Original article by Geoff Chambers, Greg Brown, Patrick Commins
The Australian – Page: 1 & 4 : 27-May-21
Labor is finalising the tax policy that it will take to the next election, and there are indications that it may support the federal government’s stage-three tax cuts. Labor’s caucus is divided over the issue of the tax cuts, which will benefit high-income earners in particular; however, there is growing support for the tax cuts among senior Labor MPs, who are concerned about a potential voter backlash at the next election over any changes to a tax package that has already been legislated. Labor is not expected to retain the government’s Low and Middle Income Tax Offset, which was intended to be temporary.
AUSTRALIAN LABOR PARTY
Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 13-May-21
Treasurer Josh Frydenberg has defended the decision to extend the low and middle income tax offset for another year in the May 2021 Budget. He argues that the tax offset will support aggregate demand and job creation, while he has not ruled out extending it again if circumstances warrant such a move. However, Frydenberg contends that the tax offset was never intended to be permanent and must end before the legislated stage-three income tax cuts take effect in 2024. Labor has not yet committed to supporting the tax cuts, which will benefit people on high incomes in particular.
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY
Original article by Joe Kelly
The Australian – Page: 2 : 26-Apr-21
The third stage of the federal government’s income tax cuts package is slated to take effect from 1 July 2024. Business Council of Australia CEO Jennifer Westacott says the government should consider bringing forward the tax cuts in order to boost the economy and create jobs in the wake of the COVID-19 pandemic. However, Australian Council of Social Service CEO Cassandra Goldie recently called for the third-stage tax cuts to be dropped, arguing that they will benefit people on high incomes the most.
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE
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.
INTERNATIONAL MONETARY FUND
Original article by Greg Brown
The Weekend Australian – Page: 1 & 7 : 10-Oct-20
The omnibus bill containing the federal Budget’s key tax measures was passed by both houses of Parliament on 9 October. The stage-two income tax cuts are expected to begin flowing through to workers’ take-home pay in November, after the Australian Taxation Office adjusts its withholding tax schedules. The omnibus bill also provides tax relief for corporate Australia, including a business investment allowance, a loss carry-back scheme and changes to the fringe benefits tax regime that will benefit small businesses.
AUSTRALIAN TAXATION OFFICE
Original article by Killian Plastow
The New Daily – Page: Online : 28-Sep-20
The federal government has flagged bringing forward tax cuts planned for 2024-25 when it hands down the budget on 6 October. There have been claims that doing so would increase inequality in Australia, but Chris Richardson from Deloitte Access Economics contends that the tax cuts are "fair". However, he suggests that while the tax cuts will help to stimulate the economy, other measures such as spending on infrastructure or social housing could be more effective, as the cuts will generally benefit high-income earners who are more likely to save the extra money than spend it.
DELOITTE TOUCHE TOHMATSU LIMITED
Original article by Geoff Chambers
The Australian – Page: 4 : 24-Aug-20
The Australian Industry Group has urged the federal government to pursue major changes to the nation’s tax system. The employers’ group says long-term tax reform measures should include an overhaul of the goods and services tax, the abolition of mining royalties and replacing fuel excise with road-user charges. It has also called for scheduled personal income tax cuts to be brought forward and business income tax relief to be extended. The AiGroup also wants the migrant cap to be increased, with priority given to skilled migrants.
THE AUSTRALIAN INDUSTRY GROUP
Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 27-Jul-20
New South Wales Treasurer Dominic Perrottet has been leading a push for tax reform, including the goods and services tax, payroll tax and stamp duties. The federal government wants its NSW counterpart to outline clear proposals for tax reform, amid doubts as to whether Perrottet has much support within the state government for his proposals. Prime Minister Scott Morrison has previously stated that the federal government will not consider tax reform proposals unless there is agreement among the states, while Federal Liberal MP Jason Falinski contends that the worst taxes are state-based and can be changed without any involvement at federal level.
NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET
Original article by Rosie Lewis, Joe Kelly
The Australian – Page: 1 & 4 : 15-Jul-20
The Australian Chamber of Commerce & Industry has used its pre-budget submission to call for comprehensive tax reform, including bringing forward legislated personal income tax cuts. The ACCI also advocates a gradual reduction in the JobSeeker allowance to pre-coronavirus levels, while it says the domestic economy will be vulnerable to further shocks for several years due to the impact of COVID-19. Meanwhile, a Menzies Research Centre paper argues that all of the national cabinet’s decisions on coronavirus lockdowns measures should be subject to a cost-benefit analysis. The report by economists Henry Ergas and Joe Branigan was written before the new virus outbreaks in Melbourne and Sydney.
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE MENZIES RESEARCH CENTRE LIMITED
Original article by Greg Brown
The Australian – Page: 1 & 2 : 10-Jul-20
ACTU secretary Sally McManus has urged the federal government to extend the JobKeeper wage subsidy scheme for an additional six months. It is slated to end in late September, but McManus says the union movement will not support an extension of temporary changes to workplace laws unless the scheme is extended for all eligible workers. McManus also opposes bringing forward personal income tax cuts, arguing that it will lead to less money being spent on essential services. She adds that company tax cuts should not be considered until tax loopholes and rorts have been addressed.