Business cashflow assistance tops $6bn

Original article by Geoff Chambers, Patrick Commins
The Australian – Page: 4 : 1-May-20

Prime Minister Scott Morrison says the federal government’s tax-free cashflow payments have assisted employers to remain in business during the coronavirus pandemic. New figures show that some 343,211 small businesses and non-profit organisations had collectively received $6.09bn worth of cashflow payments by 28 April. Eligible businesses are entitled to receive payments of between $20,000 and $100,000; the average amount received to date is $17,700 per business. The government estimates that about 720,000 businesses will be eligible for the payments.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

What’s our strategy for slump in wake of virus?

Original article by Robert Gottliebsen
The Australian – Page: 25 : 26-Feb-20

Research by Roy Morgan shows that one-in-six Australian businesses have already been impacted by the coronavirus outbreak. This includes sectors of the economy that are among the biggest employers, such as manufacturing and education. However, small and medium enterprises are likely to be hardest hit by the economic fallout from the virus. The federal government is therefore to be commended for proposing to require large companies to pay suppliers more promptly. At present, the proposed legislation only applies to businesses with turnover of up to $10m, but it should be expanded to include medium-sized businesses.

CORPORATES
ROY MORGAN LIMITED

Business cash flow tax would lift investment

Original article by John Kehoe
The Australian Financial Review – Page: 9 : 3-Sep-19

Economist Ross Garnaut has called on the federal government to adopt a business cash flow tax that would incorporate a full deduction for corporate expenditure. He says a full tax write-off for business expenditure provides a significant incentive for investment, and is in line with Treasurer Josh Frydenberg’s recent call for companies to boost productivity by increasing capital investment in preference to share buybacks and special dividends. Garnaut and former federal Labor minister Craig Emerson have undertaken economic modelling on a possible switch from the traditional profit-based company tax to a tax based on cash flow.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, BHP GROUP LIMITED – ASX BHP

Tax cash flow instead of profit, say economists

Original article by Ben Potter
The Australian Financial Review – Page: 8 : 10-Dec-18

Leading economists Ross Garnaut and Craig Emerson have proposed a major overhaul of the corporate tax system. They have proposed taxing a company’s cash flow rather than its profits, arguing amongst other things that this would result in increased tax revenue at a lower rate and result in a more level playing field between small companies and multinationals. They add that it would also result in increased investment and reduce the incidence of tax avoidance via profit-shifting.

CORPORATES
APPLE INCORPORATED, CHEVRON CORPORATION, BHP GROUP LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF MELBOURNE, VICTORIA UNIVERSITY, LONDON SCHOOL OF ECONOMICS, INDUSTRY SUPER AUSTRALIA PTY LTD

Rio unveils a higher vision after scandals

Original article by Matt Chambers
The Australian – Page: 19 & 30 : 25-Nov-16

CEO Jean-Sebastien Jacques used Rio Tinto’s investor presentation on 24 November 2016 to reveal that the resources giant will launch a revised mission statement in January 2017. He said the "vision and values" statement will reflect the miner’s "higher purpose" rather than focusing on shareholder value. Jacques also stressed the importance of Rio Tinto’s code of conduct, particularly in the wake of the payments scandal concerning the Simandou iron ore project. Jacques also aims to lift annual cash flow by at least $US5bn over the next five years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD