TAX CREDITS – AUSTRALIA

Investment tax break call falls on deaf ears

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Original article by Brad Thompson
The Australian Financial Review – Page: 6 : 19-Jun-24

The federal government has declined to state its position on whether companies with links to China will be eligible to receive production tax credits. Resources Minister Madeleine King says the main purpose of this incentive is to encourage the downstream processing of critical minerals in Australia. She acknowledged that China-based Tianqi is doing this at its Kwinana lithium processing plant in Western Australia. Chinese Premier Li Qiang visited the plant on Tuesday, accompanied by Prime Minister Anthony Albanese. Li has told China’s state-run media that he hopes for a "fair and non-discriminatory" business environment for Chinese companies that have assets in Australia.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TIANQI LITHIUM CORPORATION

PC: mining subsidy not tax reform

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 5-Jun-24

Productivity Commission chair Danielle Wood has defended the federal government’s critical minerals production tax credit regime, which was a key measure in the 14 May budget. Wood has told a Senate estimates hearing that the tax credit scheme is tax policy rather than tax reform. However, Treasurer Jim Chalmers has repeatedly described the tax credits scheme as tax reform. Wood also contended that reducing Australia’s company tax rate of 30 per cent would make the nation more internationally competitive.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Dutton’s views on tax credits wrong: MinRes

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 : 22-May-24

Treasury modelling suggests that mining companies could receive $17.6bn worth of production tax credits over 14 years for the downstream processing of critical minerals. Opposition leader Peter Dutton has labelled the budget measure as "billions for billionaires" and committed to vetoing the policy. However, Mineral Resources’ MD Chris Ellison believes that Dutton will eventually realise that he is wrong to oppose a policy that will support projects that will contribute revenue for more than five decades. Meanwhile, Mineral Resources has begun loading the first shipment of iron ore from its Onslow Iron Project in the West Pilbara; work on the project started less than a year ago.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, LIBERAL PARTY OF AUSTRALIA

Miners hail $17.6b in tax credits – but BHP nickel still on death row

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 15-May-24

Australia’s critical minerals industry has welcomed the federal government’s decision to provide the sector with a 10 per cent production tax credit. However, the budget measure may not ensure the future of BHP’s nickel operations in Western Australia, given that the tax credit will not be availabe until 2027. The potential closure of BHP’s nickel mines, refinery and smelter would result in the loss of about 3,000 jobs; BHP has previously warned that tax credits may not be enough to save the Nickel West business, which is contending with a glut of low-cost nickel produced in Indonesia with Chinese backing.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST

CBS set for windfall on Ten’s tax credits

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Original article by Darren Davidson
The Australian – Page: 24 : 11-Sep-17

­KordaMentha’s report on Ten Network shows that the collapsed broadcaster’s unrecorded tax ­losses of $A58.9m could be utilised by CBS Corporation if it gains full ownership. The tax-loss credits could potentially enable CBS to book large profits before it becomes liable to pay any tax on Ten’s earnings. CBS requires approval from the Foreign Investment Review Board to acquire Ten, while businessmen Bruce Gordon and Lachlan Murdoch are seeking a court ruling that KordaMentha’s creditors’ report lacked sufficient detail.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN TAXATION OFFICE, SUPREME COURT OF NEW SOUTH WALES, 21ST CENTURY FOX INCORPORATED

Re-think urged on share income tax

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Original article by Joanna Mather
The Australian Financial Review – Page: 11 : 25-Sep-15

Australia’s dividend imputation system is under scrutiny in the wake of BHP Billiton’s proposal to use a payment from its Australian-listed company to fund a dividend payout for British shareholders. This would result in Australian shareholders losing some franking credits. Fidelity Australian Opportunities Fund portfolio manager Kate Howitt says the dividend imputation system should be retained, as shareholders in large companies often use their dividends to invest in smaller and more innovative businesses.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, KPMG AUSTRALIA PTY LTD, CORPORATE TAX ASSOCIATION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ