CORPORATIONS – TAXATION – AUSTRALIA

Morrison carves up super to fund business tax cuts

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: B1-B2 : 4-May-16

The Australian Government forecasts that the Budget deficit will rise from $A37.4bn to $A39.9bn in 2015-16, while it expects the nation’s net debt to peak at 25.8 per cent of GDP in 2017-18. The May 2016 Budget outlines plans to progressively reduce the tax rate for all businesses to 25 per cent by 2026-27. Businesses whose turnover does not exceed $A10m will benefit from 1 July, when their tax rate will be reduced to 27.5 per cent. The Budget also includes changes to the tax regime for superannuation contributions and an increase in the $A80,001 income tax threshold to $A87,001.

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

Tax cut to 27.5pc for SMEs while big end of town waits

roymorgansocial Leave a comment

Original article by Sid Maher
The Australian – Page: 1 & 4 : 3-May-16

The Australian Government’s May 2016 Budget will include a one per cent reduction in the small and medium enterprise tax rate, to 27.5 per cent. The lower tax rate is expected to apply to companies with turnover of up to $A5m, compared with a threshold of $A2m at present. Unincorporated businesses and sole traders are also expected to receive tax relief in the Budget. However, the tax rate for large companies will remain at 30 per cent, although the Government plans to progressively reduce it to 25 per cent.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Company tax cuts: in the future

roymorgansocial Leave a comment

Original article by Phillip Coorey, Patrick Durkin, Jamie Freed
The Australian Financial Review – Page: 1 & 4 : 2-May-16

The Australian Government’s May 2016 Budget is expected to provide tax relief for small and medium enterprises. However, the Government is likely to opt to phase in a reduction in the corporate tax rate over a period of time. The Business Council of Australia continues to push for the tax rate for all businesses to be initially reduced to 28.5 per cent, and eventually to just 25 per cent. Meanwhile, some business leaders argue that a priority for the Budget should be ensuring that government spending is sustainable.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, FORTESCUE METALS GROUP LIMITED – ASX FMG, SEEK LIMITED – ASX SEK, AUSTRALIA POST, AUSTRALIA. DEPT OF THE TREASURY, KPMG AUSTRALIA PTY LTD, NESTLE AUSTRALIA LIMITED, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN LABOR PARTY, SQUARE PEG CAPITAL PTY LTD

Modelling shows company tax cut ‘not in national interest’

roymorgansocial Leave a comment

Original article by Ben Potter
The Australian Financial Review – Page: 4 : 13-Apr-16

Victoria University’s Centre of Policy Studies has released economic modelling which concludes that a corporate tax rate cut would in turn result in a reduction in real incomes. The modelling was undertaken by Dr Janine Dixon, who says that while a lower company tax rate would increase domestic production, real incomes would be cut by between $A800 and $A2,000 in present value terms. The corporate tax rate is currently 30 per cent.

CORPORATES
VICTORIA UNIVERSITY. CENTRE OF POLICY STUDIES, AUSTRALIA. DEPT OF THE TREASURY, MELBOURNE ECONOMIC FORUM

Mining sector backs 20pc company rate

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 29-Mar-16

A report produced by Canadian academic Jack Mintz has concluded that Australia’s corporate tax rate is uncompetitive, and proposes a progressive reduction from 30 per cent to just 20 per cent. The report was commissioned by the Minerals Council of Australia. The Federal Government’s May 2016 Budget is widely tipped to include a reduction in the company tax rate.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Cutting company tax good for workers, business leaders insist

roymorgansocial Leave a comment

Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 8 : 2-Mar-16

Business Council of Australia president Catherine Livingston has told a roundtable forum of the need for structural reform of the tax system to stimulate economic growth. She also argued the case for reducing the corporate tax rate to bring it in line with the tax rate for small businesses. The roundtable was organised by "The Australian Financial Review" and the BCA. The other participants included Commonwealth Bank CEO Ian Narev, Qantas CEO Allan Joyce and Wesfarmers CEO Richard Goyder.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, QANTAS AIRWAYS LIMITED – ASX QAN, WESFARMERS LIMITED – ASX WES, COCA-COLA AMATIL LIMITED – ASX CCL, TELSTRA CORPORATION LIMITED – ASX TLS, ASX LIMITED – ASX ASX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

‘Big-bang’ tax reform gone

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 4 : 12-Feb-16

The Australian Government has abandoned plans for large-scale tax reform underpinned by a rise in the GST, although it still wants to reduce personal income tax rates. However, Treasurer Scott Morrison has conceded that tax cuts will have to be much more modest than originally intended. He also said that any reduction in the company tax rate would have to be implemented over several years. Meanwhile, Treasury estimates that economic growth will slow by 0.35 per cent over four years if income taxes are not reduced.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, KPMG AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF HUMAN SERVICES

Don’t play me for a fool, tax chief tells tech giants

roymorgansocial Leave a comment

Original article by Adam Creighton
The Australian – Page: 2 : 11-Feb-16

Australia’s Commissioner of Taxation, Chris Jordan, has told a Senate committee that he is prepared to pursue legal action against multinational companies that continue to evade their tax liabilities. He said six companies have now been identified by the Australian Taxation Office as being at the highest risk of non-compliance with their tax obligations, while it is reviewing the tax affairs of 290 large companies.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, APPLE INCORPORATED, MICROSOFT CORPORATION, CHEVRON CORPORATION, ORICA LIMITED – ASX ORI

Imputation query as company tax cut gives biggest bang

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 10-Feb-16

Prime Minister Malcolm Turnbull has ruled out increasing the GST to finance income tax cuts, after telling Coalition MPs that economic modelling has shown that it would not be economic feasible. The modelling showed that using a higher GST to finance company tax cuts would achieve the greatest economic benefit. Meanwhile, Australian Industry Group CEO officer Innes Willox has proposed reducing the company tax rate from 30 per cent to 20 per cent by scrapping the dividend imputation system.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, MACQUARIE UNIVERSITY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER, COUNCIL FOR THE AUSTRALIAN FEDERATION

Treasury against debt tax trade-off

roymorgansocial Leave a comment

Original article by Joanna Mather, Primrose Riordan
The Australian Financial Review – Page: 1 & 4 : 25-Jan-16

Federal Treasurer Scott Morrison says that reducing tax deductions will not generate sufficient revenue to fund tax reforms. However, the Treasury’s submission to parliament’s economics committee has argued against financing a corporate tax cut via the abolition of tax deductions for corporate debt. This view is shared by the Business Council of Australia and companies such as CSL and Inpex, which have also made submissions to the inquiry.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, CSL LIMITED – ASX CSL, INPEX CORPORATION, KPMG AUSTRALIA PTY LTD, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, LIBERAL PARTY OF AUSTRALIA