REVENUE – GOVERNMENT POLICY – AUSTRALIA

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

States to whack back over GST gas threat

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Oct-17

The issue of anti-terrorism measures will be the focus of the Council of Australian Governments meeting on 5 October. However, New South Wales Premier Gladys Berejiklian intends to raise a number of issues, including the Federal Government’s proposal to reduce the share of goods and service tax revenue paid to states that maintain restrictions on gas exploration and production. Meanwhile, Victorian Premier Daniel Andrew continues to advocate the introduction of a domestic gas reserve, arguing that only gas that is surplus to households’ and businesses’ requirements should be exported.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

China behind budget’s improved look

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 27-Sep-17

The Federal Government has reported a Budget deficit of $A33.2bn for 2016-17. This is $A4.4bn lower than was forecast in May, and it is the nation’s smallest deficit since 2013. The improvement has been attributed to factors such as higher commodity prices due to continued strong demand in China, as well as reduced government expenditure on welfare as a result of growth in jobs. Goods and services tax and corporate tax revenue also rose.

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

Unseasonal iron ore rally boosts budget

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 21-Jul-17

The iron ore price peaked at a three-month high above $US70 a tonne on 20 July. The price of the steel input has risen by 31 per cent in just over a month, and it has averaged $US65.12 a tonne since the start of July. Paul Bloxham of HSBC estimates that this will increase the Australian Government’s revenue by about $US1.25bn in 2017-18. The May 2017 Budget had forecast that iron ore would average $US55 a tonne in 2017-18. Bloxham expects the iron ore price to fall to around $US50 a tonne by late 2017.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD

Top rate to swamp 1.2m taxpayers

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Original article by Adam Creighton
The Australian – Page: 1 & 2 : 6-Jul-17

Analysis of data from the Parliamentary Budget Office suggests that 7.3 per cent of Australians – or nearly 1.2 million people – will be paying the highest marginal tax rate in 2028, compared with just three per cent in 2015. The PBO data also shows that the Federal Government’s total income tax revenue will rise from about $A177bn in 2016 to $A378bn in 2028. The projections are based on expectations that Australia’s population will rise to 29.1 million over the next decade.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA

Work expense claims crackdown looms as ATO eyes rorts

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 19-Jun-17

Richard Highfield, who provides guidance to the Australian Taxation Office on "revenue leakage" issues, suggests that tax deduction rorting could be costing the Federal Government up to $A1.2 billion per annum. He says that deductions on car expenses is the biggest cause of concern for the ATO and Treasury, while ATO commissioner Chris Jordan noted in April 2017 that excessive claims for work expenses is a bigger loss of revenue than tax evasion by multinationals. Taxpayers claimed $A21.8 billion in work-related deductions in 2014-15.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, LIBERAL PARTY OF AUSTRALIA

PM ‘won’t blow’ iron ore bonus

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 11-Mar-16

The benchmark iron ore price has fallen below $US60 per tonne, although it remains significantly above the forecast of just $US39/tonne in the Australian Government’s mid-year Budget update. A sustained upturn in the price of the steel input could potentially boost government revenue by up to $A15bn over four years. However, government sources have indicated that the additional revenue will be used to reduce the deficit instead of financing larger tax cuts than the modest reduction that the Government is planning.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RESERVE BANK OF NEW ZEALAND, EUROPEAN CENTRAL BANK, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION

Resources surge offers PM hope of budget boost

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Original article by David Uren
The Australian – Page: 1 & 2 : 9-Mar-16

The Australian Government’s Budget bottom line is expected to be boosted by the rebound in commodity prices. Iron ore and crude oil prices have rallied in recent weeks, which may help to offset the $A7bn in forgone government revenue due to the sharp downturn in commodity prices in 2015. The iron ore price has risen above $US60 per tonne in early March, compared with the Government’s revised forecast of just $US39/tonne in its mid-year Budget update in December.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, INTERNATIONAL MONETARY FUND, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Ministers told: stop spending

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Original article by Dennis Shanahan
The Australian – Page: 1 & 4 : 17-Feb-16

Treasurer Scott Morrison will use a National Press Club speech on 17 February 2016 to stress the need to ensure that government spending does not exceed revenue. He will argue that increased taxation should not be used to lift revenue above expenditure, and caution against justifying new spending measures by offsetting them against savings achieved elsewhere. Meanwhile, Prime Minister Malcolm Turnbull has officially ruled out an increase in the GST but says action must be taken on the issue of income tax "bracket creep".

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

Iron ore budget hole gets bigger

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Mar-15

Prime Minister Tony Abbott says his government will balance the Budget in about five years’ time. However, the continued fall in the price of iron ore since late 2014 is expected to reduce government revenue by $A1.8bn a year. The mid-year Budget update had forecast an average iron ore price of $US60 per tonne, but it has since traded at a low of $US56. Meanwhile, Education Minister Christopher Pyne will press ahead with university reforms, despite the bill being rejected by the Senate for a second time on 17 March 2015

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA. DEPT OF SOCIAL SERVICES, LIBERAL PARTY OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD