INCOME TAX – AUSTRALIA

Million face tax sting under Shorten

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Original article by Adam Creighton, Rosie Lewis
The Australian – Page: 1 & 2 : 8-Jan-19

The Treasury estimates that about 580,000 Australians will pay the highest marginal income tax rate in 2018-19. However, modelling by the Treasury suggests that this could rise to nearly 1.1 million by 2025 if Labor wins the federal election and proceeds with plans to scrap the Coalition’s proposed increase in the threshold for the top tax rate from $180,000 to $200,000 in 2024-25. The modelling also shows that the number of people in the highest tax bracket would rise to 820,000 by 2024-25 under a Coalition government.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Greens in push to slug rich to boost the dole

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Original article by Adam Creighton
The Australian – Page: 2 : 30-Oct-18

Greens leader Richard Di Natale will announce plans to impose a minimum tax rate of 35 per cent on earnings in excess of $300,000 a year. The proposal, which has been costed by the Parliamentary Budget Office, would raise around $10.5 billion a year, with the funds raised to be used to increase unemployment benefits by $75 per week. The Greens are also seeking to revive Labor’s failed super-profits tax on mining companies.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY

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