AUSTRALIA – POLITICS AND GOVERNMENT

$1bn increase in company tax take boosts the case for reform

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Original article by Adam Creighton
The Australian – Page: 6 : 28-Jun-18

The Federal Government has released data showing that company tax revenue for 2017-18 will be $A1.1bn higher than had been forecast in its May 2018 Budget. Finance Minister Mathias Cormann has also advised that company tax revenue for 2017-18 is expected to be $A9.2bn higher than the $A78.6bn that the government had forecast in its Budget update in late 2016. Cormann also revealed that a crackdown on tax avoidance has resulted in the recovery of $A2.7bn in unpaid taxes from multinationals.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN LABOR PARTY

Pressure on Shorten to fix tax split

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Original article by Simon Benson, Ben Packham
The Australian – Page: 1 & 6 : 28-Jun-18

Dissent within Labor is continuing over plans to reverse tax cuts for companies with annual turnover of between $A10m and $A50m if Labor wins the next election. Labor’s leadership group is expected to endorse the policy at a meeting on 28 June, despite some Labor MPs expressing concern that Opposition Leader Bill Shorten announced the policy without consulting the shadow cabinet or caucus. The Federal Government remains hopeful of gaining the support of Senate crossbenchers for its full company tax cuts package.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, REACHTEL PTY LTD

Shorten’s $20bn tax clawback

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Original article by Simon Benson, Ben Packham
The Australian – Page: 1 & 6 : 27-Jun-18

Opposition Leader Bill Shorten has confirmed that Labor will reverse tax cuts for businesses with turnover of $A10m to $A50m if it wins the next federal election. A cut tax for firms with turnover of $A25m to $A50m is scheduled to take effect on 1 July. Shorten has indicated that Labor could also repeal previously legislated tax cuts for businesses with turnover of $A2m to $A10m. Employers’ groups have warned that Labor’s stance will create uncertainty for businesses, while some Labor MPs say Shorten did not consult shadow cabinet or caucus before announcing the policy.

CORPORATES
AUSTRALIAN LABOR PARTY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Nationals to demand changes to NEG

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Original article by Phillip Coorey
The Australian Financial Review – Page: 9 : 26-Jun-18

The federal government’s proposed National Energy Guarantee aims to commit power retailers to a secure electricity supply that will meet carbon emissions reduction and reliability targets. National Party MPs met to discuss the NEG on 25 June, and are understood to want its proposed mechanism to be altered so as to favour suppliers of baseload power. Some members of both the Nationals and the Liberal Party are of the view that the NEG should not have an emissions reduction component.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, BUSINESS COUNCIL OF AUSTRALIA, NATIONAL FARMERS’ FEDERATION LIMITED, THE AUSTRALIAN INDUSTRY GROUP, MINERAL COUNCIL OF AUSTRALIA, BLUESCOPE STEEL LIMITED – ASX BSL, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Class warfare digs won’t work: Coalition

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Original article by Tom McIlroy
The Australian Financial Review – Page: 6 : 26-Jun-18

Prime Minister Malcolm Turnbull claims that Labor is attacking him because he is wealthy and successful. Labor will run commercials which contend that Turnbull will benefit from the federal government’s plans to reduce the company tax rate because of the large number of companies in which he has investments. Deputy Prime Minister Michael McCormack has accused Labor of engaging in class warfare, while Labor’ finance spokesman Jim Chalmers has accused Turnbull of siding with millionaires.

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

Shorten’s team rich in assets

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Original article by Ben Packham, Joe Kelly
The Australian – Page: 1 & 6 : 26-Jun-18

Analysis of federal parliament’s register of pecuniary interests shows that many Labor MPs own at least one investment property. Tanya Plibersek, Anthony Albanese and Mark Dreyfus are among the Labor frontbenchers who will benefit from the party’s proposal to "grandfather" its changes to the negative gearing regime. Labor intends to abolish negative gearing for people entering the property market, although people who invest in new housing stock will be exempt from the change.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

MPs risk jobs with tax block

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Original article by Simon Benson
The Australian – Page: 1 & 7 : 26-Jun-18

BHP Billiton CEO Andrew Mackenzie and Fortescue Metals Group CEO Elizabeth Gaines are among the business leaders who have urged the Senate to pass the Federal Government’s company tax cuts package. Mackenzie says the lack of a globally competitive tax rate could prompt BHP to redirect up to $A32bn worth of investment to other countries. One Nation leader Pauline Hanson in particular has been targeted over her stance on the tax cuts, with beef processor JBL stressing that it employs 6,500 people in her home state of Queensland.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ONE NATION PARTY, JBL, CENTRE ALLIANCE, THOMAS FOODS INTERNATIONAL, AUSTRALIAN LABOR PARTY, UNITED AUSTRALIA PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Hanson in crosshairs on tax cuts

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Original article by Greg Brown, Simon Benson
The Australian – Page: 1 & 4 : 25-Jun-18

One Nation leader Pauline Hanson has advised that she will not support the Federal Government’s company tax cuts package, citing its unwillingness to target multinationals. Hanson’s stance on company tax cuts has been criticised by Australian Conservatives founder Cory Bernardi and the Liberal Democrats’ David Leyonhjelm. The government requires an additional four votes in the upper house to pass its company tax cuts, and Prime Minister Malcolm Turnbull has ruled out excluding banks from the bill in order to gain the support of crossbenchers.

CORPORATES
ONE NATION PARTY, AUSTRALIAN CONSERVATIVES, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, KATTER’S AUSTRALIAN PARTY

PM delivers on historic tax reform

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Original article by Simon Benson
The Australian – Page: 1 & 6 : 22-Jun-18

The first stage of the Federal Government’s personal income tax cuts package will proceed on 1 July after nine Senate crossbenchers voted for the bill, although Opposition Leader Bill Shorten has described the tax cuts as "unfair and unaffordable". Business Council of Australia CEO Jennifer Westacott has welcomed the income tax reform, but stresses the need for a further reduction in the company tax rate. One Nation leader Pauline Hanson has signalled that she may be willing to support the company tax cuts if the government further cracks down on tax avoidance by multinationals.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, ONE NATION PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE

Coalition MPs may cross floor on NEG

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Original article by Joe Kelly
The Australian – Page: 4 : 21-Jun-18

The Coalition remains divided on the issue of the Federal Government’s national energy guarantee, after seven MPs opposed the policy at a joint partyroom meeting on 19 June. Former prime minister Tony Abbott has warned that some Coalition MPs could vote against the policy, and he has expressed concern that senior government ministers seem to be taking the partyroom for granted. Liberal MP Craig Kelly has expressed similar sentiments, and he has not ruled out crossing the floor when parliament votes on the NEG.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS