CORPORATIONS – TAXATION – AUSTRALIA

Banks lower now than during GFC: Costello

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Original article by James Thomson, Tom McIlroy
The Australian Financial Review – Page: 5 : 4-May-18

Corporate Australia is getting tarnished by the banking royal commission, according to former federal treasurer Peter Costello. He says the banks survived the global financial crisis so unscathed that they became complacent, while the likelihood that the federal government’s full company tax cuts package will be passed by the Senate is looking highly unlikely because of the royal commission. James Pearson, the head of the Australian Chamber of Commerce & Industry, says companies in other sectors should not have to miss out on tax cuts because of failings in the financial services sector.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF FINANCE, BUSINESS COUNCIL OF AUSTRALIA

Company tax cuts lift jobs growth

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Original article by Adam Creighton
The Australian – Page: 1 & 4 : 3-May-18

Small Business Council of Australia CEO Peter Strong says an analysis of data on the impact of tax cuts for businesses with turnover of up to $A2m strengthens the case for across-the-board corporate tax relief. The analysis by AlphaBeta shows that 19 per cent of businesses that received the tax cut in 2015 had hired additional staff in the following two years, while three per cent increased their employees’ wages. Companies that received the tax cut also created jobs at a faster pace than companies that were just above the turnover threshold.

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, ALPHABETA, XERO LIMITED – ASX XRO, BUSINESS COUNCIL OF AUSTRALIA, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Convert bank tax cuts into compo for victims: Hanson

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Original article by Ben Packham
The Australian – Page: 2 : 23-Apr-18

Financial Services Minister Kelly O’Dwyer has rejected a proposal by One Nation leader Pauline Hanson to shelve a proposed tax cut for banks and divert the revenue into a compensation fund for victims of misconduct in the financial services sector. Hanson says the fund should also be used to pay the costs of the banking royal commission and to bail out banks in the event of a financial crisis. Opposition leader Bill Shorten has also advocated a compensation fund for victims of misconduct in the banking sector.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

We’re sticking to full tax cut plan: Morrison

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 18-Apr-18

Treasurer Scott Morrison has ruled out seeking a deal with crossbench senator Derryn Hinch to secure passage of its corporate tax package. Hinch has indicated that he may be open to supporting tax cuts for companies with turnover of up to $A500m, but Morrison has stressed that the Federal Government will persist with its policy of progressively reducing the tax rate for all companies. Meanwhile, Morrison says the May 2018 Budget will be "responsible", and he has rejected suggestions by National Party leader Michael McCormack that it will include some "goodies" for taxpayers.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, COMMONWEALTH HEADS OF GOVERNMENT MEETING, AUSTRALIA. DEPT OF FINANCE

Any reforms of tax is better than none: BCA

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Original article by Tom McIlroy
The Australian Financial Review – Page: 11 : 12-Apr-18

The Federal Government still needs the support of crossbench senator Tim Storer for its corporate tax package. Storer has called for a broader range of tax reforms rather than simply reducing the tax rate for all companies. However, the Business Council of Australia has used a submission to a Senate inquiry to argue that changes to the company tax rate should not be stalled, as broader reforms will take too long to achieve. Storer has hired journalist Jim Middleton as a senior adviser.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, VICTORIA UNIVERSITY, THE AUSTRALIA INSTITUTE LIMITED

Cook tries to ease Santos bid tax concerns

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Original article by Matt Chambers
The Australian – Page: 19 & 30 : 6-Apr-18

Harbour Energy CEO Linda Cook has given her assurance that Santos will remain an Australian company if Harbour Energy’s $A13.5 billion bid for the oil and gas company succeeds. Responding to concerns that Harbour Energy is registered in the Cayman Islands and that corporate tax from Santos might be reduced if Harbour Energy assumes control of it, Cook stressed that the company Harbour Energy has established to acquire Santos is Australian, and therefore subject to the same amount of tax that Santos pays at the moment.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN GROUP, HONY CAPITAL, ROYAL DUTCH SHELL PLC, CHRYSAOR, MORGAN STANLEY AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED

ALP links: 189-vote senator blocks $36bn tax cuts

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Original article by Michael Owen, Ben Packham
The Australian – Page: 1 & 4 : 29-Mar-18

The Federal Government still hopes to secure the two Senate votes that are required to pass its corporate tax cuts package. The Government is continuing to negotiate with Derryn Hinch, but fellow crossbencher Tim Storer says he cannot support the bill in its current form. He argues that the forgone revenue from the company tax cuts should instead be used to finance social and economic programs. Storer gained just 189 votes as a Nick Xenophon Team candidate at the 2016 election, and he was elevated to the Senate after Skye Kakoschke-Moore was ruled ineligible due to dual citizenship. He had resigned from the Australian Labor Party in 2015.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, AUSTRALIAN REPUBLICAN MOVEMENT

Company tax cut delayed by two holdout senators

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Mar-18

The Federal Government will put its corporate tax cuts package on hold until May after failing to secure the support of Senate crossbenchers Derryn Hinch and Tim Storer. The Government had gained the support of seven crossbenchers and had hoped to pass the legislation before Easter. Meanwhile, the Business Council of Australia has launched a cross-platform campaign in support of the proposed company tax cuts, while Prime Minister Malcolm Turnbull has called upon the business sector to lobby crossbenchers to back the tax cuts.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Secret survey shows tax cuts won’t go to jobs

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Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 4 : 27-Mar-18

Business Council of Australia members were asked in a recent survey how they would respond in the event of company tax cuts. They were given four options: returning funds to shareholders; boosting investment; giving current employees a pay rise; or hiring more staff. It is understood that less than 20 per cent chose either of the last two options. The responses seem to be at odds with a letter that the BCA and 10 prominent CEOs sent to all senators in the week ending 23 March, in which it suggested that implementing tax cuts would ultimately lead to more jobs and greater wage growth.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, QANTAS AIRWAYS LIMITED – ASX QAN, MYOB GROUP LIMITED – ASX MYO, BHP BILLITON LIMITED – ASX BHP, ENERGYAUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, FORTESCUE METALS GROUP LIMITED – ASX FMG, JBS AUSTRALIA PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, WESFARMERS LIMITED – ASX WES

Crossbenchers get green light to horsetrade on tax

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Original article by Ben Packham, Victoria Laurie
The Australian – Page: 1 & 4 : 26-Mar-18

A report by international tax experts Jack Mintz and Philip Bazel notes that Australia’s company tax rate is currently the fourth-highest among OECD member nations. However, they warn that Australia will be ranked second within two years unless the tax rate is reduced, while the nation risks losing global capital inflows. Finance Minister Mathias Cormann says the Federal Government is open to compromises with crossbench senators Derryn Hinch and Tim Storer in return for their support for the company tax cuts bill.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNIVERSITY OF CALGARY, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY