PM splurges on projects to soothe WA’s anger over GST carve-up

Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 27-Apr-18

Prime Minister Malcolm Turnbull has offered to give Western Australia a $A187 million top-up goods and services tax payment. The money is to be spent on expanding or refurbishing three hospitals, while Turnbull is also expected to announce funding for extra train stations and a road bypass in outer Perth suburbs. The Liberal Party currently holds 11 of the 16 federal seats in WA, but five are held with a margin of less than seven per cent.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, LIBERAL PARTY OF AUSTRALIA

Gold traders’ scam ripped off $1bn GST

Original article by Ben Butler
The Australian – Page: 21 : 1-Mar-18

The Australian Taxation Office estimated in February 2017 that goods and services tax fraud by gold traders had cost the federal government around $A700m in revenue. However, ATO deputy commissioner Timothy Dyce has told a Senate committee that the forgone revenue may now be almost $A1bn. He added that legislation enacted in April 2017 has closed the loophole which enabled gold traders to avoid GST liability.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, NATIONAL PARTY OF AUSTRALIA

Wage growth to pick up

Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Feb-18

Federal Treasurer Scott Morrison argues that a proposed across-the-board reduction in the company tax rate will boost wages and job security, noting that US companies have already begun increasing wages in the wake of the Trump administration’s tax reforms. He has called on businesses to promote the benefits of the proposed company tax cuts for the broader economy. Morrison has also indicated that financing personal income tax cuts via an increase in the goods and services tax will not be on the Coalition’s policy agenda for the next federal election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

WA Lib leader issues political suicide GST warning to Turnbull

Original article by Brad Thompson
The Australian Financial Review – Page: 5 : 12-Jan-18

Western Australia’s Opposition Leader Mike Nahan is generally supportive of the Productivity Commission’s recommendations regarding the distribution of goods and services tax revenue. However, he has suggested that the Australian Capital Territory and the Northern Territory should be directly funded by the Federal Government, and GST revenue should be distributed solely to the states. Nahan also says any attempt by the Federal Government to make changes to the GST cannot succeed without the Australian Labor Party’s support.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER

Fresh GST fight with states looms

Original article by Andrew Tillett
The Australian Financial Review – Page: 3 : 3-Jan-18

Federal Treasurer Scott Morrison has given the Productivity Commission more time to complete its review of how the goods and services tax is distributed among the states. The PC had been due to complete its inquiry by 31 January, but has now been given until 15 May. The delay is expected to particularly upset Western Australia, which has long contended that it loses out under the current GST distribution model. Morrison says the PC’s interim report into the GST has clearly shown the current system is "broken" and needs to be fixed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

IPA advocates income tax power be given to states

Original article by Brad Thompson
The Australian Financial Review – Page: 12 : 12-Dec-17

The distribution of goods and services tax revenue between the states and territories continues to attract scrutiny. The Institute of Public Affairs has proposed the adoption of a system of "competitive federalism", whereby the states would be responsible for setting their own GST rate and retaining the revenue. IPA executive director John Roskam suggests that the states and territories could also be allowed to impose their own income taxes, but notes that they baulked at this when the idea was put forward by Prime Minister Malcolm Turnbull in 2016.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION

Developers told GST changes out of left field despite talks

Original article by Duncan Hughes
The Australian Financial Review – Page: 10 : 4-Dec-17

Changes to the goods and services tax treatment of property transactions are due to take effect on 1 July 2018, although they must first be passed by parliament. They are aimed at preventing a practice known as "phoenixing", whereby developers close their business before they have settled their GST obligations, and start up another entity under a different name. The changes are tipped to boost GST collection by $A660 million over four years, but developers are concerned that they will face more red tape and greater compliance costs.

CORPORATES
AUSTRALIAN TAXATION OFFICE, FEHILY ADVISORY

State GST backlash a headache for Turnbull

Original article by Andrew Burrell
The Australian – Page: 4 : 10-Oct-17

Western Australia could receive up to $A3.63 billion more in 2017-18 from goods and services tax payments if the Federal Government adopts changes recommended by the Productivity Commission. However, the other states would get less money if changes to the way GST revenue is distributed are adopted, with Queensland set to lose up to $A1.6 billion. Politicians from the states that would be negatively impacted have reacted angrily to the Commission’s recommendations.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, TASMANIA. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE TREASURY, NEW SOUTH WALES. THE TREASURY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

States to whack back over GST gas threat

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Oct-17

The issue of anti-terrorism measures will be the focus of the Council of Australian Governments meeting on 5 October. However, New South Wales Premier Gladys Berejiklian intends to raise a number of issues, including the Federal Government’s proposal to reduce the share of goods and service tax revenue paid to states that maintain restrictions on gas exploration and production. Meanwhile, Victorian Premier Daniel Andrew continues to advocate the introduction of a domestic gas reserve, arguing that only gas that is surplus to households’ and businesses’ requirements should be exported.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Govt backs GST penalty for gas ban states

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 4-Oct-17

The Productivity Commission’s review of the system for distributing goods and services tax revenue is expected to recommend penalising states that fail to develop their gas reserves. The Commonwealth Grants Commission recently made a similar recommendation. Energy Minister Josh Frydenberg says it does not seem to be in Australia’s long-term interests for states that fail to develop gas reserves to be financially rewarded while states such as Western Australia are penalised.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, SHELL COMPANY OF AUSTRALIA LIMITED