CORPORATIONS – TAXATION – AUSTRALIA

Big employers pile on the pressure over company tax

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Original article by Simon Benson
The Australian – Page: 4 : 21-Feb-18

The retail industry has urged the Senate crossbenchers to support the Federal Government’s legislation to reduce the company tax rate from 30 per cent to 25 per cent. The Australian Retailers Association’s executive director Russell Zimmerman says the nation’s high corporate tax rate hinders the ability of retailers to hire additional staff and increase wages, while Woolworths CEO Brad Banducci says a lower tax rate would enable the company to increase its investment in its Australian business. The National Retail Association argues that a lower tax rate would result in the creation of more entry-level jobs in the sector.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, WOOLWORTHS GROUP LIMITED – ASX WOW, NATIONAL RETAIL ASSOCIATION LIMITED, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Plans to cut company tax responsible – Morrison

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 19-Feb-18

Treasurer Scott Morrison has downplayed concerns expressed by Reserve Bank governor Philip Lowe about the potential impact of the Federal Government’s proposed company tax cuts. Morrison has stressed that Budget projections have already taken into account the long-term effect of the tax cuts, adding that the Government will not implement any policies that could threaten its timetable for returning the Budget to surplus. The Government also wants to include personal income tax cuts in the May 2018 Budget, again without risking the target date for a surplus.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY, BIRINYI ASSOCIATES, STANDARD AND POOR’S 500 INDEX

Cut tax and see wages grow

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Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 2 : 12-Feb-18

The Federal Government’s legislation for an across-the-board reduction in the company tax rate will be put before the Senate in the week beginning 12 February. BHP Billiton Andrew Mackenzie, Qantas CEO Alan Joyce and Woodside Petroleum’s chairman-elect Richard Goyder have urged the Senate crossbenchers to pass the bill, warning that failure to do so will reduce Australia’s international competitiveness and deter investment. They also argue that reducing the tax rate for all companies will encourage businesses to hire more staff and increase wages.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESFARMERS LIMITED – ASX WES, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, ONE NATION PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AMERICAN AIRLINES INCORPORATED, FEDERAL EXPRESS CORPORATION, AT&T CORPORATION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, VISY INDUSTRIES AUSTRALIA PTY LTD

PM switches to plan B on tax reform

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Original article by Joe Kelly, Simon Benson
The Australian – Page: 1 & 8 : 9-Feb-18

The Senate is set to reject the Federal Government’s corporate tax cuts package after One Nation and the Nick Xenophon Team advised that they will vote against it. The two minor parties have a combined six seats in the Senate, and just three cross-benchers currently support the tax reforms. The lower house passed the company tax cuts bill on 8 February, and Treasurer Scott Morrison says the Government remains committed to getting the tax cuts through the Senate. However, the package’s looming defeat in the upper house will allow the Government to focus on personal income tax cuts in the May 2018 Budget.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, ONE NATION PARTY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL DEMOCRATIC PARTY, AMP LIMITED – ASX AMP

Use tax cuts to boost wages: ex-BCA boss

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 8-Feb-18

Former Business Council of Australia president Tony Shepherd says employees and shareholders of large companies should directly benefit from any reduction in the corporate tax rate via higher wages and increased dividend payouts. Many large companies in the US have announced wage rises in response to the Trump administration’s tax package. However, Treasurer Scott Morrison and Opposition Leader Bill Shorten have questioned the merits of a "social contract" in Australia if across-the-board corporate tax cuts are passed by federal parliament.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, McDONALD’S AUSTRALIA LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

Wage growth to pick up

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Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Feb-18

Federal Treasurer Scott Morrison argues that a proposed across-the-board reduction in the company tax rate will boost wages and job security, noting that US companies have already begun increasing wages in the wake of the Trump administration’s tax reforms. He has called on businesses to promote the benefits of the proposed company tax cuts for the broader economy. Morrison has also indicated that financing personal income tax cuts via an increase in the goods and services tax will not be on the Coalition’s policy agenda for the next federal election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

PM’s tax cut drive for companies, workers

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

Prime Minister Malcolm Turnbull will use a speech on 1 February to push for broad-based tax reforms that provide tax cuts for individuals and companies. He will state that the Coalition will aim to deliver tax relief to middle-income earners while retaining its goal of returning the Budget to surplus in 2020-21. Turnbull has reiterated that company tax cuts will be at the top of the Coalition’s agenda when Parliament resumes, stressing that the issue has become more urgent in the wake of tax reforms in the US.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN ELECTORAL COMMISSION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Cut tax to create jobs: CEOs

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Original article by Joanna Mather, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 22-Jan-18

Walmart is among the US companies that are increasing their wage rates in response to the Trump administration’s tax reforms. Federal Treasurer Scott Morrison says Australian now needs to "catch" up to the US with regard to tax reform, noting that Labor’s opposition to the Government’s company tax package means the nation has missed the opportunity to take the lead on tax reform. Meanwhile, Qantas CEO Alan Joyce and MYOB CEO Tim Reed are among the business leaders who have emphasised the economic benefits of reducing the corporate tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, WAL-MART STORES INCORPORATED, QANTAS AIRWAYS LIMITED – ASX QAN, MYOB GROUP LIMITED – ASX MYO, XERO LIMITED – ASX XRO, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, APPLE INCORPORATED, AMP LIMITED – ASX AMP, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Wesfarmers: Tax cut spurs wages growth

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Original article by Joanna Mather, Brad Thompson, Andrew Tillett
The Australian Financial Review – Page: 1 & 8 : 15-Jan-18

A number of US companies have announced plans to increase minimum pay rates or provide bonuses to staff in response to the Trump administration’s company tax cuts. The Australian Government will reintroduce its across-the-board company tax cuts package when parliament resumes in February, and Revenue Minister Kelly O’Dwyer has stressed the need for the nation’s tax regime to remain competitive. Wesfarmers CEO Rob Scott and the Group of 100’s Australian president Andrew Porter argue that company tax cuts could boost local wages.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, WESFARMERS LIMITED – ASX WES, GROUP OF 100 INCORPORATED, WAL-MART STORES INCORPORATED, FIAT CHRYSLER AUTOMOBILES NV, AMERICAN AIRLINES INCORPORATED, AT&T CORPORATION, BANK OF AMERICA CORPORATION, WELLS FARGO BANK, REPUBLICAN PARTY (UNITED STATES), COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI

Reworked tax package to include personal cut

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Original article by David Uren
The Australian – Page: 2 : 12-Jan-18

The Australian Labor will again vote against a bill to reduce the tax rate for all companies if it is reintroduced to the Senate. Shadow treasurer Chris Bowen argues that there are greater priorities for the Budget. Financial Services Minister Kelly O’Dwyer has urged Labor to support the legislation, which will return to the Senate when parliament resumes in February. There is speculation that both company and personal income tax cuts will feature in the May 2018 Budget if the upper house rejects the legislation again.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM