INCOME TAX – AUSTRALIA

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

Burston to vote for full income tax cut package

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 7-Jun-18

The Federal Government still requires the support of eight out of the 10 crossbenchers to pass its income tax cuts package in the Senate. One Nation senator Brian Burston has indicated that he intends to support the entire tax package, despite party leader Pauline Hanson having committed to supporting only the first two stages of the tax package. Labor will also support the first two stages of the package, but Treasurer Scott Morrison has ruled out legislating the third stage separately.

CORPORATES
ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Tax Office reveals its top targets for audits

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Original article by Duncan Hughes
The Australian Financial Review – Page: 7 : 4-Jun-18

Home offices, cryptocurrencies and property investments will be among the Australian Taxation Office’s main areas of scrutiny when it comes to assessing 2017-18 tax returns. ATO assistant commissioner Kath Anderson notes that the amount of data that it collects each year continues to grow, making it easier to compare taxpayers to others with similar incomes and occupations to see whether appropriate deductions are being claimed.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AIRBNB AUSTRALIA PTY LTD

Labor’s $2000 tax sting for average workers

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Original article by Simon Benson, David Uren
The Australian – Page: 1 & 4 : 30-May-18

Prime Minister Malcolm Turnbull says 10 million Australians will receive an income tax cut in the first year of the Federal Government’s three-stage tax package. However, Shadow treasurer Chris Bowen says analysis by the Treasury shows that the top 20 per cent of income earners will benefit most from the tax package. Meanwhile, analysis of data from the Australian Taxation Office suggests that Labor’s alternative tax plan will increase the average worker’s annual tax bill by between $A500 and $A2,000 by 2024-25.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY

PM wants tax stoush before Super Saturday

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Original article by Joe Kelly
The Australian – Page: 4 : 29-May-18

The Federal Government aims to have its proposed corporate and personal income tax cuts passed by the Senate prior to the five by-elections on 28 July. Finance Minister Mathias Cormann has advised that the tax packages will be put to the upper house before the end of June, despite the fact that the government currently has insufficient support for either of them. Opposition Leader Bill Shorten has ruled out supporting the company tax cuts package, while One Nation leader Pauline Hanson argues that the full reduction in the corporate tax rate should be implemented immediately.

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

Labor leader vows to end great divide, revive wages

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Original article by Samantha Hutchinson, John Ferguson, Ben Potter
The Australian – Page: 4 : 28-May-18

Opposition Leader Bill Shorten told Victorian Labor’s state conference on 27 May that inequality is increasing in Australia. With federal Labor due to face five by-elections on 28 July, Shorten flagged plans to reduce national debt, cut income taxes, and boost education and health funding if Labor wins the next election. The previous day had seen Victorian Premier Daniel Andrews promised to impose jail terms on employers who underpay staff or whose employees are killed on the job.

CORPORATES
AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Senate showdown looms on tax cuts

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Original article by Joe Kelly
The Australian – Page: 5 : 24-May-18

Treasurer Scott Morrison has revealed that the Federal Government’s three-stage personal income tax package will cost $A143.95bn in total, with the first two stages to cost $A102.35bn. The tax bill was passed by the House of Representatives on 23 May, although it is likely to face resistance in the Senate. Labor and crossbench senators have urged the Government to legislate the first stage of the tax cuts separately. Meanwhile, Finance Minister Mathias Cormann says the company tax cuts package will be part of the Coalition’s policy agenda for the next election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, NATIONAL PARTY OF AUSTRALIA, ONE NATION PARTY

Labor will stick to top tax rate of 49pc

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 17-May-18

Shadow treasurer Chris Bowen has used a National Press Club speech to reiterate that a Labor government would reinstate the temporary budget repair levy. Bowen argued that the two per cent levy on incomes of more than $A180,000 is justified as the Budget is still in deficit. He added that Labor would retain the levy until the Budget is sustainably in surplus, and nominated one per cent of GDP as a likely figure. Bowen also gave indications that Labor will support the second stage of the May 2018 Budget’s income tax package.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA)

Minimum wage a tax on employers, says economist

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 4 : 17-May-18

The University of Melbourne’s Professor Roger Wilkins says it is "absurd" that an increase in the minimum wage could see people on low incomes move into a higher tax bracket. It is estimated that the marginal tax rate of about 193,000 workers will rise from 19 per cent to 32.5 per cent if the minimum wage is increased by 2.1 per cent. The minimum wage was increased by 3.3 per cent in 2017, and the Australian Industry Group has advocated a 1.8 per cent rise in 2018. The Fair Work Commission is expected to announce its decision shortly.

CORPORATES
UNIVERSITY OF MELBOURNE, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA)