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
Original article by Tim Boyd, Patrick Durkin
The Australian Financial Review – Page: 7 : 5-Jul-19
Carpet Court CEO James Hayward predicts that the $1,080 tax rebate that most low and middle income earners will receive in the next few months will provide a similar boost to the economy as Kevin Rudd’s 2009 stimulus package. That package saw around 10 million Australians receive $900. His comments are echoed by MYOB CEO Tim Reed, who notes that low and middle income earners have a "high propensity to spend".
CARPET COURT AUSTRALIA LIMITED, MYOB GROUP LIMITED, KOGAN.COM LIMITED – ASX KGN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA
Original article by Geoff Chambers, Adam Creighton, Greg Brown, Michael Roddan
The Australian – Page: 1 & 4 : 5-Jul-19
Harvey Norman executive chairman Gerry Harvey says the federal government’s income tax cuts will boost the retail sector and consumer spending. The tax cuts have also been welcomed by Business Council of Australia CEO Jennifer Westacott, who says further action is needed to ensure long-term economic growth. Meanwhile, Chris Richardson of Deloitte Access Economics expects the tax cuts to have a bigger impact in the near-term than the recent interest rate cuts. Labor agreed to back the full tax package in the Senate after its proposal to bring forward the stage-two cuts and legislate stage three separately was rejected.
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BUSINESS COUNCIL OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AMP CAPITAL INVESTORS LIMITED, AUSTRALIAN TAXATION OFFICE, ONE NATION PARTY, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED
Original article by Simon Benson, Rosie Lewis
The Australian – Page: 1 & 4 : 4-Jul-19
Senior federal government sources have indicated that independent senator Jacqui Lambie has agreed to support the Coalition’s full income tax cuts package. Lambie had pushed for the government to waive the $157m public housing debt of her home state of Tasmania in return for backing the tax bill. Fellow independent Cory Bernardi and Centre Alliance’s Rex Patrick and Stirling Griff will also support the full tax package, giving the Coalition sufficient numbers in the Senate to pass it. Labor will decide its stance on the tax package before it is put before the Senate on 4 July.
CENTRE ALLIANCE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY