TAXATION – GOVERNMENT POLICY – AUSTRALIA

Senate support to fast-track small biz cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 7-Aug-18

The Federal Government will seek to pass its full company tax cuts package in the Senate when parliament resumes in mid-August. The support of One Nation and Centre Alliance senators will be crucial, although they are still unwilling to endorse the full package. However, both minor parties have signalled that they would most likely support any proposal to bring forward tax cuts for businesses with turnover of less than $50m. The tax cuts are slated to take effect in 2026-27, but Centre Alliance senator Stirling Griff says he would be open to reducing the tax rate for these businesses to 25 per cent immediately.

CORPORATES
ONE NATION PARTY, CENTRE ALLIANCE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY

Deloitte claims tax cuts are unaffordable

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Original article by Ben Potter
The Australian Financial Review – Page: 9 : 23-Jul-18

Deloitte Access Economics’ June Business Outlook contends that the Budget is not yet healthy enough for the federal government to commit to long-term tax cuts. Shadow treasurer Chris Bowen claims that Deloitte’s comments are an indictment of the government’s tax plans, which he contends will increase the prospect that more cuts to health and education will be needed over the next 10 years. Deloitte notes that a slump in property and a decline in the Chinese economy could bring about an end to the current revenue surge that the Budget is enjoying.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Coalition mulls new company tax options

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 19-Jul-18

The Federal Government remains hopeful of gaining the support of One Nation and Centre Alliance for its full corporate tax cuts package when parliament resumes in August. The two minor parties have a combined four seats in the Senate, which would be sufficient for the tax bill to be passed. However, the Government may consider bringing forward tax cuts that have already been legislated if its full tax package is rejected by the Senate.

CORPORATES
ONE NATION PARTY, CENTRE ALLIANCE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, BUSINESS SA, COOPERS BREWERY LIMITED, THOMAS FOODS INTERNATIONAL

Labor two-tier tax system is too complex

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 3-Jul-18

Tax experts have expressed concern about the complexity of the company tax regime if Labor wins the next federal election and retains the current tax rate of 27.5 per cent for businesses with turnover of $10m to $50m. Opposition Leader Bill Shorten was recently forced to back down on his proposal to reverse company tax cuts that have already been legislated. However, Grant Wardell-Johnson of KPMG says a two-tiered company tax system is not economically justifiable and will deter foreign direct investment in Australia.

CORPORATES
AUSTRALIAN LABOR PARTY, KPMG AUSTRALIA PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Divided Labor to test Shorten

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Original article by Ben Packham
The Australian – Page: 1 & 6 : 29-Jun-18

Some members of the shadow cabinet are expected to urge Opposition Leader Bill Shorten to back down on his plan to reverse company tax cuts at a meeting on 29 June, amid a growing internal rift over the issue. Meanwhile, Finance Minister Mathias Cormann has advised that the Federal Government will not pursue its full company tax cuts package in the Senate until after the five upcoming by-elections, which he says will be a referendum on Shorten’s tax policy. Shorten in turn has accused the Coalition of having a secret deal with One Nation to pass the tax package after the by-elections.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

$1bn increase in company tax take boosts the case for reform

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Original article by Adam Creighton
The Australian – Page: 6 : 28-Jun-18

The Federal Government has released data showing that company tax revenue for 2017-18 will be $A1.1bn higher than had been forecast in its May 2018 Budget. Finance Minister Mathias Cormann has also advised that company tax revenue for 2017-18 is expected to be $A9.2bn higher than the $A78.6bn that the government had forecast in its Budget update in late 2016. Cormann also revealed that a crackdown on tax avoidance has resulted in the recovery of $A2.7bn in unpaid taxes from multinationals.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN LABOR PARTY

Pressure on Shorten to fix tax split

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Original article by Simon Benson, Ben Packham
The Australian – Page: 1 & 6 : 28-Jun-18

Dissent within Labor is continuing over plans to reverse tax cuts for companies with annual turnover of between $A10m and $A50m if Labor wins the next election. Labor’s leadership group is expected to endorse the policy at a meeting on 28 June, despite some Labor MPs expressing concern that Opposition Leader Bill Shorten announced the policy without consulting the shadow cabinet or caucus. The Federal Government remains hopeful of gaining the support of Senate crossbenchers for its full company tax cuts package.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, REACHTEL PTY LTD

Shorten’s $20bn tax clawback

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Original article by Simon Benson, Ben Packham
The Australian – Page: 1 & 6 : 27-Jun-18

Opposition Leader Bill Shorten has confirmed that Labor will reverse tax cuts for businesses with turnover of $A10m to $A50m if it wins the next federal election. A cut tax for firms with turnover of $A25m to $A50m is scheduled to take effect on 1 July. Shorten has indicated that Labor could also repeal previously legislated tax cuts for businesses with turnover of $A2m to $A10m. Employers’ groups have warned that Labor’s stance will create uncertainty for businesses, while some Labor MPs say Shorten did not consult shadow cabinet or caucus before announcing the policy.

CORPORATES
AUSTRALIAN LABOR PARTY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Class warfare digs won’t work: Coalition

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Original article by Tom McIlroy
The Australian Financial Review – Page: 6 : 26-Jun-18

Prime Minister Malcolm Turnbull claims that Labor is attacking him because he is wealthy and successful. Labor will run commercials which contend that Turnbull will benefit from the federal government’s plans to reduce the company tax rate because of the large number of companies in which he has investments. Deputy Prime Minister Michael McCormack has accused Labor of engaging in class warfare, while Labor’ finance spokesman Jim Chalmers has accused Turnbull of siding with millionaires.

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

MPs risk jobs with tax block

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Original article by Simon Benson
The Australian – Page: 1 & 7 : 26-Jun-18

BHP Billiton CEO Andrew Mackenzie and Fortescue Metals Group CEO Elizabeth Gaines are among the business leaders who have urged the Senate to pass the Federal Government’s company tax cuts package. Mackenzie says the lack of a globally competitive tax rate could prompt BHP to redirect up to $A32bn worth of investment to other countries. One Nation leader Pauline Hanson in particular has been targeted over her stance on the tax cuts, with beef processor JBL stressing that it employs 6,500 people in her home state of Queensland.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ONE NATION PARTY, JBL, CENTRE ALLIANCE, THOMAS FOODS INTERNATIONAL, AUSTRALIAN LABOR PARTY, UNITED AUSTRALIA PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET