BUSINESS AND POLITICS – AUSTRALIA

BP joins calls to raise GST in line with OECD

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 17-Jun-15

BP Australia COO Andy Holmes notes that the average GST rate among OECD countries is 18 per cent. He argues that Australia should lift its GST rate from 10 per cent to 15 per cent, and broaden the scope of the consumption tax. BP’s submission on the Federal Government’s tax white paper also calls for changes to the stamp duty regime and the petroleum resource rent tax. Rio Tinto also favours stamp duty reform, arguing that it deters investment in Australia.

CORPORATES
BP AUSTRALIA LIMITED, BP PLC, RIO TINTO LIMITED – ASX RIO, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, PROPERTY COUNCIL OF AUSTRALIA LIMITED

Slash company tax rate, CSL urges

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 16-Jun-15

CSL’s CFO Gordon Naylor says the blood products group does not intend to reduce its manufacturing presence in Australia. However, he has conceded that CSL would have seriously considered building a $A500m plant in Australia if the nation’s 30 per cent corporate tax rate had been more competitive. CSL opted to build the facility in Switzerland, which has a company tax rate of 18 per cent. CSL has suggested that Australia adopt a tax rate of 10 per cent for advanced manufacturers.

CORPORATES
CSL LIMITED – ASX CSL, CORPORATE TAX ASSOCIATION, MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Equities titans say ‘leave dividend imputation alone’

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Original article by Vesna Poljak
The Australian Financial Review – Page: 13 & 20 : 3-Jun-15

Balanced Equity Management fund manager Andrew Sisson has urged the Australian Government to retain dividend imputation. He warning that scrapping the regime will result in lower dividend payouts and prompt more companies to shift their tax liabilities offshore. Veteran fund manager Peter Morgan also favours retaining the current system, as do Djerriwarrh Investments and Westpac. Perpetual did not make a submission on the Government’s tax white paper.

CORPORATES
BALANCED EQUITY MANAGEMENT PTY LTD, DJERRIWARRH INVESTMENTS LIMITED – ASX DJW, WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, PERPETUAL LIMITED – ASX PPT, 452 CAPITAL PTY LTD, AMP LIMITED – ASX AMP, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, QBE INSURANCE GROUP LIMITED – ASX QBE, BOND CORPORATION HOLDINGS LIMITED

Mining royalties queried

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-May-15

Senate economics committee chairman Sam Dastyari has questioned whether the BHP Billiton and Rio Tinto offshore marketing hubs are affecting the Western Australian Government’s revenue from iron ore royalties. He says Premier Colin Barnett should look into the issue, especially given that the Australian Taxation Office is also undertaking an investigation into the practice of using trading hubs in Singapore.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN TAXATION OFFICE, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE

Reach rule ‘putting local news at risk’

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 25-May-15

Prime Media Group CEO Ian Audsley expects WIN Corporation to scrap more of its regional news bulletins following the closure of its newsrooms in Mackay and Mildura. WIN has attributed the move to factors such as the regulatory regime and the economic viability of local newsrooms. Audsley says the Australian Government’s lack of action on abolishing the so-called "reach rule" is contributing to the demise of regional broadcasters’ news services.

CORPORATES
WIN CORPORATION PTY LTD, PRIME MEDIA GROUP LIMITED – ASX PRT, AUSTRALIA. DEPT OF COMMUNICATIONS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Directors blast Coalition over tax

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Original article by Agnes King
The Australian Financial Review – Page: 5 : 21-May-15

Corporate directors have criticised the Australian Government for failing to include GST and superannuation in its tax reform agenda. Perpetual director Sylvia Falzon says tax reform is "pointless" if these issues are not part of the debate, while Wesfarmers director Jennifer Westacott argues that tax reform will encourage greater investment and workforce participation.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WESFARMERS LIMITED – ASX WES, BUSINESS COUNCIL OF AUSTRALIA, SAI GLOBAL LIMITED – ASX SAI, REGIS HEALTHCARE LIMITED – ASX REG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BRAMBLES LIMITED – ASX BXB, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, STOCKLAND – ASX SGP, BUSINESS COALITION FOR TAX REFORM

Big miners spook Abbott

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Original article by Phillip Coorey, Julie-anne Sprague, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 20-May-15

Fortescue Metals Group chairman Andrew Forrest says the Australian Government should proceed with a parliamentary inquiry into the iron ore industry. He notes that lower prices for the steel input affects government revenue, and he says the Government should not yield to pressure from BHP Billiton and Rio Tinto. The two big miners have criticised proposals for a federal inquiry, while Prime Minister Tony Abbott has moderated his position on the issue, after previously supporting such an inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Hockey in iron ore inquiry talks

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Original article by John Kerin, Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 15-May-15

Independent Senator Nick Xenophon wants a bipartisan parliamentary committee to hold an inquiry into iron ore pricing. There is speculation that any such inquiry could be chaired by Liberal MP Angus Taylor, who has worked as a consultant in the sector. Minerals Council of Australia CEO Brendan Pearson rejects claims by Andrew Forrest that BHP Billiton and Rio Tinto are ramping up production with a view to forcing smaller producers out of the iron ore market, and says there is no need for an inquiry.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY

Chaney tells Senate to OK budget

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Original article by Sue Mitchell, Tim Binsted
The Australian Financial Review – Page: 1 & 6 : 12-May-15

Incoming Wesfarmers chairman Michael Chaney says the Australian Government needs to be more proactive in informing the public about the need to reduce spending in the May 2015 Budget. He has also stressed the need for bipartisan support for Budget measures in the Senate, and says consumer confidence, employment and the economy will be negatively affected if the Budget is rejected by the upper house. Chaney will succeed Bob Every as Wesfarmers chairman in November.

CORPORATES
WESFARMERS LIMITED – ASX WES, AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, INCITEC PIVOT LIMITED – ASX IPL

Wesfarmers criticises ‘effects test’

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Original article by Julie-Anne Sprague
The Australian Financial Review – Page: 10 : 2-Apr-15

The final report of the Harper review of competition law has recommended strengthening existing laws on the misuse of market power. However, retail giants Woolworths and Wesfarmers do not support the introduction of a so-called "effects test", and Wesfarmers CEO Richard Goyder believes that it may in fact adversely affect consumers. An effects test has the support of National Farmers’ Federation CEO Simon Talbot

CORPORATES
WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, NATIONAL FARMERS’ FEDERATION LIMITED, AUSTRALIAN LABOR PARTY, COLES GROUP LIMITED