BUSINESS AND POLITICS – AUSTRALIA

Imputation query as company tax cut gives biggest bang

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 10-Feb-16

Prime Minister Malcolm Turnbull has ruled out increasing the GST to finance income tax cuts, after telling Coalition MPs that economic modelling has shown that it would not be economic feasible. The modelling showed that using a higher GST to finance company tax cuts would achieve the greatest economic benefit. Meanwhile, Australian Industry Group CEO officer Innes Willox has proposed reducing the company tax rate from 30 per cent to 20 per cent by scrapping the dividend imputation system.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, MACQUARIE UNIVERSITY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER, COUNCIL FOR THE AUSTRALIAN FEDERATION

Tax options shrink after GST retreat

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 4 : 8-Feb-16

The Australian Government may be reconsidering its plans to increase the GST, after Prime Minister Malcolm Turnbull suggested that there may be no net benefit from increasing the tax and cutting personal income tax rates. The Government is expected to look at alternatives such as changes to the negative gearing regime for property investors. However, Business Council of Australia CEO Jennifer Westacott says her organisation’s modelling shows that a GST increase that is offset by income tax cuts would be the best to boost the economy.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIA INSTITUTE LIMITED, UNIVERSITY OF CANBERRA. NATIONAL CENTRE FOR SOCIAL AND ECONOMIC MODELLING, AUSTRALIA. DEPT OF THE TREASURY

Don’t touch negative gearing, MPs warned

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Feb-16

The Property Council of Australia stresses the importance of negative gearing for housing. It will argue in a submission to the joint standing committee on economics’ inquiry into tax deductibility that negative gearing should be retained in its current form. The Property Council has warned that it could mobilise negatively geared voters in marginal seats to persuade politicians to leave negative gearing unchanged.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY

Palmer tops list of political generosity

roymorgansocial Leave a comment

Original article by Primrose Riordan, Edmund Tadros, Ewin Hannan
The Australian Financial Review – Page: 7 : 2-Feb-16

Mining magnate Clive Palmer donated almost $A10 million to his own Palmer United Party in 2014-15. Annual disclosure returns, released by the Australian Electoral Commission, show that Palmer was the largest political donor in 2015. The total amount of political donations fell significantly, with the Liberal Party of Australia recording a 40 per cent decline in receipts.

CORPORATES
MINERALOGY PTY LTD, PALMER UNITED PARTY, QUEENSLAND NICKEL PTY LTD, COOLUM RESORT PTY LTD, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, BRUNSWICK PROPERTY VENTURE PTY LTD, EVER BRIGHT GROUP PTY LTD, CORMACK FOUNDATION PTY LTD, PHILIP MORRIS (AUSTRALIA) LIMITED, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA, AUSTRALIAN GREENS, VISY INDUSTRIES AUSTRALIA PTY LTD, PRATT HOLDINGS, AUSTRALIAN ELECTORAL COMMISSION

Treasury against debt tax trade-off

roymorgansocial Leave a comment

Original article by Joanna Mather, Primrose Riordan
The Australian Financial Review – Page: 1 & 4 : 25-Jan-16

Federal Treasurer Scott Morrison says that reducing tax deductions will not generate sufficient revenue to fund tax reforms. However, the Treasury’s submission to parliament’s economics committee has argued against financing a corporate tax cut via the abolition of tax deductions for corporate debt. This view is shared by the Business Council of Australia and companies such as CSL and Inpex, which have also made submissions to the inquiry.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, CSL LIMITED – ASX CSL, INPEX CORPORATION, KPMG AUSTRALIA PTY LTD, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, LIBERAL PARTY OF AUSTRALIA

Hipsters, Byron surfers boost Coopers in NSW

roymorgansocial Leave a comment

Original article by Simon Evans
The Australian Financial Review – Page: 3 : 22-Jan-16

Data from the Australian Bureau of Statistics shows that beer consumption has fallen to its lowest level in more than six decades. Coopers Brewery MD Tim Cooper believes that beer sales will not rebound unless the Federal Government scraps the wine equalisation tax rebate. New South Wales accounted for 24.5 per cent of Coopers’ sales in 2015, while the brewer’s home state of South Australia accounted for 24.3 per cent of sales.

CORPORATES
COOPERS BREWERY LIMITED, AUSTRALIAN BUREAU OF STATISTICS

Media rules bickering a distraction: Worner

roymorgansocial Leave a comment

Original article by Jake Mitchell
The Australian – Page: 19 : 20-Jan-16

The "reach rule" and the "two-out-of-three rule" have been the focus of the Australian Government’s proposed changes to cross-media ownership laws. However, Seven West Media CEO Tim Worner believes that the issue of TV licence fees – which are the world’s highest – should be the highest priority in any reform agenda. He argues that this will encourage TV networks to invest in the industry and local content.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WIN CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NATIONAL PARTY OF AUSTRALIA

Tax home sales over $2m call

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 11-Jan-16

The Australia Institute has urged a review of the capital gains tax exemption on family homes, which is expected to cost $A189bn by 2020. This compares with $A46bn in 2015-16. The Australia Institute advocates scrapping the CGT exemption for homes valued at more than $A2m, and modelling suggests that this move could add around $A12bn to the Federal Government’s Budget bottom line over four years. AMP chairman Simon McKeon supports the Australia Institute’s proposal.

CORPORATES
THE AUSTRALIA INSTITUTE LIMITED, AMP LIMITED – ASX AMP, UNIVERSITY OF CANBERRA. NATIONAL CENTRE FOR SOCIAL AND ECONOMIC MODELLING, BUSINESS COUNCIL OF AUSTRALIA

Bosses want ban on union tactic

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 11-Jan-16

The final report of the Royal Commission into Trade Union Governance and Corruption noted that pattern bargaining is a major issue in the construction industry. However, it not recommend a total ban on the practice as it does not seem to be widespread in other industries. Master Builders Australia CEO Wilhelm Harnisch has urged the Federal Government to introduce laws to prohibit pattern bargaining in the building industry, arguing that it increases construction costs and undermines productivity.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, MASTER BUILDERS AUSTRALIA INCORPORATED, THE AUSTRALIAN INDUSTRY GROUP, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO THE BUILDING AND CONSTRUCTION INDUSTRY

Surcharge may have to rise for high earners

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 6-Jan-16

Private Healthcare Australia notes that the cost of private health insurance is now rising faster than growth in wages. This has resulted in many people being financially better off by paying the Medicare levy rather than taking out health insurance. Private Healthcare Australia has suggested that increasing the Medicare levy may be necessary to provide an incentive for people on high incomes to join a health insurance fund.

CORPORATES
PRIVATE HEALTHCARE AUSTRALIA LIMITED, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN MEDICAL ASSOCIATION LIMITED, AUSTRALIA. DEPT OF HEALTH