INCOME TAX – AUSTRALIA

‘Big-bang’ tax reform gone

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Original article by David Crowe
The Australian – Page: 1 & 4 : 12-Feb-16

The Australian Government has abandoned plans for large-scale tax reform underpinned by a rise in the GST, although it still wants to reduce personal income tax rates. However, Treasurer Scott Morrison has conceded that tax cuts will have to be much more modest than originally intended. He also said that any reduction in the company tax rate would have to be implemented over several years. Meanwhile, Treasury estimates that economic growth will slow by 0.35 per cent over four years if income taxes are not reduced.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, KPMG AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF HUMAN SERVICES

Imputation query as company tax cut gives biggest bang

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 10-Feb-16

Prime Minister Malcolm Turnbull has ruled out increasing the GST to finance income tax cuts, after telling Coalition MPs that economic modelling has shown that it would not be economic feasible. The modelling showed that using a higher GST to finance company tax cuts would achieve the greatest economic benefit. Meanwhile, Australian Industry Group CEO officer Innes Willox has proposed reducing the company tax rate from 30 per cent to 20 per cent by scrapping the dividend imputation system.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, MACQUARIE UNIVERSITY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NORTHERN TERRITORY. DEPT OF THE CHIEF MINISTER, COUNCIL FOR THE AUSTRALIAN FEDERATION

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

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

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

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

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

Treasury: Tax stuck in the ’50s

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Original article by Patrick Durkin
The Australian Financial Review – Page: 8 : 4-Dec-14

Federal bureaucrat Dr Martin Parkinson says Australia’s tax system is outdated and is adversely affecting the nation’s international competitiveness. He argues that tax reform is essential as the tax regime has not changed significantly since the 1950s. The outgoing head of the Treasury says that reducing the personal and corporate rate rates in particular is needed. Meanwhile, business leader Tony Shepherd has called for changes to the GST

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. NATIONAL COMMISSION OF AUDIT, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD