INTERGOVERNMENTAL FISCAL RELATIONS – AUSTRALIA

Growth-sapping GST must face overhaul: miners

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Original article by Sid Maher
The Australian – Page: 1 & 2 : 9-Jan-17

The Minerals Council of Australia has used its submission to the Productivity Commission’s five-year productivity review to urge changes to the system for distributing goods and services tax revenue. The MCA argues that the current system redirects GST revenue from states that have encouraged the development of natural resources to states that place strictures on mining and energy projects. The MCA has also called for a reduction in the corporate tax rate and action to address the power of unions under the Fair Work Act.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

PM’s GST floor to stem mine tax leakage: Grylls

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Original article by Andrew Burrell
The Australian – Page: 6 : 14-Dec-16

The Minerals Council of Australia has released a report which suggests that Western Australia would lose $A2.02bn worth of GST revenue if it increased the iron ore levy. However, WA National Party leader Brendon Grylls argues that this analysis excluded the impact of the Federal Government’s proposed "floor" for the distribution of GST revenue. The state would be likely to retain most of the proceeds of the levy, as its share of GST revenue has fallen well below the proposed floor of about $A0.70 in the dollar.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Parties split over Adani coal loan

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Original article by Phillip Coorey, Mark Ludlow
The Australian Financial Review – Page: 1 & 2 : 6-Dec-16

The Carmichael coal and rail project had received initial approval from the Queensland and Federal Governments, but the funding for the project has not yet been arranged. Queensland Premier Annastacia Palaszczuk has requested the Federal Government to provide Adani with a loan of up to $A1 billion from the Northern Australia Infrastructure Fund. The Australian Labor Party says the private project should not be subsidised with public funds.

CORPORATES
ADANI MINING PTY LTD, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. DEPT OF MINES AND ENERGY

State threats to Turnbull agenda

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Original article by Phillip Coorey, Joanna Mather
The Australian Financial Review – Page: 1 & 4 : 30-Nov-16

The Federal Government’s competition reform plan will be discussed at a meeting of federal and state treasurers on 2 December 2016. The Victorian Government has warned that it may withdraw from an intergovernmental agreement that would provide the states with financial incentives for implementing reforms that increase competition and productivity. Treasurer Tim Pallas argues that the draft agreement provides limited information on funding arrangements.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Turnbull’s GST plan stirs party rebels

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Original article by Phillip Coorey
The Australian Financial Review – Page: 7 : 16-Aug-16

There is dissent within the Coalition’s ranks over a new proposal for the distribution of GST revenue. Prime Minister Malcolm Turnbull has proposed the introduction of a "floor price" to ensure that no state is disadvantaged in the allocation of GST revenue. Each state would be guaranteed at least 70-75 per cent of their per capita share of GST revenue. However, Tasmanian Liberal senators have cautioned against changing the current revenue-sharing arrangement.

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

Turnbull’s GST pledge sparks row

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Original article by David Uren, Andrew Burrell
The Australian – Page: 1 & 2 : 15-Aug-16

Prime Minister Malcolm Turnbull has told the state conference of the Liberal Party of Western Australia that the system for distributing GST revenue will be revamped. Some 70 per cent of WA’s share of GST revenue is allocated to other states, but Premier Colin Barnett argues that each state should receive at least 75 per cent of their per capita share of revenue. Turnbull has proposed changing the system to ensure that each state receives a minimum share of their largest source of GST revenue. Tasmanian Premier Will Hodgman says Turnbull has not consulted the states and territories, adding that he will oppose any change to the system.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, TASMANIA. DEPT OF PREMIER AND CABINET, QUEENSLAND. TREASURY, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, LIBERAL PARTY OF WESTERN AUSTRALIA, VICTORIA. DEPT OF TREASURY AND FINANCE, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Forrest slams Grylls over tax threat

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Original article by Julie-anne Sprague, Tess Ingram
The Australian Financial Review – Page: 6 : 10-Aug-16

Fortescue Metals Group founder Andrew Forrest has criticised a proposal by new Western Australian National Party leader Brendan Grylls to impose an iron ore tax on BHP Billiton and Rio Tinto. Grylls has proposed changes to state agreements with the two resources giants to increase the levy on iron ore out from $A0.25 per tonne to $A5. Fortescue would not be affected as its state agreement is more recent. Grylls says the levy will not proceed if BHP and Rio successfully lobby the Federal Government to overhaul the system for distributing GST revenue.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, MINERALS COUNCIL OF AUSTRALIA

Turnbull wants to end federal funding of schools

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 1-Apr-16

Prime Minister Malcolm Turnbull has proposed radical changes in fiscal relations between the federal and state governments. He envisages ceding responsibility for public schools and the health system to the states in exchange for granting more fiscal powers to the states. He will unveil the details of his plan at a Council of Australian Governments meeting in Canberra on 1 April 2016.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA

States resist Turnbull offer to tax incomes

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 31-Mar-16

Prime Minister Malcolm Turnbull and Treasurer Scott Morrison will discuss fiscal matters at a meeting with their state counterparts on 1 April 2016. Turnbull will propose a new intergovernmental taxation arrangement. The proposal includes a cut of about two percentage points in income tax rates and the introduction of an income tax surcharge by states and territories to compensate for the negative effects of the income tax cut on their tax revenues. The states are divided in their opinions on the proposal.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, VICTORIA. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

$100b GST hike to pay for tax cuts

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 4 : 1-Feb-16

The New South Wales Government will make a final push to achieve consensus among the states and territories on changes to the GST. Premier Mike Baird has previously advocated lifting the GST to 15 per cent and spending all proceeds on hospitals, education and compensation for the tax increase. However, he now proposes using the proceeds of the GST increase in the first year to finance corporate and personal income tax cuts, as well as compensation. Meanwhile, $A7bn of GST revenue would be allocated to hospitals and the education system in the three years to 2019-20.

CORPORATES
NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT