TAXATION – GOVERNMENT POLICY – AUSTRALIA

Boosted powers, travel ban plan to cut avoidance

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Original article by Emma Koehn
The Age – Page: 25 : 27-Nov-18

A recent Treasury discussion paper flagged measures aimed at those who avoid tax as part of a crackdown on the black economy. These include imposing overseas travel bans on persons with outstanding tax obligations, as well as giving the Australian Taxation Office the power to access telecommunications data and third-party information such as bank accounts. Submissions to Treasury concerning the discussion paper can be made until 21 December.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, BDO AUSTRALIA LIMITED

Labor’s franking policy would cost economy

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Original article by Michael Roddan
The Australian – Page: 4 : 22-Nov-18

Liberal MP Tim Wilson has warned that many retirees would lose up to a third of their income under Labor’s plan to abolish cash refunds for excess dividend imputation credits. Meanwhile, the Grattan Institute has noted in its submission to a parliamentary inquiry that there would be some cost to the economy if Labor’s policy is implemented. However, the think tank has concluded that the policy may be the best option.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, GRATTAN INSTITUTE

ALP’s tax hike would strangle economic growth

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Original article by Adam Creighton, Michael Roche
The Australian – Page: 1 & 2 : 14-Nov-18

Marcel Thieliant of Capital Economics expects Labor to win the next federal election, and he warns that the party’s proposed tax and regulatory reforms will result in slower economic growth over the next several years. The economist also expects growth in consumption to slow under a Labor government, while the Australian dollar could also fall sharply. Labor plans to increase taxes by $34bn over two years if it wins the election.

CORPORATES
CAPITAL ECONOMICS LIMITED, AUSTRALIAN LABOR PARTY, IFM INVESTORS PTY LTD

Bond investors like Labor’s franking cut

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Original article by John Kehoe
The Australian Financial Review – Page: 5 : 7-Nov-18

The Federal Opposition’s plan to abolish cash refunds for excess dividend imputation credits if it wins the next election has widespread support among bond fund managers. Elizabeth Moran of FIIG Securities says the dividend imputation system has prompted many investors to be highly exposed to risker asset classes; she notes that while bonds offer lower yields, they also offer less volatility. Australian Securitisation Forum CEO Chris Dalton agrees that Labor’s policy will make bonds more attractive to investors.

CORPORATES
AUSTRALIAN LABOR PARTY, FIIG SECURITIES LIMITED, AUSTRALIAN SECURITISATION FORUM, REALM INVESTMENT MANAGEMENT PTY LTD, AUSTRALIAN TAXATION OFFICE, ALTIUS ASSET MANAGEMENT PTY LTD, PLATO INVESTMENT MANAGEMENT LIMITED, AUSTRALIAN STOCK REPORT LIMITED, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

PRRT changes may hold up oil and gas projects

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Original article by Matt Chambers
The Australian – Page: 20 : 7-Nov-18

Macquarie Group expects Woodside Petroleum to be affected the most by the federal government’s changes to the petroleum resource rent tax’s uplift rate. Meanwhile, Saul Kavonic of Credit Suisse warns that the review of the PRRT’s transfer pricing rules is a greater material risk to the value of existing LNG plants than the increase in the uplift rate, due to the potential for any changes to be retrospective. Macquarie has also cautioned that the transfer pricing review – which is slated to take 12-18 months – could result in delays to oil and gas projects and impact on the sector’s future earnings.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. DEPT OF THE TREASURY, SANTOS LIMITED – ASX STO

Miners fear tax grab by Labor government

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 1-Nov-18

Gold Fields CEO Nick Holland has warned that the South Africa-based miner may reconsider future investment in Australia if a change of federal government results in an increase in the sector’s royalties and taxes. Gold Fields has a 50 per cent stake in the Gruyere gold project in Western Australia, while its other local assets include the St Ives, Granny Smith and Darlot gold mines. Meanwhile, Fortescue Metals Group CEO says mining companies need policy certainty to continue investing in Australia rather than offshore.

CORPORATES
GOLD FIELDS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLD ROAD RESOURCES LIMITED – ASX GOR

UK-style digital tax may hit local media

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Original article by Andrew White
The Australian – Page: 21 : 31-Oct-18

Britain’s proposed digital services tax is primarily aimed at US-based technology companies, but experts suggest that traditional Australian media companies and online classifieds groups could be hit if the federal government introduces a similar tax. News Corp Australia, Fairfax Media, Seek, Domain and Carsales.com are among the local companies that could potentially be affected by any move to impose a digital services tax. The government will shortly release a discussion paper on the issue.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, SEEK LIMITED – ASX SEK, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, CARSALES.COM LIMITED – ASX CAR, AUSTRALIA. DEPT OF THE TREASURY, GREAT BRITAIN. DEPT OF THE TREASURY, ERNST AND YOUNG, KPMG AUSTRALIA PTY LTD, WORLD TRADE ORGANIZATION

Labor flags flip on small biz tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 12-Oct-18

Federal Opposition Leader Bill Shorten has signalled that Labor remains open to backing legislation to bring forward tax cuts for small and medium enterprises. He says a prerequisite would be that there is no impact on government funding for hospitals and schools. The tax cuts for businesses with turnover of up to $50m have already been legislated, but the federal government wants to reduce the tax rate to 25 per cent in 2021-22 rather than 2026-27.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, CENTRE ALLIANCE, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA

Companies’ tax cuts on fast track

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Original article by Simon Benson
The Australian – Page: 1 & 2 : 11-Oct-18

The federal government intends to bring forward a reduction in the tax rate for small and medium enterprises. Prime Minister Scott Morrison is set to announce that the SME tax rate will be reduced to 26 per cent in 2020-21 and 25 per cent in 2021-22. The full tax cuts package for SMEs was originally slated to take effect in 2026-27. The government began looking into fast-tracking SME tax cuts under former prime minister Malcolm Turnbull, after it dropped plans to reduce the tax rate for large companies.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, BUSINESS COUNCIL OF AUSTRALIA, ENERGYAUSTRALIA PTY LTD, SEEK LIMITED – ASX SEK, INCITEC PIVOT LIMITED – ASX IPL

PM to sandbag seats with GST overhaul

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Original article by Andrew Burrell
The Australian – Page: 1 & 4 : 1-Oct-18

Prime Minister Scott Morrison is poised to announce plans for changes to the formula for distributing goods and services tax revenue. The legislation, which would provide the states and territories with an additional $7.2bn in funding, is expected to be put forward during the next session of Parliament. The changes will benefit Western Australia in particular, where the Liberal Party is in danger of losing up to five seats at the next federal election. The proposed changes will include the introduction of a GST floor of $0.70 in the dollar from 2022-23, which will increase to $0.75 in 2024-25.

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