TAXATION – GOVERNMENT POLICY – AUSTRALIA

Labor plan: spend and tax to bigger surpluses

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 3-May-18

The Australian Labor Party will raise at least $A160bn in additional revenue over 10 years if it wins the next federal election. This would be boosted by $A35bn if Labor revoked company tax cuts that have yet to be legislated. Labor argues that the additional revenue would allow it to achieve a Budget surplus while increasing government spending in sectors such as health and education. Finance Minister Mathias Cormann has warned that Labor’s tax plan will have an adverse impact on jobs and investment.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY

Company tax cuts lift jobs growth

roymorgansocial Leave a comment

Original article by Adam Creighton
The Australian – Page: 1 & 4 : 3-May-18

Small Business Council of Australia CEO Peter Strong says an analysis of data on the impact of tax cuts for businesses with turnover of up to $A2m strengthens the case for across-the-board corporate tax relief. The analysis by AlphaBeta shows that 19 per cent of businesses that received the tax cut in 2015 had hired additional staff in the following two years, while three per cent increased their employees’ wages. Companies that received the tax cut also created jobs at a faster pace than companies that were just above the turnover threshold.

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, ALPHABETA, XERO LIMITED – ASX XRO, BUSINESS COUNCIL OF AUSTRALIA, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Labor sticks to high tax strategy

roymorgansocial Leave a comment

Original article by Jacob Greber, Tom McIlroy, David Marin-Guzman
The Australian Financial Review – Page: 1 & 6 : 27-Apr-18

Labor intends to retain its policy of increasing the highest marginal tax rate by two per cent to 49 per cent, which it announced in 2017 after the Federal Government opted not to extend the temporary deficit levy. Shadow treasurer Chris Bowen says the Opposition is still of the view that it is inappropriate to limit tax relief to people on high incomes. Treasurer Scott Morrison says increasing the tax burden on high income-earners and business owners could impact on economic growth and the labour market.

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

We’re sticking to full tax cut plan: Morrison

roymorgansocial Leave a comment

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

Treasurer Scott Morrison has ruled out seeking a deal with crossbench senator Derryn Hinch to secure passage of its corporate tax package. Hinch has indicated that he may be open to supporting tax cuts for companies with turnover of up to $A500m, but Morrison has stressed that the Federal Government will persist with its policy of progressively reducing the tax rate for all companies. Meanwhile, Morrison says the May 2018 Budget will be "responsible", and he has rejected suggestions by National Party leader Michael McCormack that it will include some "goodies" for taxpayers.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, COMMONWEALTH HEADS OF GOVERNMENT MEETING, AUSTRALIA. DEPT OF FINANCE

Any reforms of tax is better than none: BCA

roymorgansocial Leave a comment

Original article by Tom McIlroy
The Australian Financial Review – Page: 11 : 12-Apr-18

The Federal Government still needs the support of crossbench senator Tim Storer for its corporate tax package. Storer has called for a broader range of tax reforms rather than simply reducing the tax rate for all companies. However, the Business Council of Australia has used a submission to a Senate inquiry to argue that changes to the company tax rate should not be stalled, as broader reforms will take too long to achieve. Storer has hired journalist Jim Middleton as a senior adviser.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, VICTORIA UNIVERSITY, THE AUSTRALIA INSTITUTE LIMITED

ALP links: 189-vote senator blocks $36bn tax cuts

roymorgansocial Leave a comment

Original article by Michael Owen, Ben Packham
The Australian – Page: 1 & 4 : 29-Mar-18

The Federal Government still hopes to secure the two Senate votes that are required to pass its corporate tax cuts package. The Government is continuing to negotiate with Derryn Hinch, but fellow crossbencher Tim Storer says he cannot support the bill in its current form. He argues that the forgone revenue from the company tax cuts should instead be used to finance social and economic programs. Storer gained just 189 votes as a Nick Xenophon Team candidate at the 2016 election, and he was elevated to the Senate after Skye Kakoschke-Moore was ruled ineligible due to dual citizenship. He had resigned from the Australian Labor Party in 2015.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, AUSTRALIAN REPUBLICAN MOVEMENT

Company tax cut delayed by two holdout senators

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Mar-18

The Federal Government will put its corporate tax cuts package on hold until May after failing to secure the support of Senate crossbenchers Derryn Hinch and Tim Storer. The Government had gained the support of seven crossbenchers and had hoped to pass the legislation before Easter. Meanwhile, the Business Council of Australia has launched a cross-platform campaign in support of the proposed company tax cuts, while Prime Minister Malcolm Turnbull has called upon the business sector to lobby crossbenchers to back the tax cuts.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Crossbenchers get green light to horsetrade on tax

roymorgansocial Leave a comment

Original article by Ben Packham, Victoria Laurie
The Australian – Page: 1 & 4 : 26-Mar-18

A report by international tax experts Jack Mintz and Philip Bazel notes that Australia’s company tax rate is currently the fourth-highest among OECD member nations. However, they warn that Australia will be ranked second within two years unless the tax rate is reduced, while the nation risks losing global capital inflows. Finance Minister Mathias Cormann says the Federal Government is open to compromises with crossbench senators Derryn Hinch and Tim Storer in return for their support for the company tax cuts bill.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNIVERSITY OF CALGARY, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY

Turnbull on the verge of tax victory

roymorgansocial Leave a comment

Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 6 : 23-Mar-18

One Nation has agreed to back the Federal Government’s company tax cuts package in return for a commitment to a pilot program for taxpayer-subsidised apprenticeships. The Government still requires the support of independent senators Tim Storer and Derryn Hinch, with the latter advising that he will back the tax package provided that it does not apply to the four major banks. Liberal Democrat David Leyonhjelm has vowed to withdraw his support for the tax cuts if the Government agrees to Hinch’s demands. Meanwhile, Labor has signalled that it may seek to reverse any reduction in the tax rate for larger companies if it wins the next election.

CORPORATES
ONE NATION PARTY, LIBERAL DEMOCRATIC PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, NATIONAL PARTY OF AUSTRALIA, ACTU

Tax cut will lift wages: CEOs’ push

roymorgansocial Leave a comment

Original article by Ben Packham
The Australian – Page: 1 & 4 : 22-Mar-18

Ten of the nation’s largest companies have committed to increasing their investment in Australia if the Federal Government progressively reduces the corporate tax rate from 30 per cent to 25 per cent. They argue that increased investment will in turn result in the creation of more jobs and ultimately boost wages. Meanwhile, independent senator Steve Martin has agreed to support the Enterprise Tax Plan Bill, although fellow independent Tim Storer has yet to decide his position. The Government requires the support of nine Senate crossbenchers.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, ENERGYAUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORIGIN ENERGY LIMITED – ASX ORG, MYOB GROUP LIMITED – ASX MYO, JBS AUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF FINANCE, ONE NATION PARTY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY