TAXATION – GOVERNMENT POLICY – AUSTRALIA

Game of chicken on tax cuts

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

A meeting of Labor MPs on 19 June is expected to endorse the first stage of the Federal Government’s personal income tax cuts package. However, Labor’s continued opposition to the rest of the tax package means the Government will require the support of One Nation and Centre Alliance to pass the full tax cuts in the Senate. Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have again ruled out splitting the tax bill to enable the first stage of the tax cuts to proceed on 1 July.

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

Hanson last barrier to full tax cuts

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Original article by Andrew Tillett
The Australian Financial Review – Page: 1 & 4 : 18-Jun-18

Five of the Senate crossbenchers will support all three stages of the federal government’s income tax cuts package, while the two Centre Alliance senators will back the first two stages and are open to negotiation on the third. The stance of One Nation’s two remaining senators is likely to be crucial, given that the government requires the support of eight crossbenchers. Finance Minister Mathias Cormann says the government will not split the bill.

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

$10bn hole in Shorten’s retirees plan

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

Modelling by the Treasury has found that Labor’s proposal to scrap franking credit refunds would prompt individuals and self-managed superannuation funds to redirect their investment portfolios away from franked shares that pay dividends. This in turn would reduce the savings generated by the measure by nearly $A10bn over 10 years. Labor had estimated that the policy would save $A55.7bn over a decade, but the modelling suggests that the figure would be just $A45.8bn. Labor has already been forced to scale back its initial savings estimate of $A59bn.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

One Nation rebel fires parting shot

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Original article by Rachel Baxendale
The Australian – Page: 2 : 15-Jun-18

One Nation has lost the balance of power in the Senate following senator Brian Burston’s decision to quit the party and become an independent. He says the falling out over One Nation’s stance on the Federal Government’s corporate tax package contributed to his departure from the party, which will now hold just two seats in the upper house. Burston will continue to support the tax package, and he hopes One Nation’s remaining senators Pauline Hanson and Peter Georgiou will do so as well. The tax package requires the support of eight of the 10 crossbenchers.

CORPORATES
ONE NATION PARTY, AUSTRALIA. DEPT OF FINANCE

RBA boss backs income tax cuts

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 14-Jun-18

Reserve Bank governor Philip Lowe says the Federal Government’s personal income tax cuts package will contribute to growth in wages. Lowe describes the proposed tax cuts as an "incremental step" in the broader process of tax reform. He has also called for wages to be progressively increased as the economy strengthens, arguing that wages of growth of around three per cent annually is feasible in the longer-term, compared with growth of around two per cent at present. Labor has only committed to supporting the first stage of the tax cuts package.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Subs blowout could scuttle tax cuts

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 12-Jun-18

Centre Alliance senator Rex Patrick has sought to link his support for the Federal Government’s company tax cuts package to the construction of a new submarine fleet. Patrick has expressed concern about the cost of the 12 submarines and warned that he cannot support the tax package until the full cost of the new fleet is disclosed. The Senate budget estimates committee was recently told that it will cost about $A50bn to build the submarines, but Patrick estimates that they could cost taxpayers around $A200bn in total during their operational life.

CORPORATES
CENTRE ALLIANCE, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, NAVAL GROUP

Treasury overstated cost of tax cuts

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Original article by Adam Creighton
The Australian – Page: 2 : 8-Jun-18

Australian Taxpayers Alliance director John Humphreys estimates that the Federal Government’s income tax cuts will cost about $A78bn over 10 years, compared with Treasury’s forecast of $A144bn. The government estimates that the third stage of the tax package will cost $41.6bn, but Humphreys’ analysis suggests that it will cost just $A3.5bn. Humphreys and other experts argue that Treasury’s forecasts do not take into account the fact that more people are likely to enter the workforce or increase the number of hours they work as a result of the tax cuts.

CORPORATES
AUSTRALIAN TAXPAYERS’ ALLIANCE PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF NEW SOUTH WALES, AUSTRALIAN LABOR PARTY, UNIVERSITY OF QUEENSLAND, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Labor ridiculed for throwing gender bias into tax battle

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 7-Jun-18

Shadow treasurer Chris Bowen has revealed that the Parliamentary Budget Office has undertaken an analysis of the gender impact of the Federal Government’s income tax cuts package on behalf of the Opposition. Bowen says the modelling shows that men will benefit the most from the third phase of the tax cuts. Treasurer Scott Morrison has responded by arguing that the income tax system is gender-neutral, a view shared by business leader Tony Shepherd. Small Business Ombudsman Kate Carnell says it is inappropriate to address the gender pay gap via the tax system.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, NRMA LIMITED

Burston to vote for full income tax cut package

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 7-Jun-18

The Federal Government still requires the support of eight out of the 10 crossbenchers to pass its income tax cuts package in the Senate. One Nation senator Brian Burston has indicated that he intends to support the entire tax package, despite party leader Pauline Hanson having committed to supporting only the first two stages of the tax package. Labor will also support the first two stages of the package, but Treasurer Scott Morrison has ruled out legislating the third stage separately.

CORPORATES
ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Former US official warns on digital tax

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Original article by Nassim Khadem
The Age – Page: 23 : 5-Jun-18

The federal government is examining ways of taxing the billions in advertising revenue that digital companies Google and Facebook are generating. One option under consideration is a three per cent tax on turnover. Bob Stack, who was previously an official with the US Treasury under the administration of Barack Obama, does not think such a tax is a good idea. He says it could result in double taxation and might spark retaliation from the US government, which could increase taxes on Australian companies.

CORPORATES
GOOGLE INCORPORATED, FACEBOOK INCORPORATED, DELOITTE LLP, UNITED STATES. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, APPLE INCORPORATED, AMAZON.COM INCORPORATED, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT