INCOME TAX – AUSTRALIA

Lowest paid lose out to tax creep

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 1 & 6 : 16-May-18

The Australian Industry Group argues that many low-income workers would not benefit from the ACTU’s proposed 7.2 per cent increase in the minimum wage. Due to "bracket creep", a 2.1 per cent increase in the minimum wage would result in such workers being taxed at 32.5 per cent rather than 19 per cent. AiGroup says the Fair Work Commission should take into account the fact that employers would face increased costs under the ACTU’s proposal while there would be little gain for many workers. The AiGroup has called for a 1.8 per cent increase in the minimum wage.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, ACTU, AUSTRALIA. FAIR WORK COMMISSION, GRATTAN INSTITUTE

Shorten ups ante in tax cuts battle

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Original article by Simon Benson, Rachel Baxendale
The Australian – Page: 1 & 6 : 11-May-18

Opposition Leader Bill Shorten has used his Budget reply speech to outline Labor’s proposed income tax reforms, which includes an annual tax cut of up to $A928 for people on low and middle incomes. Labor will support the first phase of the Federal Government’s tax cuts package, but tax brackets will remain unchanged beyond this. Labor has also committed to reinstating the two per cent deficit levy, which would lift the tax rate for people on the highest incomes to 49 per cent. Shorten also said Labor will reverse company tax cuts that have already been legislated if it wins the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS

One Nation holds key to tax-cut deal

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 10-May-18

The Federal Government has ruled out legislating only the first stage of the tax cuts package outlined in the May 2018 Budget. Labor and the Greens have signalled that they will only support the first part of the package, which will provide tax relief in three stages over seven years. Independent Senator Tim Storer also opposes all but the first stage of the package, arguing that it does not constitute the sweeping tax reforms that he is seeking. One Nation may support the tax package in the senate, but it says this would be conditional on a reduction in the annual migrant intake.

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

Labor sticks to high tax strategy

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Original article by Jacob Greber, Tom McIlroy, David Marin-Guzman
The Australian Financial Review – Page: 1 & 6 : 27-Apr-18

Labor intends to retain its policy of increasing the highest marginal tax rate by two per cent to 49 per cent, which it announced in 2017 after the Federal Government opted not to extend the temporary deficit levy. Shadow treasurer Chris Bowen says the Opposition is still of the view that it is inappropriate to limit tax relief to people on high incomes. Treasurer Scott Morrison says increasing the tax burden on high income-earners and business owners could impact on economic growth and the labour market.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Greens’ income plan to cost extra $254bn a year

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Original article by Adam Creighton
The Australian – Page: 1 & 8 : 5-Apr-18

Economists have criticised a proposal by Australian Greens leader Richard Di ­Natale to introduce a universal basic income. This would replace all existing welfare payments, but some estimates suggest that the policy would increase federal government spending by 55 per cent a year, or $A254bn. Modelling by social researcher Ben Phillips also suggests that funding a UBI would require all marginal tax rates to be increased by 33 per cent. This in turn would be likely to significantly reduce the incentive to work for many people.

CORPORATES
AUSTRALIAN GREENS, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN NATIONAL UNIVERSITY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

PM’s tax cut drive for companies, workers

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 1-Feb-18

Prime Minister Malcolm Turnbull will use a speech on 1 February to push for broad-based tax reforms that provide tax cuts for individuals and companies. He will state that the Coalition will aim to deliver tax relief to middle-income earners while retaining its goal of returning the Budget to surplus in 2020-21. Turnbull has reiterated that company tax cuts will be at the top of the Coalition’s agenda when Parliament resumes, stressing that the issue has become more urgent in the wake of tax reforms in the US.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN ELECTORAL COMMISSION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

IPA advocates income tax power be given to states

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Original article by Brad Thompson
The Australian Financial Review – Page: 12 : 12-Dec-17

The distribution of goods and services tax revenue between the states and territories continues to attract scrutiny. The Institute of Public Affairs has proposed the adoption of a system of "competitive federalism", whereby the states would be responsible for setting their own GST rate and retaining the revenue. IPA executive director John Roskam suggests that the states and territories could also be allowed to impose their own income taxes, but notes that they baulked at this when the idea was put forward by Prime Minister Malcolm Turnbull in 2016.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION

I’ve revived economy: Turnbull

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 4 : 12-Dec-17

Prime Minister Malcolm Turnbull say he hopes to have all of the states and territories signed up to the national energy guarantee by the middle of 2018. Turnbull also says that 2018 will see his government focus on the economy, including trying to get parliament to approve the rest of its corporate tax reduction program, as well as looking at the possibility of income tax cuts. He expects that there will be more to come concerning the scandal involving Labor’s Sam Dastyari.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA

Malcolm Turnbull flags tax cuts for low, middle-income earners

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Original article by Phillip Coorey
The Australian Financial Review – Page: Online : 21-Nov-17

Prime Minister Malcolm Turnbull canvassed the prospect of tax cuts for those on low and middle incomes during a speech to the Business Council of Australia on 20 November. However, he said any cuts did not mean the government was abandoning its commitment to return the budget to surplus, nor would they come at the expense of the remaining reductions to company tax that the government is still trying to get approved.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, DELOITTE ACCESS ECONOMICS PTY LTD

ALP left seeks to lift taxes, boost the ‘right to strike’

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Original article by Troy Bramston
The Australian – Page: 1 & 4 : 20-Jul-17

Industrial relations and taxation will be on the agenda of the Australian Labor Party’s national conference in late July. The left faction of New South Wales Labor will push for the party to endorse a range of workplace reforms, including the right to strike, secondary boycotts and pattern bargaining. Other policies to be advocated by the left faction include the introduction of a universal basic wage­, an increased tax rate for high income earners and a national­ inheritance tax.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN RAIL, TRAM AND BUS INDUSTRY UNION