GOODS AND SERVICES TAX (GST) – AUSTRALIA

Number might be up for low-cost online imports

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Original article by Fleur Anderson
The Australian Financial Review – Page: 5 : 24-Jul-15

GST revenue could rise by about $A1.7bn annually within five years after the Council of Australian Governments agreed to reduce the tax-exempt threshold for goods purchased from offshore websites from $A1,000 to just $A20. Australian Chamber of Commerce & Industry CEO Kate Carnell says the move will reduce the unfair advantage that online retailers based overseas enjoy at the expense of local retailers.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, RETAIL COUNCIL LIMITED, AUSTRALIA. PRODUCTIVITY COMMISSION

Fight builds over $3b GST compo

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 22-Jul-15

The New South Wales Government has proposed lifting the GST rate to 15 per cent, with the extra revenue to be used to finance public health services. Its modelling suggests that annual GST revenue would increase by $A36bn by 2020 with the higher tax rate. Meanwhile, the cost of public health funding is expected to top $A20bn by 2020. When the need to compensate households for the increased GST is taken into account, it is estimated that a further $A2bn to $A3bn in health funding would be needed in addition to the extra GST revenue.

CORPORATES
NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. TREASURY, LIBERAL PARTY OF SOUTH AUSTRALIA, AUSTRALIAN LABOR PARTY

Labor splits over GST increase

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 21-Jul-15

It is estimated that lifting the GST rate from 10 per cent to 15 per cent would increase annual revenue by about $A30bn. South Australian Premier Jay Weatherill and Australian Capital Territory Chief Minister Andrew Barr have indicated that they would consider the reform, with the latter saying his support would be conditional on the payment of sufficient compensation. Victoria and Queensland are the only Australian Labor Party-led state governments that remain firmly opposed to increasing the GST.

CORPORATES
SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN CAPITAL TERRITORY. DEPT OF THE CHIEF MINISTER, AUSTRALIAN LABOR PARTY, VICTORIA. DEPT OF PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, TASMANIA. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, LIBERAL PARTY OF NEW SOUTH WALES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIAN GREENS

Hockey bid for election tax cuts

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 20-Jul-15

Treasurer Joe Hockey has signalled that tax reform will be on the agenda for the federal election in 2016. He says the current income tax regime discourages people from earning additional money, with so-called bracket creep likely to push people on the average income onto the second-highest tax rate. Hockey has also urged state governments to support GST reform, although former treasurer Peter Costello says the government is unlikely to gain the support of all states.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Hockey tells states to lift GST income

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

The upcoming state and federal leaders’ summit will present an opportunity to pursue intergovernmental reform, according to Treasurer Joe Hockey. He will use a speech on 15 July 2015 to argue for changes to the GST and the transfer of full responsibility for schools and hospitals to the states. Hockey will also call for measures such as the abolition of inefficient state taxes and a reduction in the corporate tax and capital gains tax rates.

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

Support for 12.5pc GST if stamp duty abolished

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 13-Jul-15

An online survey that was undertaken on behalf of the Property Council of Australia has found that 64 per cent of respondents would be in favour of abolishing stamp duty in return for an increase in the GST to 12.5 per cent. Meanwhile, 68 per cent expressed a preference for an income tax cut to offset the impact of a higher GST. Some 64 per cent of respondents identified stamp duty as the nation’s most unfair tax, ahead of land tax and personal income tax.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, BAPTIST CARE AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Federal tax reform labelled a ploy to force GST increase

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Original article by Phillip Coorey, Geoff Winestock
The Australian Financial Review – Page: 6 : 25-Jun-15

The Australian Chamber of Commerce & Industry supports a proposal to permit the states to introduce income taxes and set their own tax rates. It is one of the proposed measures outlined in a green paper on federation reform. The paper also proposes shifting responsibility for funding of schools and hospitals to the states. Victorian Premier Tim Pallas argues that this measure is aimed at persuading the states to support an increase in the scope or rate of the GST.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, VICTORIA. DEPT OF TREASURY AND FINANCE, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF NEW SOUTH WALES

CGT discount too generous: Tony Shepherd

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 23-Jun-15

Australian business leader Tony Shepherd says the capital gains tax (CGT) rate should be increased to the same level as the income tax rate. He has also advocated changes to the CGT discount of 50 per cent and increasing both the rate and scope of the goods and services tax.

CORPORATES
COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

BP joins calls to raise GST in line with OECD

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 17-Jun-15

BP Australia COO Andy Holmes notes that the average GST rate among OECD countries is 18 per cent. He argues that Australia should lift its GST rate from 10 per cent to 15 per cent, and broaden the scope of the consumption tax. BP’s submission on the Federal Government’s tax white paper also calls for changes to the stamp duty regime and the petroleum resource rent tax. Rio Tinto also favours stamp duty reform, arguing that it deters investment in Australia.

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

Directors blast Coalition over tax

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Original article by Agnes King
The Australian Financial Review – Page: 5 : 21-May-15

Corporate directors have criticised the Australian Government for failing to include GST and superannuation in its tax reform agenda. Perpetual director Sylvia Falzon says tax reform is "pointless" if these issues are not part of the debate, while Wesfarmers director Jennifer Westacott argues that tax reform will encourage greater investment and workforce participation.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WESFARMERS LIMITED – ASX WES, BUSINESS COUNCIL OF AUSTRALIA, SAI GLOBAL LIMITED – ASX SAI, REGIS HEALTHCARE LIMITED – ASX REG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BRAMBLES LIMITED – ASX BXB, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, STOCKLAND – ASX SGP, BUSINESS COALITION FOR TAX REFORM