Original article by Sid Maher, Patrick Commins
The Australian – Page: 1 & 5 : 11-Jan-21
Treasurer Josh Frydenberg says the federal government delivered some $7bn worth of tax cuts to Australian workers in the second half of 2020. This includes about $1.1bn under the stage-two tax cuts and $5.9bn via the Low and Middle Income Tax Offset. Treasury estimates that the tax cuts will boost GDP by around $3.5bn in 2020-21. The tax relief is likely to have contributed to a surge in retail spending during the half-year, despite the impact of COVID-19 lockdown restrictions. Citigroup expects consumer spending to have risen by seven per cent in November, with data to be released on 11 January.
AUSTRALIA. DEPT OF THE TREASURY, CITIGROUP PTY LTD
Original article by Rosie Lewis, Joe Kelly
The Australian – Page: 1 & 4 : 15-Jul-20
The Australian Chamber of Commerce & Industry has used its pre-budget submission to call for comprehensive tax reform, including bringing forward legislated personal income tax cuts. The ACCI also advocates a gradual reduction in the JobSeeker allowance to pre-coronavirus levels, while it says the domestic economy will be vulnerable to further shocks for several years due to the impact of COVID-19. Meanwhile, a Menzies Research Centre paper argues that all of the national cabinet’s decisions on coronavirus lockdowns measures should be subject to a cost-benefit analysis. The report by economists Henry Ergas and Joe Branigan was written before the new virus outbreaks in Melbourne and Sydney.
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE MENZIES RESEARCH CENTRE LIMITED
Original article by Simon Benson
The Australian – Page: 6 : 11-Feb-20
Data from the Australian Taxation Office shows that taxpayers received an average tax refund of $967 for the 2018-19 financial year. In total, some $6.1bn was returned to working Australians in the form of tax cuts and refunds, largely to those with annual income of $37,000 to $90,000. Treasurer Josh Frydenberg say the income tax cuts are now flowing through to the economy, which is continuing to grow at a time when many other countries are experiencing negative growth.
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY
Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 18-Dec-19
Treasurer Josh Frydenberg has not ruled out bringing forward the next stage of the federal government’s income tax cuts package, which is due to take effect in mid-2022. However, sources have indicated that this is unlikely given the reduction in projected Budget surpluses over the next four years. Meanwhile, Chris Richardson of Deloitte Access Economics argues that bringing forward the second stage of the tax cuts to 2020-21 would require the iron ore price to remain about $US15 per tonne higher throughout that financial year.
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BUSINESS COUNCIL OF AUSTRALIA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE
Original article by John Kehoe
The Australian Financial Review – Page: 5 : 7-Nov-19
The second stage of the federal government’s income tax package is slated to take effect in mid-2022. However, Westpac’s chief economist Bill Evans has urged the government to begin phasing in the tax cuts from July 2020 to boost consumer spending and stimulate the economy. Commonwealth Bank economist Gareth Aird also argues that the government should bring forward some of the legislated tax cuts. Shadow treasurer Jim Chalmers says Labor has been advocating this for months.
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY
Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 6-Nov-19
Prime Minister Scott Morrison recently ruled out any increase in the goods and services tax. However, there is growing support within the Coalition’s ranks for an overhaul of fiscal relations between the federal and state governments. Some Liberal MPs have proposed giving the states more power to raise their own revenue. Former prime minister Malcolm Turnbull proposed such a move in 2016, whereby federal income tax rates would be reduced and the states would impose their own income tax to make up for the revenue shortfall.
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NEW SOUTH WALES. THE TREASURY
Original article by Adam Creighton
The Australian – Page: 6 : 16-Oct-19
The Centre for Independent Studies has released a report which warns that the federal government’s changes to the low- to medium-income tax offset will decrease GDP and the economic efficiency of the tax system. The report’s author, John Humphreys, estimates that the LMITO will reduce revenue by $35bn over the next four years, as it provides a disincentive to work. He adds that the second and third stages of the government’s tax cuts package will reduce revenue by $145bn over 10 years, and argues that the tax cuts can be brought forward without jeopardising Budget surpluses.
THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY
Original article by Adam Creighton
The Australian – Page: 5 : 24-Sep-19
Returning the Budget to surplus has been a priority for the federal government since it won office in 2013, and it is on track for a surplus in 2019-20 after posting a deficit of less than $700m for 2018-19. However, documents released under Freedom of Information laws show that the Treasury is of the view that tax cuts may be the best way to stimulate the economy. The Treasury papers note that the government’s income tax cuts package will boost household disposable income by 0.75 per cent over three years, while delaying or reversing future tax cuts would reduce the efficiency of the economy and the tax system.
AUSTRALIA. DEPT OF THE TREASURY
Original article by Rosie Lewis, Eli Greenblat
The Australian – Page: 2 : 11-Jul-19
More than 970,000 people have lodged their annual tax return with the Australian Taxation Office since 1 July. Retailers are optimistic that the federal government’s tax cuts will have a similar stimulatory effect on the sector as the one-off payment made by Labor in 2009. Russell Zimmerman of the Australian Retailers Association says the tax cuts will allow struggling consumers to buy items such as new electrical appliances and clothing.
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN RETAILERS ASSOCIATION, NATIONAL RETAIL ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, CITIGROUP PTY LTD
Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 8-Jul-19
Stephen Koukoulas of Market Economics and Andrew Charlton from Alphabeta say that further fiscal stimulus is not needed at present to boost the Australian economy. They argue that the federal government’s income tax cuts, the Reserve Bank’s latest official interest rate reduction and an easing of credit restrictions should be sufficient, and in fact may provide a greater economic boost than many observers anticipate. They add that too much fiscal stimulus could put a return to a Budget surplus at risk.
MARKET ECONOMICS PTY LTD, ALPHABETA, RESERVE BANK OF AUSTRALIA