INCOME TAX – AUSTRALIA

Tax Office hunts for undeclared income

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 19-Sep-18

The Australian Taxation Office will use data-matching technology to recoup up to $1.4bn in unpaid taxes from foreign income and cash payments. As part of the crackdown, the ATO will increase its co-operation with around 100 foreign tax agencies, with data from Austrac showing that the US, the UK, New Zealand and China are among the leading countries from which Australians receive undeclared foreign income. The ATO’s assistant commissioner Kath Anderson says there is also a growing trend for taxpayers to fail to declare income from sources such as cryptocurrency trading and gig economy earnings.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Tax over-claimers gouge $8.7bn

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Original article by Rachel Baxendale
The Australian – Page: 2 : 12-Jul-18

The Australian Taxation Office will seek to recover more than $A1bn worth of tax liabilities over the next four years, according to second commissioner Neil Olesen. Analysis shows that the Federal Government lost $8.7bn in tax revenue in 2014-15 as a result of individuals failing to comply with their tax obligations. In contrast, it is estimated that forgone tax revenue from companies was just $2.5bn.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE TAX INSTITUTE, CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND

PM delivers on historic tax reform

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Original article by Simon Benson
The Australian – Page: 1 & 6 : 22-Jun-18

The first stage of the Federal Government’s personal income tax cuts package will proceed on 1 July after nine Senate crossbenchers voted for the bill, although Opposition Leader Bill Shorten has described the tax cuts as "unfair and unaffordable". Business Council of Australia CEO Jennifer Westacott has welcomed the income tax reform, but stresses the need for a further reduction in the company tax rate. One Nation leader Pauline Hanson has signalled that she may be willing to support the company tax cuts if the government further cracks down on tax avoidance by multinationals.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, ONE NATION PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE

Hanson to seal PM’s tax win

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 21-Jun-18

The Federal Government is set to pass its personal income tax cuts package after it gained the support of One Nation and the two Centre Alliance senators. The upper house approved the bill on 20 June, after endorsing Labor’s amendments to scrap the third stage of the tax cuts. However, the amended bill is set to be rejected by the lower house on 21 June, and the original bill will then be put to the Senate again. One Nation leader Pauline Hanson and Labor have accused each other of deserting so-called "battlers" with their stances on the tax package.

CORPORATES
ONE NATION PARTY, CENTRE ALLIANCE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Labor to ditch $120b of tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 20-Jun-18

Opposition Leader Bill Shorten says Labor will only support the first stage of the Federal Government’s personal income tax package, which is slated to take effect on 1 July. The government has ruled out legislating the first stage separately, and it requires the support of eight crossbenchers to pass its bill in the Senate. At present it has the support of seven crossbenchers, with One Nation still opposing the third stage of the tax cuts. Shorten has indicated that a future Labor government would scrap the second and third stages of the tax package if the bill is passed.

CORPORATES
AUSTRALIAN LABOR PARTY, ONE NATION PARTY, CENTRE ALLIANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS

Game of chicken on tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 : 19-Jun-18

A meeting of Labor MPs on 19 June is expected to endorse the first stage of the Federal Government’s personal income tax cuts package. However, Labor’s continued opposition to the rest of the tax package means the Government will require the support of One Nation and Centre Alliance to pass the full tax cuts in the Senate. Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have again ruled out splitting the tax bill to enable the first stage of the tax cuts to proceed on 1 July.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, ONE NATION PARTY, CENTRE ALLIANCE, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Hanson last barrier to full tax cuts

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Original article by Andrew Tillett
The Australian Financial Review – Page: 1 & 4 : 18-Jun-18

Five of the Senate crossbenchers will support all three stages of the federal government’s income tax cuts package, while the two Centre Alliance senators will back the first two stages and are open to negotiation on the third. The stance of One Nation’s two remaining senators is likely to be crucial, given that the government requires the support of eight crossbenchers. Finance Minister Mathias Cormann says the government will not split the bill.

CORPORATES
CENTRE ALLIANCE, ONE NATION PARTY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN GREENS, AUSTRALIAN GREENS

RBA boss backs income tax cuts

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 14-Jun-18

Reserve Bank governor Philip Lowe says the Federal Government’s personal income tax cuts package will contribute to growth in wages. Lowe describes the proposed tax cuts as an "incremental step" in the broader process of tax reform. He has also called for wages to be progressively increased as the economy strengthens, arguing that wages of growth of around three per cent annually is feasible in the longer-term, compared with growth of around two per cent at present. Labor has only committed to supporting the first stage of the tax cuts package.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Treasury overstated cost of tax cuts

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Original article by Adam Creighton
The Australian – Page: 2 : 8-Jun-18

Australian Taxpayers Alliance director John Humphreys estimates that the Federal Government’s income tax cuts will cost about $A78bn over 10 years, compared with Treasury’s forecast of $A144bn. The government estimates that the third stage of the tax package will cost $41.6bn, but Humphreys’ analysis suggests that it will cost just $A3.5bn. Humphreys and other experts argue that Treasury’s forecasts do not take into account the fact that more people are likely to enter the workforce or increase the number of hours they work as a result of the tax cuts.

CORPORATES
AUSTRALIAN TAXPAYERS’ ALLIANCE PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF NEW SOUTH WALES, AUSTRALIAN LABOR PARTY, UNIVERSITY OF QUEENSLAND, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Labor ridiculed for throwing gender bias into tax battle

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 7-Jun-18

Shadow treasurer Chris Bowen has revealed that the Parliamentary Budget Office has undertaken an analysis of the gender impact of the Federal Government’s income tax cuts package on behalf of the Opposition. Bowen says the modelling shows that men will benefit the most from the third phase of the tax cuts. Treasurer Scott Morrison has responded by arguing that the income tax system is gender-neutral, a view shared by business leader Tony Shepherd. Small Business Ombudsman Kate Carnell says it is inappropriate to address the gender pay gap via the tax system.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, NRMA LIMITED