Labor threat to derail GST distribution law

Original article by Andrew Burrell, Matthew Denholm
The Australian – Page: 6 : 2-Oct-18

Prime Minister Scott Morrison has announced that he will introduce legislation aimed at changing the way that goods and services tax revenue is distributed. He promised that no state would be worse off under his GST plan, but shadow treasurer Chris Bowen said he is concerned that Morrison’s proposed legislation does not state explicitly that this would be the case. Similarly, the Tasmanian Government wants an "enforceable guarantee" from the federal government that it will not be worse off under the proposed changes.

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

Treasurer’s fix ends GST battle

Original article by Ben Packham
The Australian – Page: 1 & 2 : 6-Jul-18

Shadow treasurer Chris Bowen has criticised the Federal Government’s proposal to provide the states and territories with top-up goods and services tax payments. Treasurer Scott Morrison said the GST payments will be funded via consolidated revenue, but Bowen has warned that the government could potentially reduce funding for hospitals and schools to finance the deal. The states are expected to endorse the changes, which aim to ensure that each state’s share of GST revenue does not fall below $0.75 in the dollar.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. THE TREASURY

No state worse off in GST shake-up: PM

Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 3-Jul-18

The Federal Government will shortly release its response to the Productivity Commission’s report on the distribution of goods and services tax revenue. Prime Minister Malcolm Turnbull has stressed that no state will be disadvantaged by any change in the methodology for allocating GST revenue. The government is expected to compensate states for any loss of revenue during the transition to a new GST distribution formula; economist Saul Eslake says clarification is needed regarding the compensation plan.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY

Plan for reboot of GST carve-up

Original article by Simon Benson
The Australian – Page: 1 & 6 : 9-Oct-17

The Productivity Commission’s interim report on its review of the system for distributing goods and services tax revenue will be released on 9 October. The report is said to be broadly supportive of the "horizontal fiscal equalisation" formula for allocating GST revenue but will advocate some changes due to concerns about the current system’s impact on productivity. However, any attempt to change the GST formula is likely to meet with strong opposition from some states. The Commission’s final report will be released in 2018.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, TASMANIA. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

Morrison’s GST threat to boost gas

Original article by David Uren, Andrew Burrell, Matt Condon, Emily Ritchie
The Australian – Page: 1 & 4 : 29-Jun-17

Treasurer Scott Morrison says the Productivity Commission’s review of the formula for distributing goods and services tax revenue will take into account state-based bans and restrictions on gas exploration. He says it is not fair that states which are open to gas exploration and production receive a lower share of GST revenue than those which ban exploration. The Federal Government has argued that restrictions on gas exploration in some states and territories is contributing to the shortage of gas for domestic consumption.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, VICTORIA. DEPT OF TREASURY AND FINANCE

PM’s GST floor to stem mine tax leakage: Grylls

Original article by Andrew Burrell
The Australian – Page: 6 : 14-Dec-16

The Minerals Council of Australia has released a report which suggests that Western Australia would lose $A2.02bn worth of GST revenue if it increased the iron ore levy. However, WA National Party leader Brendon Grylls argues that this analysis excluded the impact of the Federal Government’s proposed "floor" for the distribution of GST revenue. The state would be likely to retain most of the proceeds of the levy, as its share of GST revenue has fallen well below the proposed floor of about $A0.70 in the dollar.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Cabinet looks at workplace changes in growth package

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 27-Jan-16

Strategies for lifting economic growth and employment will be on the agenda at the first meeting of federal Cabinet ministers for 2016. Industrial relations reforms may be part of the Federal Government’s election package, which could include a Productivity Commission recommendation to introduce enterprise contracts for companies that have at least 20 employees. The Government is also believed to favour increasing the GST and widening its scope to include fresh food. This would be accompanied by a reduction in the personal income and corporate tax rates.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION

Fresh food, banking likely GST targets

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 : 3-Nov-15

Treasurer Scott Morrison has signalled that a rise in the GST rate would not apply to health and education. He said on 2 November 2015 that there were "very practical reasons" for excluding those two sectors, including the involvement of the state through funding and regulation. Meanwhile, Prime Minister Malcolm Turnbull indicated that he would like the next federal election to be held in September or October 2016.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Talk of GST increase spooks industry leaders

Original article by Robert Harley
The Australian Financial Review – Page: 36 : 10-Sep-15

An increase in the rate of Australia’s goods and services tax (GST) would have a negative impact on the property sector. Matthew Cridland, GST partner at law firm DLA Piper, warns in a briefing document that less supply could be expected from housing developers and retirement village operators if the GST rises to 15 per cent. Shopping centres would also be negatively influenced.

CORPORATES
DLA PIPER, PROPERTY COUNCIL OF AUSTRALIA LIMITED, ACIL ALLEN CONSULTING PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

GST to pay for income tax cuts

Original article by Phillip Coorey, Primrose Riordan
The Australian Financial Review – Page: 1 : 31-Aug-15

Federal Finance Minister Mathias Cormann has signalled that the goods and services tax (GST) might be raised to pay for income tax cuts. He said on 30 August 2015 that a tax reform package would be part of an election program to be developed before the next election. New South Wales Premier Mike Baird welcomed Cormann’s comments and agreed about the need to discuss the GST.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET