GOODS AND SERVICES TAX (GST) – AUSTRALIA

Government losing appetite for GST hike

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Original article by Phillip Coorey, Primrose Riordan
The Australian Financial Review – Page: 3 : 5-Feb-16

Prime Minister Malcolm Turnbull says a push to increase the GST will only proceed if it can be demonstrated to have positive economic effects, such as creating jobs and lifting productivity. Meanwhile, a growing number of Federal Government MPs and senators have reservations about increasing the GST. Liberal Senator Cory Bernardi has vowed to vote against the Government on any bill to increase the tax, while MP Russell Broadbent says the Government has not presented a compelling case for a tax increase.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

GST pitch just in time for election

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 2-Feb-16

The Australian Government is believed to favour lifting the GST to 15 per cent without broadening the scope of the tax. However, it is said to be looking at postponing the release of its tax reform package until shortly before the 2016 election rather than timing it to coincide with the Budget in May. The Howard Government adopted a similar strategy in 1999, when it outlined plans to introduce the GST just before the election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, NEWSPOLL, IPSOS AUSTRALIA PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

$100b GST hike to pay for tax cuts

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 4 : 1-Feb-16

The New South Wales Government will make a final push to achieve consensus among the states and territories on changes to the GST. Premier Mike Baird has previously advocated lifting the GST to 15 per cent and spending all proceeds on hospitals, education and compensation for the tax increase. However, he now proposes using the proceeds of the GST increase in the first year to finance corporate and personal income tax cuts, as well as compensation. Meanwhile, $A7bn of GST revenue would be allocated to hospitals and the education system in the three years to 2019-20.

CORPORATES
NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Fresh food may be spared GST by Coalition

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 28-Jan-16

The issue of tax reform and the GST will be on the agenda of federal Cabinet ministers on 28 January 2018. Increasing the GST to 15 per cent is believed to be the Government’s preferred reform option, although the National Party will oppose any push to extend the GST to fresh food due to concerns that it would particularly affect people on low incomes. The Government has already ruled out broadening the scope of the GST to include healthcare and education.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Morrison vows strong changes to tax system

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Original article by Primrose Riordan
The Australian Financial Review – Page: 4 : 22-Jan-16

The GST and superannuation tax concessions may be the Australian Government’s tax reform agenda, while Treasurer Scott Morrison has indicated that the corporate tax rate may also be under scrutiny. Meanwhile, Morrison says recent financial market volatility is likely to influence the timing of the 2016 federal election, and will most likely rule out an early poll. Opposition Leader Bill Shorten has warned that increasing the GST in the wake of the sharemarket rout would hurt consumer confidence.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Income tax for states in GST plan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 11-Dec-15

Australia’s federal, state and territory treasurers will continue to conduct negotiations over the division of tax revenue from the GST. They agreed at a meeting on 10 December 2015 to consider a proposal by South Australian Premier Jay Weatherill. He suggested in November that extra revenue from a rise in the GST could be used to fund tax cuts. The states would also receive 17.5 per cent of income tax revenue, with no restrictions on how they would spend it.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

GST rise in trouble as rebellion in Senate grows

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Original article by Primrose Riordan
The Australian Financial Review – Page: 4 : 12-Nov-15

The majority of cross-bench senators will need to back any push by the Australian Government to increase the GST for it to succeed. However, a number of cross-bench senators have stated their opposition to lifting the GST to 15 per cent, as have several independent MPs in the lower house. The Opposition and the Australian Greens will also vote against any changes to the GST.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAMILY FIRST PARTY AUSTRALIA LIMITED, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Gary Morgan – Tax reform and broadening the GST base will help tackle Australia’s "cash economy"

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 9-Nov-15

The solid increase in the ANZ-Roy Morgan Consumer Confidence rating (now 116.6, up from 105.3 pre-Turnbull) and Roy Morgan Business Confidence (119.3 in October 2015, up from 102.6 in August) since Malcolm Turnbull became Prime Minister in mid-September gives him the political capital to make the tough decisions now to ensure Australia’s future prosperity. The recent discussion about the taxation system – including increasing the GST from 10 per cent to 15 per cent, and possibly broadening the GST base, is needed because too many people and companies do not pay their fair share of tax. Broadening the GST base in combination with tax reform will help tackle Australia’s booming "cash economy" and allow the Federal Government to implement extensive industrial relations reform. Australians who want to prosper will not complain, as more jobs will be available for everyone.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Bank GST for company tax cut plan

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 9-Nov-15

The Parliamentary Budget Office estimates that the goods and services tax will generate revenue of $A18bn over the next four years. However, increasing the tax to 15 per cent and broadening its scope to include financial services could potentially lift revenue to around $A27bn over four years. This is one of the options that will be considered by the Federal Government, and has been advocated by South Australian Premier Jay Weatherill.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, INTERNATIONAL MONETARY FUND

Poorer families may earn double before tax in GST plan

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 20-Oct-15

CPA Australia supports the idea of raising the tax-free threshold to match the minimum wage at $A33,327 a year, to compensate low-income earners for increasing the goods and services tax. CPA CEO Alex Malley said such a move would make work more attractive than welfare payments. Australian National University research fellow Rob Bray has doubts about the effectiveness of the higher tax-free threshold.

CORPORATES
CPA AUSTRALIA, ACTU, LIBERAL PARTY OF AUSTRALIA, KPMG AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY