GOODS AND SERVICES TAX (GST) – AUSTRALIA

States to whack back over GST gas threat

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

Coalition ready to target states over coal seam gas bans

roymorgansocial Leave a comment

Original article by Patrick Durkin, Angela Macdonald-Smith
The Australian Financial Review – Page: 5 : 2-Oct-17

Energy Minister Josh Frydenberg supports a suggestion by the Commonwealth Grants Commission concerning the goods and services tax and gas moratoriums or bans. The Commission has suggested states that have such bans could have their GST allocation reduced. Victoria has a ban on all on-shore gas exploration and development, but Treasurer Tim Pallas says it will not be "bullied" into lifting its ban. David Jochinke from the Victorian Farmers’ Federation said it would not be opposed to having the moratorium on conventional gas lifted, provided all possible risks are addressed.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, VICTORIA. DEPT OF TREASURY AND FINANCE, VICTORIAN FARMERS FEDERATION, DOW CHEMICAL AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CHEMISTRY AUSTRALIA

Rio Tinto pushes for GST shake-up

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 19 : 7-Sep-17

Rio Tinto CEO Jean-Sebastien Jacques says the distribution of goods and services tax revenue is "unfair and counter-productive", and action is needed to ensure that Western Australia receives an equitable share of the revenue. Jacques has also used a Mining Week event to call for changes to the nation’s corporate tax regime, arguing that Australia now boasts the sixth-highest company tax rate among OECD nations, while he has called for a national approach to energy policy.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

GST sparks WA secession push

roymorgansocial Leave a comment

Original article by Andrew Burrell
The Australian – Page: 2 : 31-Aug-17

The Liberal Party of Western Australia’s 2017 conference will be presented with a motion for the state to secede from Australia and become an independent state within the commonwealth. The motion has been prompted by growing unrest in WA over the distribution of goods and services tax revenue. Under the current funding arrangement, WA receives just $A0.34 out of every dollar that the GST raises in the state. The Federal Government has yet to implement a "floor" for the distribution of GST revenue, which was announced at the 2016 state conference.

CORPORATES
LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL STUDENTS ASSOCIATION OF WESTERN AUSTRALIA

Netflix risks backlash by passing on GST

roymorgansocial Leave a comment

Original article by Darren Davidson
The Australian – Page: 19 : 12-Jul-17

US-based streaming video giant Netflix will increase its subscription fees for new and existing Australian customers by between $A1 and $A3 per month. Netflix has attributed the price increase to the Federal Government’s decision to apply the goods and services tax to offshore providers of digital services. Rival subscription video-on-demand company Stan also recently increased its prices.

CORPORATES
NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS

Online GST reprieve till next year

roymorgansocial Leave a comment

Original article by Rachel Baxendale
The Australian – Page: 5 : 20-Jun-17

The application of the goods and services tax to imported goods that cost less than $A1,000 has been delayed by 12 months, and will now take effect as from 1 July 2018. The measure has been welcomed by Australian retailers such as Harvey Norman, but slammed by online retail providers such as EBay and Amazon, which have threatened to prevent Australian consumers from using their portals if they were compelled to collect the GST.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, EBAY INCORPORATED, AMAZON.COM INCORPORATED, ETSY INCORPORATED, ALIBABA.COM CORPORATION, DHL CORPORATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. PRODUCTIVITY COMMISSION

McGowan’s pokies plan to increase WA share of GST

roymorgansocial Leave a comment

Original article by Andrew Burrell, Paul Garvey
The Australian – Page: 2 : 8-Jun-17

Western Australian Premier Mark McGowan will use the upcoming Council of Australian Governments meeting to put forward a new proposal for the distribution of goods and services tax revenue. He wants state gambling taxes to be included in GST revenue, which would benefit WA as it does not permit pubs and clubs to operate poker machines. He will also press for 25 per cent of WA’s iron ore royalties to be exempt from being redistributed to other states via the GST system.

CORPORATES
WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

It’s time to raise GST, says Proust

roymorgansocial Leave a comment

Original article by Glenda Korporaal
The Australian – Page: 19 & 22 : 2-Feb-17

Australian Institute of Company Directors president Elizabeth Proust says the Federal Government should pursue comprehensive tax reform. She argues that this should include increasing the goods and services tax from 10 per cent to 15 per cent, and adds that reducing personal income tax rates should also be a higher priority than company tax cuts. The AICD released a position paper in 2016 which noted that the average GST rate among OECD countries is 19.2 per cent.

CORPORATES
AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Tax office in stunning U-turn on gold fraud

roymorgansocial Leave a comment

Original article by Robert Gottliebsen
The Australian – Page: 19 : 12-Jan-17

Under the Howard government’s tax reforms, Australian gold refiners were required to pay GST on gold that is not of investment grade, although investment-grade gold in bars did not attract GST. Refiners warned the Australian Taxation Office that the system was subject to widespread fraud, which is estimated to have cost taxpayers around $A600m. The ATO targeted gold refiners, believing that they were involved in the massive tax fraud, and its actions threatened the nation’s entire refining industry. The ATO subsequently backed down in late 2016 and agreed to measures first proposed by gold refiners some three years earlier. They will now be permitted to buy high-purity gold that is not marked as being of investment grade without attracting GST.

CORPORATES
AUSTRALIAN TAXATION OFFICE, FOCUS MINERALS LIMITED – ASX FML, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. OFFICE OF THE INSPECTOR-GENERAL OF TAXATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY