TAXATION – GOVERNMENT POLICY – AUSTRALIA

Trump tax cuts lift world economy

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Original article by Ben Packham
The Australian – Page: 1 & 2 : 23-Jan-18

The International Monetary Fund forecasts that the global economy will grow by 3.9 per cent in 2018 and at a similar pace in 2019. The global economy grew by 3.7 per cent in 2017. The IMF has also used its latest world economic outlook report to upgrade its forecast for US economic growth in 2018 by 0.4 per cent, to 2.7 per cent, citing the likely impact of the Trump administration’s company tax reforms. Treasurer Scott Morrison says the IMF’s forecasts emphasise the need for Australia’s company tax rate to be reduced to ensure that the nation remains internationally competitive.

CORPORATES
INTERNATIONAL MONETARY FUND, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH

Cut tax to create jobs: CEOs

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Original article by Joanna Mather, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 22-Jan-18

Walmart is among the US companies that are increasing their wage rates in response to the Trump administration’s tax reforms. Federal Treasurer Scott Morrison says Australian now needs to "catch" up to the US with regard to tax reform, noting that Labor’s opposition to the Government’s company tax package means the nation has missed the opportunity to take the lead on tax reform. Meanwhile, Qantas CEO Alan Joyce and MYOB CEO Tim Reed are among the business leaders who have emphasised the economic benefits of reducing the corporate tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, WAL-MART STORES INCORPORATED, QANTAS AIRWAYS LIMITED – ASX QAN, MYOB GROUP LIMITED – ASX MYO, XERO LIMITED – ASX XRO, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, APPLE INCORPORATED, AMP LIMITED – ASX AMP, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Wesfarmers: Tax cut spurs wages growth

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Original article by Joanna Mather, Brad Thompson, Andrew Tillett
The Australian Financial Review – Page: 1 & 8 : 15-Jan-18

A number of US companies have announced plans to increase minimum pay rates or provide bonuses to staff in response to the Trump administration’s company tax cuts. The Australian Government will reintroduce its across-the-board company tax cuts package when parliament resumes in February, and Revenue Minister Kelly O’Dwyer has stressed the need for the nation’s tax regime to remain competitive. Wesfarmers CEO Rob Scott and the Group of 100’s Australian president Andrew Porter argue that company tax cuts could boost local wages.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, WESFARMERS LIMITED – ASX WES, GROUP OF 100 INCORPORATED, WAL-MART STORES INCORPORATED, FIAT CHRYSLER AUTOMOBILES NV, AMERICAN AIRLINES INCORPORATED, AT&T CORPORATION, BANK OF AMERICA CORPORATION, WELLS FARGO BANK, REPUBLICAN PARTY (UNITED STATES), COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI

Reworked tax package to include personal cut

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Original article by David Uren
The Australian – Page: 2 : 12-Jan-18

The Australian Labor will again vote against a bill to reduce the tax rate for all companies if it is reintroduced to the Senate. Shadow treasurer Chris Bowen argues that there are greater priorities for the Budget. Financial Services Minister Kelly O’Dwyer has urged Labor to support the legislation, which will return to the Senate when parliament resumes in February. There is speculation that both company and personal income tax cuts will feature in the May 2018 Budget if the upper house rejects the legislation again.

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

Company tax cuts benefit all: OECD

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Original article by David Uren
The Australian – Page: 1 & 2 : 11-Jan-18

Treasurer Scott Morrison has signalled that company tax cuts will be a legislative priority for the Federal Government when parliament resumes in February. Labor, the Greens and Senate cross-benchers have previously opposed the Government’s push to provide tax relief for companies with turnover of more than $A50m. Meanwhile, a new study by the OECD has concluded that across-the-board corporate tax cuts result in increased business investment and "substantial" income gains for all wage and salary earners.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION LIMITED, NICK XENOPHON TEAM, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Slash tax or lose investors

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 21-Dec-17

A new analysis by the Treasury notes that since 2001 Australia has failed to respond to the global trend to reduce corporate tax rates. The Treasury briefing also cautions that Australian wages, investment, economic growth and the federal Budget will be adversely affected if federal parliament fails to reduce the company tax rate. The release of the Treasury analysis has coincided with the passage through both houses of Congress of US President Donald Trump’s tax package.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, REPUBLICAN PARTY (UNITED STATES), INTERNATIONAL MONETARY FUND, AUSTRALIAN LABOR PARTY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

I’ve revived economy: Turnbull

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 4 : 12-Dec-17

Prime Minister Malcolm Turnbull say he hopes to have all of the states and territories signed up to the national energy guarantee by the middle of 2018. Turnbull also says that 2018 will see his government focus on the economy, including trying to get parliament to approve the rest of its corporate tax reduction program, as well as looking at the possibility of income tax cuts. He expects that there will be more to come concerning the scandal involving Labor’s Sam Dastyari.

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

Trump’s tax cut puts heat on Labor

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Original article by Andrew White, Cameron Stewart
The Australian – Page: 1 & 4 : 4-Dec-17

Australian business leaders have warned that jobs and investment will be at risk unless proposed changes to the corporate tax regime are implemented. Business Council of Australia CEO Jennifer Westacott says the US will attract more capital at the expense of Australia after the US Senate passed the tax package of President Donald Trump. The US corporate tax rate will be slashed from 35 per cent to around 20 per cent, prompting business groups to urge the Australian Labor Party and crossbenchers to support the proposal for an across-the-board reduction in Australia’s company tax rate to 25 per cent.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, PRICEWATERHOUSECOOPERS, UNIVERSITY OF SYDNEY. UNITED STATES STUDIES CENTRE, AUSTRALIA. DEPT OF THE TREASURY, REPUBLICAN PARTY (UNITED STATES)

Malcolm Turnbull flags tax cuts for low, middle-income earners

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Original article by Phillip Coorey
The Australian Financial Review – Page: Online : 21-Nov-17

Prime Minister Malcolm Turnbull canvassed the prospect of tax cuts for those on low and middle incomes during a speech to the Business Council of Australia on 20 November. However, he said any cuts did not mean the government was abandoning its commitment to return the budget to surplus, nor would they come at the expense of the remaining reductions to company tax that the government is still trying to get approved.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, DELOITTE ACCESS ECONOMICS PTY LTD

Tax cuts will unleash investment

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Original article by Andrew Tillett
The Australian Financial Review – Page: 1 & 7 : 20-Nov-17

Just over 80 per cent of companies taking part in a Business Council of Australia survey say they would increase investment if the corporate tax rate was cut to 25 per cent. Just under 75 per cent stated they felt a reduction in the tax rate would make them more competitive globally, while 70 per cent stated they would hire more staff. Prime Minister Malcolm Turnbull says the results of the survey shows the federal government’s plan to cut company tax is the correct one.

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