TAXATION – GOVERNMENT POLICY – AUSTRALIA

Reform taxes to help economy recover, IMF tells Australia

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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.

CORPORATES
INTERNATIONAL MONETARY FUND

Cash to go: the tax cuts start to flow

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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.

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AUSTRALIAN TAXATION OFFICE

Bringing forward tax cuts in federal budget fair, but not very effective: Deloitte

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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.

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DELOITTE TOUCHE TOHMATSU LIMITED

Migration, tax reform key to revival

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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.

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THE AUSTRALIAN INDUSTRY GROUP

Tax reform pushed onto the states

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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.

CORPORATES
NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Business in push to fast-track tax cuts

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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.

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AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE MENZIES RESEARCH CENTRE LIMITED

ACTU boss opposes tax cut for workers

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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.

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ACTU

Australia among highest corporate tax collectors: OECD

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Original article by Matthew Cranston, Tom McIlroy
The Australian Financial Review – Page: 7 : 9-Jul-20

A report from the Organisation for Economic Co-operation & Development shows that corporate tax accounted for about 5.5 per cent of Australia’s GDP in 2017. This compares with an average of three per cent across all OECD member nations. The US and the Bahamas are among 15 jurisdictions whose corporate tax rates comprise less than two per cent of GDP. Treasurer Josh Frydenberg contends that Australia’s lower value add tax is a key reason for the nation’s personal and corporate income tax rates being higher than the OECD average.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY

Twenty years on, burning platform is here for GST reform: Ken Henry

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 36 : 29-Jun-20

Former Treasury secretary Ken Henry has called for an overhaul of Australia’s tax system in response to the coronavirus-induced recession. Henry was a top tax adviser to the Howard government when it introduced the goods and services tax. Former federal treasurer Peter Costello says Australia’s tax system has become increasingly complex since the GST was introduced two decades ago, arguing that it needs to be simplified. He concedes that the GST base should have been broader with fewer exemptions; however, he is cautious about expanding it now, arguing that ‘populist politics’ in the Senate could result in even more exemptions than at present.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Cut tax to spark mining boom

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Original article by Geoff Chambers
The Australian – Page: 1 & 5 : 25-May-20

The Minerals Council of Australia has urged the federal government to reduce the company tax rate as part of its post-coronavirus economic strategy. MCA CEO Tania Constable says the nation’s corporate tax rate is not internationally competitive, and measures such as tax reform and speeding up project approvals could prompt a new wave of resources projects worth around $100bn. Master Builders Australia has in turn called for a $13.2bn stimulus package for the construction industry. Prime Minister Scott Morrison will deliver an economic recovery speech on 26 May.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET