CORPORATIONS – TAXATION – AUSTRALIA

Turnbull on the verge of tax victory

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Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 6 : 23-Mar-18

One Nation has agreed to back the Federal Government’s company tax cuts package in return for a commitment to a pilot program for taxpayer-subsidised apprenticeships. The Government still requires the support of independent senators Tim Storer and Derryn Hinch, with the latter advising that he will back the tax package provided that it does not apply to the four major banks. Liberal Democrat David Leyonhjelm has vowed to withdraw his support for the tax cuts if the Government agrees to Hinch’s demands. Meanwhile, Labor has signalled that it may seek to reverse any reduction in the tax rate for larger companies if it wins the next election.

CORPORATES
ONE NATION PARTY, LIBERAL DEMOCRATIC PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, NATIONAL PARTY OF AUSTRALIA, ACTU

Tax cut will lift wages: CEOs’ push

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 22-Mar-18

Ten of the nation’s largest companies have committed to increasing their investment in Australia if the Federal Government progressively reduces the corporate tax rate from 30 per cent to 25 per cent. They argue that increased investment will in turn result in the creation of more jobs and ultimately boost wages. Meanwhile, independent senator Steve Martin has agreed to support the Enterprise Tax Plan Bill, although fellow independent Tim Storer has yet to decide his position. The Government requires the support of nine Senate crossbenchers.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, ENERGYAUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORIGIN ENERGY LIMITED – ASX ORG, MYOB GROUP LIMITED – ASX MYO, JBS AUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Hanson ponders tax cuts switch

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Original article by Ben Packham
The Australian – Page: 4 : 21-Mar-18

One Nation leader Pauline Hanson has indicated that she may be open to backing the Federal Government’s company tax cuts package. Hanson notes that many companies in the US are hiring additional staff in the wake of the corporate tax reforms of President Donald Trump. The Nick Xenophon Team, which boasts two senators, opposes the tax cuts, which will require the Government to gain the support of the other nine crossbench senators for its tax bill.

CORPORATES
ONE NATION PARTY, NICK XENOPHON TEAM, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RIO TINTO LIMITED – ASX RIO, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOODSIDE PETROLEUM LIMITED – ASX WPL

Cormann presses crossbench on tax cuts

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Original article by Joe Kelly
The Australian – Page: 4 : 20-Mar-18

Finance Minister Mathias Cormann says the Federal Government’s corporate tax cuts are needed to ensure that Australian businesses are internationally competitive. The Government will seek the Senate crossbenchers’ support for the tax package ahead of the May 2018 Budget, and it will require nine of them to vote in favour of the bill. The Nick Xenophon Team opposes the tax cuts, while One Nation leader Pauline Hanson is not convinced that reducing the tax rate for all companies to 25 per cent will result in higher growth in wages.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, NICK XENOPHON TEAM, ONE NATION PARTY, LIBERAL DEMOCRATIC PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Cut tax, funds will flow: BHP

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Original article by Matt Chambers, Andrew White
The Australian – Page: 1 & 2 : 7-Mar-18

BHP Billiton CEO Andrew Mackenzie argues that Australia cannot afford to not reduce its company tax rate. He says BHP would commence some proposed resources projects in Australia within months of federal parliament passing an across-the-board company tax cut, adding that at least some of these projects are dependent on tax reform. Meanwhile, economic modelling by KPMG suggests that Australia’s GDP will be reduced by around $A5bn if the nation does not respond to the Trump administration’s tax cuts with similar reforms. About 25,000 jobs would also be at risk, according to KPMG.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KPMG AUSTRALIA PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, THE GOLDMAN SACHS GROUP INCORPORATED, BLUESCOPE STEEL LIMITED – ASX BSL, SHELL COMPANY OF AUSTRALIA LIMITED

Treasury boss backs company tax cuts

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Original article by David Uren
The Australian – Page: 5 : 1-Mar-18

Treasury secretary John Fraser appeared before the Senate economics committee on 28 February, arguing the case for the Federal Government’s corporate tax package. He warned that Australia will have one of the highest company tax rates among developed nations following tax cuts in the US, the UK and France, and its international competitiveness will be adversely affected if across-the-board company tax cuts do not proceed. Meanwhile, Treasury adviser Michael Kouparitsas refuted Labor’s claim that foreign investors would be the main beneficiaries of the tax cuts.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN TAXATION OFFICE

Hanson dooms company tax cuts

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Original article by David Uren
The Australian – Page: 1 & 6 : 26-Feb-18

Prime Minister Malcolm Turnbull has reiterated that Australia must reduce its company tax rate in order to remain internationally competitive in the wake of the Trump administration’s tax reforms. However, One Nation leader Pauline Hanson says her party will not support the tax bill in the Senate. She has also questioned whether reducing the tax rate for all companies to 25 per cent would actually result in increased investment in Australia. Acting Prime Minister Mathias Cormann says the tax package must be passed in its entirety.

CORPORATES
ONE NATION PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, LIBERAL DEMOCRATIC PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, INTERNATIONAL MONETARY FUND

Qantas soars to record profit

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Original article by Annabel Hepworth
The Australian – Page: 17 & 20 : 23-Feb-18

Qantas has posted an underlying pre-tax profit of $A976m for the first half of 2017-18, an increase of 14.6 per cent. The airline’s statutory profit after tax rose 17.9 per cent to $A607m. Qantas is likely to resume paying corporate tax soon, after advising that it now has just $A368m worth of tax-loss credits. Meanwhile, CEO Alan Joyce has emphasised the need for a reduction in the corporate tax rate in order to ensure that the Australian economy is internationally competitive. Qantas shares rose $A0.31 to close at $A5.58 on 22 February.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, CITIGROUP PTY LTD, WESFARMERS LIMITED – ASX WES

Wesfarmers in push for tax cuts

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Original article by Eli Greenblat
The Australian – Page: 17 & 27 : 22-Feb-18

Wesfarmers has posted a 2017-18 interim net profit of $A212m, which is 86.6 per cent lower than previously. Group revenue rose 2.8 per cent to $A35.9bn, while Bunnings’ revenue in Australia and New Zealand was 10.2 per cent higher at $A6.566bn. Supermarket chain Coles posted revenue of $A19.978bn, which is in line with the previous corresponding period. Wesfarmers CEO Rob Scott has called for corporate tax cuts to ensure that Australian companies are globally competitive, adding that a lower tax rate will ultimately boost wages.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, COCA-COLA AMATIL LIMITED – ASX CCL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Cormann to pound company tax drum

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 22-Feb-18

The Federal Government’s company tax package requires the support of the majority of Senate crossbenchers. Acting Prime Minister Mathias Cormann has written to the 11 crossbenchers urging them to vote in favour of the tax package. The proposal to progressively reduce the tax rate for all companies from 30 per cent to 25 per cent has the support of Liberal Democrats senator David Leyonhjelm, who argues that it should in fact be reduced to 20 per cent. Meanwhile, a report from the International Monetary Fund has highlighted the economic benefits of reducing the company tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL DEMOCRATIC PARTY, INTERNATIONAL MONETARY FUND, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN CONSERVATIVES, WOOLWORTHS GROUP LIMITED – ASX WOW, BHP BILLITON LIMITED – ASX BHP, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN