CORPORATIONS – TAXATION – AUSTRALIA

PM tax plan in turmoil

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Original article by David Crowe, Eryk Bagshaw
The Age – Page: 1 : 23-May-18

The Federal Government’s corporate tax cuts package will be part of its policy agenda at the next election, according to Finance Minister Mathias Cormann. However, some Liberal MPs are concerned that the tax package could affect the Coalition’s prospects for re-election, while others have conceded that it has little chance of being passed by the Senate. Business leaders want the government to persist with the tax package, warning that shelving it would adversely affect six million "mum and dad” investors.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, ONE NATION PARTY, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Hanson sinks PM’s tax plan

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Original article by Joe Kelly
The Australian – Page: 1 & 6 : 22-May-18

The Federal Government’s company tax cuts package faces likely defeat in the Senate, after One Nation withdrew its support for the policy. One Nation leader Pauline Hanson has questioned whether the policy would result in more jobs, given that the tax cuts would take a number of years to fully implement. Hanson adds that the exclusion of an apprenticeship scheme and funding for a coal-fired power station from the May 2018 Budget also contributed to One Nation’s decision to change its stance on the tax cuts. However, it may reverse its decision if the Government agrees to new concessions.

CORPORATES
ONE NATION PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CENTRE ALLIANCE, AUSTRALIAN LABOR PARTY

Crossbenchers link Google levy to company tax support

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 21-May-18

The Federal Government will shortly release a discussion paper on the taxation of multinational technology companies. Centre Alliance senators Rex Patrick and Stirling Griff have signalled that the proposed "Google tax" may influence how they vote on the government’s corporate tax package. Senator Patrick says the party wants to ensure that digital companies are taxed appropriately, which it believes is not the case at present. Treasurer Scott Morrison flagged a tax crackdown on technology companies in his Budget speech.

CORPORATES
CENTRE ALLIANCE, AUSTRALIA. DEPT OF THE TREASURY, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

PRRT changes may be leverage on One Nation

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Original article by Phillip Coorey, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 18-May-18

The Federal Government requires the support of at least one additional Senate crossbencher for its company tax package. Proposed changes to the Petroleum Resources Rent Tax were absent from the May 2018 Budget, and sources have confirmed that this was partially to provide the government with a bargaining tool amid concerns that One Nation may back down on its support for the tax cuts. The changes to the PRRT would only affect future oil and gas projects, but industry players want the reforms to be enacted before the next election in case Labor wins and opts to subject existing projects to the new regime.

CORPORATES
ONE NATION PARTY

Leave tax cuts alone, Hinch tells Shorten

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Original article by Joe Kelly
The Australian – Page: 4 : 16-May-18

The tax rate for companies with turnover of up to $A50m is slated to be reduced to 27.5 per cent on 1 July, as part of the Federal Government’s enterprise tax plan. Opposition Leader Bill Shorten has committed to supporting tax cuts for businesses with turnover of up to $A2m, although Labor is believed to be open to raising this threshold to $A10m. Senate crossbencher Derryn Hinch says Labor should not seek to reverse the legislated tax cuts if it wins the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, MASTER GROCERS’ AUSTRALIA PTY LTD, IGA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Business demands clarity on cuts

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Original article by Joe Kelly
The Australian – Page: 4 : 15-May-18

The tax rate for companies with turnover of up to $A50m is slated to be reduced to 27.5 per cent on 1 July, as part of the Federal Government’s enterprise tax plan. Australian Chamber of Commerce & Industry CEO James Pearson has urged the Opposition to declare its stance on the tax cuts. He says businesses may choose not to utilise the extra cash due to concerns that the tax cuts may be reversed if Labor wins the next election. Council of Small Business of Australia CEO Peter Strong has also called for Labor to clarify its position.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, CENTRE ALLIANCE

Split tax cut bill, senators warn PM

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Original article by Joe Kelly
The Australian – Page: 4 : 14-May-18

One Nation leader Pauline Hanson says the Federal Government must legislate income tax cuts proposed for 2018-19 separately from future tax relief outlined in the May 2018 Budget. Hanson argues that there could be a recession before all three phases of the seven-year tax cuts package take effect. Centre Alliance also supports splitting the tax cuts bill. Both parties, which have five seats in the Senate, also oppose any move by Opposition Leader Bill Shorten to wind back company tax cuts that have already been legislated.

CORPORATES
ONE NATION PARTY, CENTRE ALLIANCE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Shorten ups ante in tax cuts battle

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Original article by Simon Benson, Rachel Baxendale
The Australian – Page: 1 & 6 : 11-May-18

Opposition Leader Bill Shorten has used his Budget reply speech to outline Labor’s proposed income tax reforms, which includes an annual tax cut of up to $A928 for people on low and middle incomes. Labor will support the first phase of the Federal Government’s tax cuts package, but tax brackets will remain unchanged beyond this. Labor has also committed to reinstating the two per cent deficit levy, which would lift the tax rate for people on the highest incomes to 49 per cent. Shorten also said Labor will reverse company tax cuts that have already been legislated if it wins the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS

Corporate take will hit $100b in 2021-22

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Original article by Ben Potter
The Australian Financial Review – Page: B6 : 9-May-18

The May 2018 Budget papers show that company tax revenue is forecast to be $A100.7bn in 2021-22, compared with $A83.5bn in 2017-18. The rally in commodity prices has bolstered company tax revenue, although economists caution that this may not be sustainable. In addition, the corporate tax take could fall in future years if the government passes legislation for an across-the-board reduction in the company tax rate. The government expects companies to increase capital investment as a result of the tax cuts, but factors such as a recession could dampen investment intentions.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD

Hold-out senators set test for tax bill

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Original article by Ben Packham
The Australian – Page: 4 : 8-May-18

Centre Alliance senator Rex ­Patrick says the contents of the May 2018 Budget may determine whether himself and colleague Stirling Griff hold further talks with the Federal Government regarding its corporate tax cuts package. Factors such as a clear strategy for a return to surplus and assurances that spending on social services will not be reduced in future years to finance the tax cuts are among Centre Alliance’s priorities in the Budget. The company tax package requires an additional two votes in the Senate.

CORPORATES
CENTRE ALLIANCE, NICK XENOPHON TEAM, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, HIGH COURT OF AUSTRALIA