CORPORATIONS – TAXATION – AUSTRALIA

High company tax rate halted Sydney shift for Catcha Group

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Original article by Ben Potter
The Australian Financial Review – Page: 4 : 10-Jun-16

Catcha Group founder Patrick Grove has indicated that the corporate tax rate was a key factor in his decision not to relocate some of his Malaysia-based business empire’s operations to Australia. He adds that the corporate tax rate meant Australia was ruled out when he was considering shifting Catcha’s headquarters to a global city several years ago. The Federal Government intends to reduce the tax rate for all companies to 25 per cent over the next decade.

CORPORATES
CATCHA GROUP, IFLIX LIMITED, IPROPERTY GROUP LIMITED, ICAR ASIA LIMITED – ASX ICQ, ENSOGO LIMITED – ASX E88, REA GROUP LIMITED – ASX REA, NETFLIX INCORPORATED, AUSTRALIAN LABOR PARTY, ANDERSEN, TECHNOLOGY ONE LIMITED – ASX TNE, ONESHIFT PTY LTD, POWEREDLOCAL

Business rebuts tax-cut attacks

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 9-Jun-16

The heads of four Australian employers’ and industry groups have criticised opponents of the Federal Government’s proposal to progressively reduce the company tax rate over 10 years. They note that GDP will be boosted by one per cent on an ongoing basis as a result of the tax cuts, and argue that there is no justification for taxing businesses at a different rate depending on their size. The business leaders also warn that opposition to the tax cuts reflects broader anti-business sentiment.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED

Tax cut gain ‘twice cost to the budget’

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Original article by David Crowe
The Australian – Page: 1 & 6 : 8-Jun-16

Research by Chris Murphy of Independent Economics has concluded that the Australian Government’s proposal to progressively reduce the company tax rate will have significant economic benefits. Murphy has estimated that the "consumer benefit" from the tax cuts will be around $A2.39 for every $A1.00 in forgone revenue. Murphy has also rejected suggestions that the tax cuts will boost the after-tax profits of offshore investors.

CORPORATES
INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN LABOR PARTY, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED, AUSTRALIAN GREENS, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED)

Company levy ‘just 4.3pc of total take’

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Original article by Annabel Hepworth
The Australian – Page: 6 : 1-Jun-16

Analysis by Deloitte Access Economics suggests that the Australian Government will collect some $A1.11trn in corporate tax revenue between 2016-17 and 2026-27. It is estimated that the Government’s proposed company tax cuts will account for no more than 4.3 per cent of this revenue, and just 0.8 per cent of the Government’s overall revenue during this period. Minerals Council of Australia CEO Brendan Pearson says the Deloitte figures demonstrate that the proposed tax cuts are justified.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MMG LIMITED – ASX MMG

Morrison worried about growth

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Original article by Jacob Greber, Mark Mulligan
The Australian Financial Review – Page: 1 & 4 : 31-May-16

Economists forecast that the Australian economy expanded by just 0.6 per cent in the March 2016 quarter. Data to be released on 31 May is tipped to show GDP growth of 2.7 per cent year-on-year during the quarter, compared with three per cent previously. Treasurer Scott Morrison has used the slowing economy to defend the Federal Government’s push to reduce the corporate tax rate. He has also criticised Opposition Leader Bill Shorten for opposing tax cuts that would stimulate economic activity.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA

Labor veteran brands Shorten ‘anti-business’

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Original article by Annabel Hepworth
The Australian – Page: 1 & 6 : 30-May-16

Business leaders have criticised the Australian Labor Party’s handling of the issue of corporate tax during the 2016 federal election campaign. Minerals Council of Australia CEO Brendan Pearson has described Labor’s approach to the issue as "disappointing", while Queensland’s former Labor treasurer Keith DeLacy has accused federal Labor’s tax policy of being "anti-business". Meanwhile, former ANZ Bank chairman John Morschel has expressed concern that Labor’s election policies would result in a big increase in government spending.

CORPORATES
AUSTRALIAN LABOR PARTY, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACARTHUR COAL LIMITED, CUBBIE STATION, NSW BUSINESS CHAMBER LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Business to push Turnbull tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 10 : 20-May-16

The Business Council of Australia will spearhead a campaign by business groups to promote the Australian Government’s proposal to progressively reduce the company tax rate to 25 per cent. The BCA has not become directly involved in a federal election campaign since 2007. The advertising campaign is expected to embrace traditional and online media, and be launched at around the mid-point of the election campaign.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, AUSTRALIAN MEDICAL ASSOCIATION LIMITED, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, JWS RESEARCH PTY LTD

Company tax drop will pay off, says McKibbin

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Original article by Ben Potter
The Australian Financial Review – Page: 7 : 13-May-16

Prominent economist Warwick McKibbin has urged the Coalition to proceed with its proposed reduction in the company tax rate despite its high cost. The policy is estimated to cost $A48 billion over 10 years but McKibbin says it will add $A160 billion to GDP in the long-term. He disagrees with the assessment of the policy’s future benefits by Victoria University’s Janine Dixon, who calculated that a company tax cut would increase GDP while reducing gross national product by between $A800 and $A2,000 per capita.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, VICTORIA UNIVERSITY. CENTRE OF POLICY STUDIES

Business lashes PM on super, tax

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Original article by Patrick Durkin, Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 11-May-16

Asciano chairman Malcolm Broomhead has questioned whether the Australian Government will act on its May 2016 Budget commitment to progressively reduce the company tax rate to 25 per cent. He says the Government has already broken its promise to make no changes to the superannuation regime, and criticised the retrospective nature of the super tax reforms. Treasurer Scott Morrison and Foreign Minister Julie Bishop have emphasised that the tax changes will only apply to future rather than past super earnings.

CORPORATES
ASCIANO LIMITED – ASX AIO, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, WHITEHAVEN COAL LIMITED – ASX WHC, BHP BILLITON LIMITED – ASX BHP, HOST-PLUS, INSTITUTE OF PUBLIC AFFAIRS LIMITED, LIBERAL PARTY OF AUSTRALIA

It’s time to reignite growth

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Original article by Annabel Hepworth, David Swan
The Australian – Page: 19 & 22 : 9-May-16

Business leaders say workplace reform, corporate taxes and economic stimulus are among the issues that need to be addressed during the 56-day federal election campaign. Andrew Harding, the head of Rio Tinto’s iron ore division, has stressed the need for policies that will promote economic growth, a view shared by Virgin Australia Holdings CEO John Borghetti. Business Council of Australia CEO Jennifer Westacott also argues that measures to boost economic growth should be a priority, while the Australian Industry Group has emphasised the need for tax reform.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, OFX, AUSTRALIAN LABOR PARTY