SUPERANNUATION – TAXATION – AUSTRALIA

PM scrambles for a tax policy

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 9-Feb-16

Treasurer Scott Morrison says tax reform will be included in the May 2016 Budget, although the Australian Government has backed down on its proposal to increase the GST. It will instead look at options such changes to superannuation tax concessions and reducing income tax rates via the abolition of tax deductions for work-related expenses. However, Morrison has ruled out making any changes to the negative gearing regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE

Morrison vows strong changes to tax system

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Original article by Primrose Riordan
The Australian Financial Review – Page: 4 : 22-Jan-16

The GST and superannuation tax concessions may be the Australian Government’s tax reform agenda, while Treasurer Scott Morrison has indicated that the corporate tax rate may also be under scrutiny. Meanwhile, Morrison says recent financial market volatility is likely to influence the timing of the 2016 federal election, and will most likely rule out an early poll. Opposition Leader Bill Shorten has warned that increasing the GST in the wake of the sharemarket rout would hurt consumer confidence.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Wealthy accept super tax rise, adviser says

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Original article by Sally Rose, Joanna Mather
The Australian Financial Review – Page: 4 : 14-Jan-16

There is growing recognition that superannuation tax breaks are too generous for the wealthy. Under the current regime, the super contributions of those earning less than $A300,000 a year are taxed at 15 per cent. A tax rate of 30 per cent applies to the contributions of those with annual earnings of more than $A300,000. Deloitte has proposed reducing the tax rate on super for low-income earners to six per cent and raise it to 34 per cent for those earning between $A180,000 and $A300,000.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RICE WARNER ACTUARIES PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, FINANCIAL SERVICES COUNCIL

Call for lifetime $580k super cap

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Original article by Sally Rose
The Australian Financial Review – Page: 5 : 18-Nov-15

A new report from accounting firm Deloitte has proposed limiting concessional superannuation contributions during a fund member’s working life to $A580,000. At present there is an annual cap on personal contributions that attract a lower tax rate of just 15 per cent. Deloitte estimates that the average working Australian would have to contribute $A580,000 to their super fund to ensure a retirement balance of $A1m.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Rich could pay 27pc super tax

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Original article by Phillip Coorey, Jennifer Hewett
The Australian Financial Review – Page: 1 & 2 : 11-Nov-15

Most Australians’ contributions to their superannuation funds are taxed at 15 per cent at present. The tax reform options being examined by the Federal Government include a proposal to tax super contributions at 20 percentage points below a taxpayer’s marginal income tax rate. Treasurer Scott Morrison has indicated that the Government’s focus is on taxing super at the accumulation phase. In contrast, the Opposition’s policy is centred on taxing super upon retirement.

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

Extra taxes for rich would raise $8b

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Original article by Joanna Mather, Primrose Riordan
The Australian Financial Review – Page: 1 & 4 : 26-Oct-15

Deloitte has released a report which proposes taxing superannuation in the same way that income is taxed. The flat tax rate of 15 per cent for super contributions would be replaced with a progressive tax system whereby low income earners would pay a contributions tax of just six per cent, while those on higher incomes would pay 34 per cent. Deloitte also proposes reducing the capital gains tax discount from 50 per cent to 33 per cent.

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

Tax options put back on table

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 22-Sep-15

Prime Minister Malcolm Turnbull has given indications that the Australian Government is open to a wide range of tax reforms. This is likely to include reforms that had been ruled out by former PM Tony Abbott. Meanwhile, South Australian Labor Premier Jay Weatherill wants the Government to review superannuation tax concessions. He also says the federal Australian Labor Party should reconsider its opposition to an increase in the goods and services tax.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

Super tax breaks ‘lurks for the rich’

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 19-Aug-15

The Grattan Institute advocates a review of superannuation tax breaks, negative gearing and the capital gains tax discount which, the institute says, are used mainly by rich Australians. The institute states in a paper to be presented at the National Reform Summit that wealthy Australians do not need tax incentives; they would save for retirement without them.

CORPORATES
GRATTAN INSTITUTE, THE MENZIES RESEARCH CENTRE LIMITED, THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Super tax reversal revealed

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 9 : 1-Jul-15

Shadow treasurer Chris Bowen says the Federal Government should release four submissions made by the Treasury to Treasurer Joe Hockey on the issue of superannuation tax reform. In late June 2015, Treasury official Ian Beckett sent a letter to the Opposition in response to a Freedom of Information request for details of the submissions. One of the submissions was made on the same day that the Opposition released its own superannuation tax proposals. The Government subsequently took such tax reform off its agenda.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, LIBERAL PARTY OF AUSTRALIA

Directors blast Coalition over tax

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Original article by Agnes King
The Australian Financial Review – Page: 5 : 21-May-15

Corporate directors have criticised the Australian Government for failing to include GST and superannuation in its tax reform agenda. Perpetual director Sylvia Falzon says tax reform is "pointless" if these issues are not part of the debate, while Wesfarmers director Jennifer Westacott argues that tax reform will encourage greater investment and workforce participation.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WESFARMERS LIMITED – ASX WES, BUSINESS COUNCIL OF AUSTRALIA, SAI GLOBAL LIMITED – ASX SAI, REGIS HEALTHCARE LIMITED – ASX REG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BRAMBLES LIMITED – ASX BXB, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, STOCKLAND – ASX SGP, BUSINESS COALITION FOR TAX REFORM