GOODS AND SERVICES TAX (GST) – AUSTRALIA

WA ready to fight to keep sweet GST deal

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Original article by Jesinta Burton
The Australian Financial Review – Page: 3 : 29-Jul-25

Western Australia plans to resist growing calls for changes to the way that the GST is distributed, with WA having benefited greatly from a 2018 decision by the then Coalition government to introduce a GST floor. It has resulted in states getting at least $0.75 for every dollar raised, while the federal government makes top-up payments to ensure that no state is worse off under the decision. It is understood the WA government is planning a national campaign in defence of its favourable deal, ahead of a Productivity Commission review of the GST reforms that is due to be handed down next year.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION

GST warning in roundtable revamp

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Original article by Matthew Cranston, Greg Brown, Sarah Elks
The Australian – Page: 1 & 4 : 25-Jun-25

Prime Minister Anthony Albanese had pitched the federal government’s plans to bring unions, business leaders and community groups together in August as a productivity roundtable. However, Treasurer Jim Chalmers has sought to broaden the scope of the summit by describing it as an "economic reform roundtable". He has also reiterated that the goods and services tax will be on the agenda; Chalmers adds that changes to the GST will only be considered if they are revenue-neutral and in the national interest.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

CBA chief in call for radical tax overhaul

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Original article by Paulina Duran
The Australian – Page: 19 : 27-Mar-24

Commonwealth Bank of Australia CEO Matt Comyn has called for a major revamp of the nation’s tax system as part of the federal government’s economic growth strategy. Amongst other things, Comyn has proposed the abolition of inefficient taxes such as stamp duties and payroll tax. He has also advocated streamlining the personal income tax regime and the existing tax brackets, including lifting the tax-free threshold to $20,000. Comyn adds that the GST could be increased from 10 per cent to 15 per cent to offset the loss of personal income tax revenue, while he has proposed banning cash payments of more than $500 in order to combat the black economy.

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COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

NSW slams GST pool as WA gets extra $6.2b

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Original article by Michael Read, Samantha Hutchinson, Tom Rabe, Gus McCubbing
The Australian Financial Review – Page: 3 : 13-Mar-24

Victoria will gain the most from the annual distribution of goods and services tax revenue. The Commonwealth Grants Commission has advised that the state will be allocated $23.7bn of GST revenue in 2024-25, an increase of $3.8bn. Meanwhile, Western Australia will continue to benefit from the GST ‘floor’ that the former Coalition government introduced in 2018; the state will receive an additional $6.2bn in 2024-25 that it not have been entitled to under the previous GST distribution arrangements. NSW Treasurer Daniel Mookhey has called for changes to the system for distributing GST revenue, after the state’s share was reduced to $26.1bn in 2024-25.

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AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, NEW SOUTH WALES. THE TREASURY

Up to 150 Australian tax office staff investigated over $2bn social media scam

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Original article by
The Guardian Australia – Page: Online : 14-Feb-24

The Australian Taxation Office has recovered more than $2bn via Operation Protego, which was set to investigate fraudulent claims for goods and services tax refunds. An additional $2.7bn in GST refunds was stopped just before payment was made. An auditor-general’s report has revealed that 57,000 people were involved in the scam, including about 150 employees of the ATO. There had been more than 100 arrests and 16 convictions over the same as of August 2023.

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AUSTRALIAN TAXATION OFFICE

States take on Albanese in GST spat

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Original article by Phillip Coorey, Patrick Durkin
The Australian Financial Review – Page: 1 & 4 : 30-Nov-23

The federal government is under pressure from the states and territories to permanently retain the goods and services ‘no worse off guarantee’, which is slated to end by 2026-27. The guarantee was introduced in 2018, with the aim of compensating the states for GST revenue they lost as part of a deal to put a ‘floor’ under the allocation for Western Australia. Victoria’s Treasurer Tim Pallas contends that ending the guarantee would be ‘disastrous’ for the states, as they would be collectively $4.9bn worse off each year. The guarantee will be on the agenda for a meeting of the state and federal treasurers in Brisbane on Friday.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE

WA flags battle over GST split

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Original article by Brad Thompson
The Australian Financial Review – Page: 1 & 2 : 12-Jan-21

Western Australian Premier Mark McGowan says other states and the federal government must not seek to change the existing arrangement for distributing goods and services tax revenue. WA’s share of GST revenue is currently $0.70 in the dollar, having fallen to a low of about $0.30 in the dollar during the last mining boom. New South Wales in particular has criticised the GST equalisation deal, but McGowan argues that NSW now receives more than $0.90 in the dollar from GST revenue. He has also urged the federal government to resolve the ongoing trade tensions with China.

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WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Reform taxes to help economy recover, IMF tells Australia

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Original article by John Kehoe
The Australian Financial Review – Page: 2 : 26-Oct-20

Harald Finger of the International Monetary Fund has expressed support for federal government measures such as the JobKeeper wage subsidy scheme in response to the coronavirus pandemic. Finger also agrees that the JobKeeper scheme needs to be wound back as the domestic economy recovers, and the focus should shift to economic reforms that boost growth in productivity and investment. The IMF Mission chief to Australia also advocates a reduction in the corporate tax rate and increasing the goods and services tax.

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INTERNATIONAL MONETARY FUND

Twenty years on, burning platform is here for GST reform: Ken Henry

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 36 : 29-Jun-20

Former Treasury secretary Ken Henry has called for an overhaul of Australia’s tax system in response to the coronavirus-induced recession. Henry was a top tax adviser to the Howard government when it introduced the goods and services tax. Former federal treasurer Peter Costello says Australia’s tax system has become increasingly complex since the GST was introduced two decades ago, arguing that it needs to be simplified. He concedes that the GST base should have been broader with fewer exemptions; however, he is cautious about expanding it now, arguing that ‘populist politics’ in the Senate could result in even more exemptions than at present.

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AUSTRALIA. DEPT OF THE TREASURY

No justice for SMEs when the tax office smells blood

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Original article by Robert Gottliebsen
The Weekend Australian – Page: 31 : 21-Dec-19

The Administrative Appeals Tribunal’s landmark ruling in favour of the Australian Taxation Office against gold refiner EBS has significant implications for small and medium enterprises. The case – which centred on the tax treatment of bullion and scrap gold under the GST regime – had gone on for about six years, and the appeals process is likely to take another several years. The majority of SMEs simply cannot afford the cost of such lengthy legal proceedings. The small business appeals tribunal may provide some relief for SMEs, but government action is needed to make it easier for SMEs to conduct business in Australia.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, EBS