BUSINESS AND POLITICS – AUSTRALIA

NAB’s Henry calls for action on forgotten tax system review

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Original article by James Eyers, James Thomson
The Australian Financial Review – Page: 9 : 18-Dec-17

Ken Henry prepared a major report into Australia’s tax system in 2010, when he was secretary of the Treasury under former prime minister Kevin Rudd. Henry is currently chairman of National Australia Bank. When asked by a shareholder at its AGM on 15 December whether he favoured tax reform, he said that there were lots of proposals in his 2010 report that he would like to see adopted, including a reduction in the company tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BUSINESS COUNCIL OF AUSTRALIA

Gas price plunge after exporters toe PM’s line

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Original article by Matt Chambers
The Australian – Page: 1 & 2 : 13-Dec-17

A new report shows that wholesale gas prices on the east coast have fallen by up to 50 per cent since the Federal Government flagged plans to impose LNG export controls in order to boost domestic gas supplies. The Australian Competition & Consumer Commission will release the second report on its investigation into the east coast gas market on 13 December. The report notes that rather than a forecast gas shortage of up to 107 petajoules in 2018, there is the potential for a surplus of around 20 petajoules as LNG producers redirect export volumes to the domestic market.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ROYAL DUTCH SHELL PLC, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, INCITEC PIVOT LIMITED – ASX IPL, AGL ENERGY LIMITED – ASX AGL

IPA advocates income tax power be given to states

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Original article by Brad Thompson
The Australian Financial Review – Page: 12 : 12-Dec-17

The distribution of goods and services tax revenue between the states and territories continues to attract scrutiny. The Institute of Public Affairs has proposed the adoption of a system of "competitive federalism", whereby the states would be responsible for setting their own GST rate and retaining the revenue. IPA executive director John Roskam suggests that the states and territories could also be allowed to impose their own income taxes, but notes that they baulked at this when the idea was put forward by Prime Minister Malcolm Turnbull in 2016.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION

Top CEOs admit public trust deficit

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Original article by James Thomson, Michael Smith, Tony Boyd
The Australian Financial Review – Page: 1 & 9 : 8-Dec-17

CEOs such as Coca Amatil CEO Alison Watkins say big business needs to do a better job of explaining its contribution to the economy to the general public. Origin Energy CEO Frank Calabria contends that the average Australian has tuned out to both government and big business, while departing Commonwealth Bank CEO Ian Narev says it is important that big business is willing to acknowledge its mistakes. APA Group CEO Michael Cormack says the federal government should stop using big business as a scapegoat for its own mistakes.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, ORIGIN ENERGY LIMITED – ASX ORG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, APA GROUP – ASX APA, QANTAS AIRWAYS LIMITED – ASX QAN, WESTPAC BANKING CORPORATION – ASX WBC, RIO TINTO LIMITED – ASX RIO, ENERGYAUSTRALIA PTY LTD, SANTOS LIMITED – ASX STO

Banks inquiry top concern of US investors

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Original article by Michael Roddan
The Australian – Page: 21 : 5-Dec-17

Shares in Australia’s major banks have fallen in the wake of the Federal Government’s decision to hold a royal commission into the sector. Westpac CEO Brian Hartzer says the issue of a royal commission has been a key concern for US investors in recent weeks. Meanwhile, the Opposition and the Australian Greens have urged the Government to broaden the inquiry’s terms of reference.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE TREASURY

Trump’s tax cut puts heat on Labor

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Original article by Andrew White, Cameron Stewart
The Australian – Page: 1 & 4 : 4-Dec-17

Australian business leaders have warned that jobs and investment will be at risk unless proposed changes to the corporate tax regime are implemented. Business Council of Australia CEO Jennifer Westacott says the US will attract more capital at the expense of Australia after the US Senate passed the tax package of President Donald Trump. The US corporate tax rate will be slashed from 35 per cent to around 20 per cent, prompting business groups to urge the Australian Labor Party and crossbenchers to support the proposal for an across-the-board reduction in Australia’s company tax rate to 25 per cent.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, PRICEWATERHOUSECOOPERS, UNIVERSITY OF SYDNEY. UNITED STATES STUDIES CENTRE, AUSTRALIA. DEPT OF THE TREASURY, REPUBLICAN PARTY (UNITED STATES)

Developers told GST changes out of left field despite talks

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Original article by Duncan Hughes
The Australian Financial Review – Page: 10 : 4-Dec-17

Changes to the goods and services tax treatment of property transactions are due to take effect on 1 July 2018, although they must first be passed by parliament. They are aimed at preventing a practice known as "phoenixing", whereby developers close their business before they have settled their GST obligations, and start up another entity under a different name. The changes are tipped to boost GST collection by $A660 million over four years, but developers are concerned that they will face more red tape and greater compliance costs.

CORPORATES
AUSTRALIAN TAXATION OFFICE, FEHILY ADVISORY

Tax cuts will unleash investment

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Original article by Andrew Tillett
The Australian Financial Review – Page: 1 & 7 : 20-Nov-17

Just over 80 per cent of companies taking part in a Business Council of Australia survey say they would increase investment if the corporate tax rate was cut to 25 per cent. Just under 75 per cent stated they felt a reduction in the tax rate would make them more competitive globally, while 70 per cent stated they would hire more staff. Prime Minister Malcolm Turnbull says the results of the survey shows the federal government’s plan to cut company tax is the correct one.

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

Westpac CEO says political consensus needed to lift business confidence

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Original article by James Eyers,James Frost
The Australian Financial Review – Page: Online : 7-Nov-17

Westpac CEO Brian Hartzer has urged Australia’s politicians to find common ground on issues such as energy policy and infrastructure spending, so as to encourage business confidence. He made his remarks while announcing on 6 November that Westpac had recorded an annual profit of $A8.1 billion. Westpac predicts that Australian gross domestic product will grow by just 2.5 per cent in 2018, compared with forecast global growth of 3.5 per cent. Hartzer does not expect any change in interest rates for some time to come.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC,AUSTRALIA. DEPT OF THE TREASURY,RESERVE BANK OF AUSTRALIA,AUSTRALIAN LABOR PARTY,AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Citizenship debacle a trust breaker: Goyder

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 3-Nov-17

Wesfarmers CEO Richard Goyder says political uncertainty is weighing on consumer confidence and retail sales. He used a National Press Club speech on 2 November to criticise former Senate president Stephen Parry over a long delay in disclosing concerns that he may have British citizenship by descent. Goyder added that Parry’s inaction has contributed to the general public’s lack of trust in politicians and heightened the perception that they are not addressing the needs of electors.

CORPORATES
WESFARMERS LIMITED – ASX WES, NATIONAL PRESS CLUB (AUSTRALIA), HIGH COURT OF AUSTRALIA, AMAZON.COM INCORPORATED