INCOME TAX – GOVERNMENT POLICY – AUSTRALIA

Morrison to pledge a surplus of tax cuts

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Original article by David Uren, Ben Packham
The Australian – Page: 1 & 4 : 1-May-18

Treasurer Scott Morrison says the Federal Government will ensure that tax revenue is capped at no more than 23.9 per cent of GDP, and it will cut personal income taxes when necessary to avoid breaching this threshold. However, shadow treasurer Chris Bowen says this suggests that the Coalition has backtracked on its stated policy of achieving a Budget surplus that is equivalent to one per cent of GDP. Business Council of Australia CEO Jennifer Westacott argues that personal income tax cuts should not be on the government’s agenda unless it also pursues measures that will increase productivity, such as reducing the corporate tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD

Wage growth to pick up

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Original article by Laura Tingle, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Feb-18

Federal Treasurer Scott Morrison argues that a proposed across-the-board reduction in the company tax rate will boost wages and job security, noting that US companies have already begun increasing wages in the wake of the Trump administration’s tax reforms. He has called on businesses to promote the benefits of the proposed company tax cuts for the broader economy. Morrison has also indicated that financing personal income tax cuts via an increase in the goods and services tax will not be on the Coalition’s policy agenda for the next federal election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Income tax rises to save budget

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Original article by David Uren
The Australian – Page: 4 : 20-Oct-17

The Parliamentary Budget Office estimates that personal income tax will account for 12.5 per cent of Australia’s GDP by 2020-21. This compares with 11.3 per cent of GDP at present and a record low of 9.3 per cent in 2009-10. The Federal Government’s May 2017 Budget had forecast that revenue from personal income tax will top $A253bn in 2021, which is 30 per cent higher than in 2016-17. Factors such as "bracket creep" and an increase in the Medicare levy to finance the National Disability Insurance Scheme are expected to offset low growth in wages.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF THE TREASURY

Coalition tips Medicare Levy will get over the line

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Original article by David Crowe
The Australian – Page: 1 & 2 : 17-Aug-17

The Federal Government is optimistic that its proposed 0.5 per cent increase in the Medicare levy will be passed by the Senate. The bill will be put before the upper house on 17 August, although a vote is unlikely before September. The increase in the levy is one of 10 bills that were endorsed by the Coalition’s partyroom on 16 August. The Opposition is pushing for the increased levy to be restricted to people whose annual income exceeds $A87,000. The Government hopes to secure the support of crossbenchers.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, ONE NATION PARTY, AUSTRALIAN GREENS

No respite from bracket creep for another five years

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Original article by Adam Creighton
The Australian – Page: 1 & 7 : 21-Jul-17

Professor Bob Gregory has told a conference in Melbourne that the Federal Government appears to be hoping that increased tax revenue will restore the Budget to surplus. He also noted that it had not been able to reduce expenditure in terms of its share of GDP, although it is managing to control it. Prime Minister Malcolm Turnbull told the conference that he hopes to reintroduce legislation to have the company tax lowered to 25 per cent by the end of 2017, while he noted that the government has prevented around 500,000 taxpayers being placed in a higher tax bracket by increasing the second-highest tax threshold by $A7,000.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA

Both sides dig in for battle over top tax rate

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

Opposition Leader Bill Shorten will reiterate his party’s stance on increasing the Medicare levy in an address to the Committee for Economic Development of Australia summit. Labor wants the income threshold for the 0.5 per cent increase in the levy to be set at $A87,000, rather than being applied to all income-earners. Shorten will also defend Labor’s own increase in the levy in 2013, arguing that there was strong growth in wages at the time, while there had also been a recent increase in the tax-free threshold.

CORPORATES
AUSTRALIAN LABOR PARTY, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Labor push for 49.5pc top tax hit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 12-May-17

Federal Opposition Leader Bill Shorten has used his Budget reply speech to outline measures to provide funding for the National Disability Insurance Scheme. He advocated retention of the two per cent temporary deficit levy for high-income earners and increasing the Medicare levy by 0.5 per cent for people on incomes of more than $A87,000. This would increase the highest marginal tax rate to 49.5 per cent. Shorten also said the Opposition supports a proposed bank levy, although he stressed that the cost should not be passed on to customers.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, DELOITTE ACCESS ECONOMICS PTY LTD

Good timing, as Morrison tips tax cuts in 2018

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Original article by Jacob Greber, Laura Tingle
The Australian Financial Review – Page: 9 : 11-May-17

The Australian Government aims to limit the nation’s tax-to-GDP ratio to 23.9 per cent. This cap is expected to be reached in 2022-23, although this could occur earlier due to factors such as income tax "bracket creep". Treasurer Scott Morrison has conceded that the Government may have to take action to avert this before 2022-23. He has flagged the possibility of personal income tax cuts in 2018, prior to the next federal election. The tax-to-GDP ratio is projected to be 21.5 per cent in 2016-17.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Shorten ‘a serial liar’ on super, tax

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Original article by David Crowe
The Australian – Page: 1 & 8 : 10-Nov-16

Treasurer Scott Morrison is frustrated with the Australian Labor Party’s refusal to support his superannuation and tax reforms. The Government proposed a 19 per cent income tax on backpackers but Labor favours Senator Jacqui Lambie’s alternative plan for a 10.5 per cent tax. Labor also opposes allowing women to make "catch up" super contributions and the introduction of tax deductions for super contributions made by small business owners.

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

Morrison says lower backpacker tax is competitive

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Original article by Laura Tingle
The Australian Financial Review – Page: 8 : 29-Sep-16

Treasurer Scott Morrison has rejected criticism of the tax treatment of non-resident income. Faced with opposition from tourism operators and farmers to the original proposal of a 32.5 per cent backpackers tax rate, the Government has reduced it to 19 per cent. However, at the same time it has proposed raising the passenger departure tax by $A5. Morrison said the new tax will not make Australia less attractive to backpackers than New Zealand, the UK and Canada.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY