AND TRANSFER POLICY INSTITUTE

Chinese spy fears tossed in the boot: more EV choices for MPs

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Original article by Ben Packham, Elizabeth Pike
The Australian – Page: 1 & 4 : 29-Apr-26

Special Minister of State Don Farrell has added Chinese-made electric vehicles to the list of taxpayer-funded cars that are available to federal MPs and senators for their private use. The revised list includes six vehicles made by BYD and one made by MG; the Toyota Prado and four utes are the only internal conbusion engine cars among the 22 on the list of approved vehicles. ASIO director-general Mike Burgess has previously raised concerns about the potential security concerns associated with Chinese-made vehicles, warning that conversations of a classified nature should not be held in them due to the potential for eavesdropping. The US is set to to ban the installation of Chinese software in electric vehicles.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION