Reform taxes to help economy recover, IMF tells Australia

Original article by John Kehoe
The Australian Financial Review – Page: 2 : 26-Oct-20

Harald Finger of the International Monetary Fund has expressed support for federal government measures such as the JobKeeper wage subsidy scheme in response to the coronavirus pandemic. Finger also agrees that the JobKeeper scheme needs to be wound back as the domestic economy recovers, and the focus should shift to economic reforms that boost growth in productivity and investment. The IMF Mission chief to Australia also advocates a reduction in the corporate tax rate and increasing the goods and services tax.

CORPORATES
INTERNATIONAL MONETARY FUND

Australia among highest corporate tax collectors: OECD

Original article by Matthew Cranston, Tom McIlroy
The Australian Financial Review – Page: 7 : 9-Jul-20

A report from the Organisation for Economic Co-operation & Development shows that corporate tax accounted for about 5.5 per cent of Australia’s GDP in 2017. This compares with an average of three per cent across all OECD member nations. The US and the Bahamas are among 15 jurisdictions whose corporate tax rates comprise less than two per cent of GDP. Treasurer Josh Frydenberg contends that Australia’s lower value add tax is a key reason for the nation’s personal and corporate income tax rates being higher than the OECD average.

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

Second wave would be $25bn tsunami

Original article by Patrick Commins
The Australian – Page: 4 : 11-Jun-20

The OECD’s latest economic outlook report forecasts that the Australian economy will contract by five per cent in 2020, compared with an average decline of 7.5 per cent among member nations. The OECD also expects the domestic economy to rebound by 4.1 per cent in 2021, in the absence of a second wave of the coronavirus. A fresh outbreak would reduce GDP growth in 2021 to just one per cent, according to the OECD. The Paris-based organisation expects the global economy to contract by 6% in 2020, and 7.6% if there is a second wave.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

World Health Assembly agrees to independent inquiry and global strategy to fight COVID-19

Original article by
The New Daily – Page: Online : 20-May-20

The World Health Assembly has formally adopted a resolution calling for an impartial and independent review into the global response to the coronavirus pandemic. There was unanimous support among the World Health Organization’s member nations for the push to hold an inquiry, which had been led by Australia and the European Union. Health Minister Greg Hunt and Foreign Affairs Minister Marise Payne have welcomed the passing of the resolution.

CORPORATES
WORLD HEALTH ASSEMBLY, WORLD HEALTH ORGANIZATION, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

World coalition backs Australia

Original article by Ben Packham
The Australian – Page: 1 & 6 : 18-May-20

The UK, New Zealand and Japan are among 62 nations that have agreed to support a motion calling for an independent inquiry into the origin of the coronavirus when the World Health Assembly meets on 18 May. Australia has led the push for an inquiry into the pandemic, and Foreign Minister Marise Payne stresses that international collaboration is needed so the world can prevent or respond to future pandemics. Meanwhile, President Donald Trump has indicated that the US may be prepared to restore its funding for the World Health Organization, although only the same amount of money that China contributes.

CORPORATES
WORLD HEALTH ASSEMBLY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, WORLD HEALTH ORGANIZATION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

IMF jumped the gun with dire forecasts: Frydenberg

Original article by Patrick Commins
The Australian – Page: 4 : 16-Apr-20

Treasurer Josh Frydenberg has downplayed the International Monetary Fund’s latest economic growth and unemployment forecasts for Australia. He argues that they were made prior to pandemic stimulus measures such as the $130bn JobKeeper scheme. New figures show that more than 838,000 businesses have applied for the wage subsidy to date. The IMF has forecast that the domestic economy will contract by 6.7 per cent in 2020, although Alan Oster of National Australia Bank expects GDP growth to fall by just 4.3 per cent.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, INTERNATIONAL MONETARY FUND, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Worst year since Great Depression

Original article by Patrick Commins
The Australian – Page: 1 & 4 : 15-Apr-20

The International Monetary Fund has forecast that the Australian economy will contract by 6.7 per cent in 2020 due to the coronavirus lockdown. However, the IMF expects the domestic economy to rebound by 6.1 per cent in 2021, assuming that measures to contain the virus are successful. The IMF’s latest World Economic Outlook also forecasts that global GDP growth will fall by three per cent in 2020, compared with just 0.1 per cent during the global financial crisis. The IMF has warned of the potential for a second wave of the coronavirus if a vaccine is not developed.

CORPORATES
INTERNATIONAL MONETARY FUND

Will Australia win from new tax rules?

Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 6-Jan-20

The OECD and the Group of 20 are heading an initiative to re-write international tax laws to cope with the digital age. The proposed system could include an effective minimum rate of global tax and the adoption of new global allocation rules. Some countries have sought to act unilaterally in the adoption of digital services taxes on US digital companies like Google and Facebook, but the Trump administration has sought to ‘punish’ such countries by the imposition of tariffs. There are hopes a new international tax system could be in place by the end of 2020, but some tax experts have their doubts.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, GROUP OF TWENTY (G-20), FACEBOOK INCORPORATED, GOOGLE INCORPORATED

Asia’s coal hunger to lift exports

Original article by Greg Brown, Perry Williams
The Australian – Page: 1 & 2 : 18-Dec-19

Australia’s coal production will grow by 1.4 per cent annually over the next five years, according to a report from the International Energy Agency. The nation’s coal output is forecast to top 444 million tonnes in 2024, compared with 409 million tonnes in 2018. Thermal coal exports are forecast to increase from 203 million tonnes to 223 million tonnes over this period, with coking coal shipments to rise from 179 million tonnes to 196 million tonnes. Demand for Australian coal is expected to be driven by nations such as India, Vietnam and Indonesia. Greens MP Adam Bandt has called for legislation to phase out coal exports by 2030, claiming that "coal will kill us".

CORPORATES
INTERNATIONAL ENERGY AGENCY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, MINERALS COUNCIL OF AUSTRALIA, ADANI MINING PTY LTD, SIEMENS AG

Tax on income, profit world’s second highest

Original article by John Kehoe
The Australian Financial Review – Page: 6 : 6-Dec-19

Australian companies are paying the third-highest share of tax to governments of OECD countries, according to a new tax report from the OECD. It also shows that personal income tax accounts for 40.3 per cent of total government revenue. The report highlights Australia’s heavy reliance on taxes on property, personal income and business profits, and will put pressure on the federal government to undertake major tax reform in order to stimulate the economy.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT