GOODS AND SERVICES TAX (GST) – AUSTRALIA

Land tax joins GST on agenda

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 19-Oct-15

Australia’s federal and state governments will consider making changes to a range of state-based taxes as part of any tax reform process. Much of the debate on tax reform has centred on increasing the GST to 15 per cent, but other options that will be examined include changes to the land tax, payroll tax and stamp duty regimes. Economic modelling will be undertaken to examine how such reforms would affect government revenue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA

Extending GST to education is fair, says PwC

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 9-Oct-15

Economic modelling by PricewaterhouseCoopers shows that the Australian Government could raise an additional $A3bn a year by 2019-20 by broadening the goods and services tax to include education. The firm’s modelling also shows that the annual education expenses of people on low salaries would rise by $A19 a year, while those with high incomes would pay an additional $A221 a year.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, THE TAX INSTITUTE

GST less regressive than critics say

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 8-Oct-15

A Productivity Commission report concludes that households on low incomes pay about seven per cent of their earnings in the form of GST. This compares with around five per cent of the earnings of people on incomes exceeding $A150,000. The study refutes claims that increasing the GST would place the greatest burden on low-income households. The Productivity Commission stresses that further research on the issue is needed.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Morrison: GST hike could ease worker tax burden

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 30-Sep-15

Treasurer Scott Morrison has indicated that the Australian Government will ensure that there is no overall increase in the tax burden. He has told Sky News that income tax cuts would be implemented to offset any increase in other taxes, such as the GST. The corporate tax rate and superannuation tax breaks are also likely to be on the agenda when Prime Minister Malcolm Turnbull and key government ministers meet with business, union and community organisation leaders on 1 October 2015.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, SKY NEWS, BUSINESS COUNCIL OF AUSTRALIA, ACTU, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, COUNCIL ON THE AGEING, THE AUSTRALIAN INDUSTRY GROUP, KPMG AUSTRALIA PTY LTD, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN LABOR PARTY

Higher GST inevitable, says Brumby

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Original article by Jacob Greber, Ben Potter
The Australian Financial Review – Page: 1 & 8 : 24-Sep-15

Former Victorian premier John Brumby has told the AFR Tax Reform Summit that goods and services tax reform will occur eventually. He has proposed lifting the GST to 15 per cent and broadening its scope. Brumby estimates that this would increase tax revenue by $A40bn, which could be used to finance income tax cuts, a reduction in the corporate tax rate and compensation for people on low incomes. However, he says any push to apply the GST to fresh food is likely to be rejected by the Senate.

CORPORATES
AUSTRALIAN LABOR PARTY, ACTU, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, RIO TINTO LIMITED – ASX RIO, BUSINESS COUNCIL OF AUSTRALIA, GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN CAPITAL TERRITORY. DEPT OF THE CHIEF MINISTER

Company tax cut – at a price

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Original article by Ben Potter
The Australian Financial Review – Page: S1 & S2 : 23-Sep-15

Shadow treasurer Chris Bowen says the Federal Opposition is open to reducing the corporate tax rate to 25 per cent. However, he has told the AFR Tax Reform Summit that this should not be funded via an increase in the GST. ACTU president Ged Kearney told the summit that any reduction in the corporate tax rate should not result in lower tax revenue, but stressed that this does not necessarily mean that the GST should be increased. Economist Saul Eslake proposed cutting some income tax breaks to finance a reduction in the corporate tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, ACTU, FAIRFAX MEDIA LIMITED – ASX FXJ, KPMG AUSTRALIA PTY LTD, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Tax options put back on table

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 22-Sep-15

Prime Minister Malcolm Turnbull has given indications that the Australian Government is open to a wide range of tax reforms. This is likely to include reforms that had been ruled out by former PM Tony Abbott. Meanwhile, South Australian Labor Premier Jay Weatherill wants the Government to review superannuation tax concessions. He also says the federal Australian Labor Party should reconsider its opposition to an increase in the goods and services tax.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

GST hike ‘not feasible’ under Deloitte model

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 21-Sep-15

PricewaterhouseCoopers estimates that increasing the GST and broadening its scope would raise $A113.5bn a year by 2019-20. Compensating families for the increase in the GST increase would cost about $A76bn. PwC tax partner Paul Abbey has questioned similar modelling by Deloitte, arguing that the firm underestimated the amount of compensation that would have to be given to taxpayers.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY

‘Fair’ GST rise to boost growth

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Original article by Joanna Mather, Jacob Greber
The Australian Financial Review – Page: 1& 8 : 14-Sep-15

A new report from Deloitte outlines several options for tax reform in Australia, estimating that overhauling the tax regime could boost national income by two per cent. The firm has proposed lifting the GST from 10 per cent to 15 per cent, but not increasing the scope of the tax to include items that are currently exempt. It is estimated that this would lift revenue by $A152bn over four years. Deloitte has also canvassed the option of raising the GST to 12.5 per cent and extending it to include fresh food. This option is forecast to raise $A112bn.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, KPMG AUSTRALIA PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

We can agree, say top leaders

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 : 27-Aug-15

The 30 per cent company tax rate made Australia uncompetitive, Rio Tinto MD Phil Edmands told the National Reform Summit in Sydney. Reserve Bank governor Glenn Stevens said changes to industrial relations also had to be looked at to help boost economic growth and employment. Professor Ross Garnaut suggested an economy-wide carbon price to pay down debt.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, KPMG, RESERVE BANK OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, ACTU, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, RIO TINTO LIMITED – ASX RIO, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, GRATTAN INSTITUTE