SMALL BUSINESS – TAXATION – AUSTRALIA

Scurry to plug tax loophole for the wealthy

roymorgansocial Leave a comment

Original article by Nick Tabakoff
The Australian – Page: 2 : 5-Jul-17

Financial Services Minister Kelly O’Dwyer has advised the Australian Taxation Office that the Federal Government’s tax cuts for small businesses were not meant to apply to passive family investment companies. BDO’s Tony Sloan argues that the ATO is merely applying the existing tax cuts legislation, which he says is sufficiently broad to include family investment vehicles. Sloan adds that the Government may have to amend the legislation in order to ensure that such investment vehicles cannot claim tax refunds and deductions.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

ATO signals tax windfall for wealthy

roymorgansocial Leave a comment

Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Jul-17

A draft tax ruling issued by the Australian Taxation Office in March 2017 could allow "passive" family investment companies to claim tax refunds and deductions. The draft ruling overturned the generally-accepted view that such family investment companies – which do not actively carry on a business – would not be eligible for the reduction in the company tax rate for small businesses from 30 per cent to 27.5 per cent over recent years. Tony Sloan of BDO says the draft ruling would affect many of the firm’s clients, as most would have filed tax returns for 2016 at the full tax rate of 30 per cent.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, NATIONAL TAX LIAISON GROUP

Labor tax cut block to hit 100,000 businesses

roymorgansocial Leave a comment

Original article by Joe Kelly, Sarah Vogler
The Australian – Page: 1 & 2 : 12-Oct-16

The business sector says the Australian Labor Party should reconsider its commitment to restricting a tax cut to businesses with turnover of $A2m rather than the Federal Government’s proposed threshold of $A10m. Tony Greco of the Institute of Public Accountants notes that between 90,000 and 100,000 businesses that boast turnover of $A2m to $A10m have employees and are more likely to use tax relief to take on additional staff than businesses that are below the $A2m threshold, as many of them are sole proprietors.

CORPORATES
AUSTRALIAN LABOR PARTY, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED, MYOB GROUP LIMITED – ASX MYO, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CORELLA CONSTRUCTION

Company tax cuts to be scaled back

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 2 : 15-Sep-16

The Australian Government plans to introduce legislation in the lower house to implement its full 10-year plan to reduce the company tax rate for all businesses. However, it is preparing to prioritise tax cuts for small businesses when the legislation is debated in the Senate, due to expectations that the full policy will be rejected by the upper house. The Government plans to reduce the tax rate for businesses with annual turnover of up to $A10m to 27.5 per cent, although the Opposition favours a turnover threshold of just $A2m.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, BUSINESS COUNCIL OF AUSTRALIA, NICK XENOPHON TEAM, ONE NATION PARTY

PM puts tax cuts on first day agenda

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 6 : 1-Jul-16

Prime Minister Malcolm Turnbull says the Coalition is a united team and is committed to implementing its economic plan. In his last major speech of the election campaign, Turnbull identified tax cuts for employees and small businesses as the Coalition’s top priority if it is re-elected. Industrial relations will also be a priority, including legislation to reinstate the Australian Building & Construction Commission. Turnbull also emphasised that a strong economy is essential for the delivery of government services such as healthcare and education.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIAN GREENS, FAIRFAX MEDIA LIMITED – ASX FXJ, IPSOS AUSTRALIA PTY LTD, VICTORIA. COUNTRY FIRE AUTHORITY, NATIONAL PRESS CLUB (AUSTRALIA)

Business rebuts tax-cut attacks

roymorgansocial Leave a comment

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 9-Jun-16

The heads of four Australian employers’ and industry groups have criticised opponents of the Federal Government’s proposal to progressively reduce the company tax rate over 10 years. They note that GDP will be boosted by one per cent on an ongoing basis as a result of the tax cuts, and argue that there is no justification for taxing businesses at a different rate depending on their size. The business leaders also warn that opposition to the tax cuts reflects broader anti-business sentiment.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED

Morrison carves up super to fund business tax cuts

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: B1-B2 : 4-May-16

The Australian Government forecasts that the Budget deficit will rise from $A37.4bn to $A39.9bn in 2015-16, while it expects the nation’s net debt to peak at 25.8 per cent of GDP in 2017-18. The May 2016 Budget outlines plans to progressively reduce the tax rate for all businesses to 25 per cent by 2026-27. Businesses whose turnover does not exceed $A10m will benefit from 1 July, when their tax rate will be reduced to 27.5 per cent. The Budget also includes changes to the tax regime for superannuation contributions and an increase in the $A80,001 income tax threshold to $A87,001.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA

Tax cut to 27.5pc for SMEs while big end of town waits

roymorgansocial Leave a comment

Original article by Sid Maher
The Australian – Page: 1 & 4 : 3-May-16

The Australian Government’s May 2016 Budget will include a one per cent reduction in the small and medium enterprise tax rate, to 27.5 per cent. The lower tax rate is expected to apply to companies with turnover of up to $A5m, compared with a threshold of $A2m at present. Unincorporated businesses and sole traders are also expected to receive tax relief in the Budget. However, the tax rate for large companies will remain at 30 per cent, although the Government plans to progressively reduce it to 25 per cent.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Company tax cuts: in the future

roymorgansocial Leave a comment

Original article by Phillip Coorey, Patrick Durkin, Jamie Freed
The Australian Financial Review – Page: 1 & 4 : 2-May-16

The Australian Government’s May 2016 Budget is expected to provide tax relief for small and medium enterprises. However, the Government is likely to opt to phase in a reduction in the corporate tax rate over a period of time. The Business Council of Australia continues to push for the tax rate for all businesses to be initially reduced to 28.5 per cent, and eventually to just 25 per cent. Meanwhile, some business leaders argue that a priority for the Budget should be ensuring that government spending is sustainable.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, FORTESCUE METALS GROUP LIMITED – ASX FMG, SEEK LIMITED – ASX SEK, AUSTRALIA POST, AUSTRALIA. DEPT OF THE TREASURY, KPMG AUSTRALIA PTY LTD, NESTLE AUSTRALIA LIMITED, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN LABOR PARTY, SQUARE PEG CAPITAL PTY LTD

Budget woos small firms, start-ups

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 25-Mar-15

The Australian Government’s May 2015 Budget will include tax relief for small businesses, including those that are not incorporated. There were concerns that they would not receive the proposed 1.5 per cent reduction in the company tax rate for small businesses. The Government may also introduce accelerated depreciation for assets held by small businesses, while it intends to wind back changes to employee option schemes that were implemented by the Australian Labor Party

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET