TAXATION – GOVERNMENT POLICY – AUSTRALIA

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

Our company tax to top world

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Original article by David Uren
The Australian – Page: 1 & 4 : 9-Nov-17

The tax rate for large Australian companies has remained unchanged since 2000, when it was reduced to 30 per cent. However, the average company tax rate in advanced countries has fallen from 32 per cent to just 24 per cent over the last 17 years. The Treasury has warned that Australia’s ability to attract business investment will be adversely affected if the nation fails to respond to plans by the US to slash its company tax rate, while Australia will also face lower growth in GDP and real wages. Business Council of Australia CEO Jennifer Westacott has urged a reduction in the company tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY

$30bn boost for PM’s tax reform plan

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 8-Nov-17

A new report from the Treasury has concluded that the Federal Government’s proposed $A65bn corporate tax cuts proposal would result in a total tax revenue gain of about $A30bn. The research paper estimates that reducing the company tax rate from 30 per cent to 25 per cent will increase the size of the domestic economy by more than one per cent over the long-term. The report also notes that the average company tax rate among OECD nations has fallen to 24 per cent, compared with 32 per cent in 2000, and it warns that Australia could face a permanent reduction in both GDP and real wages if it fails to take similar action.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

PC report urges fed-state tax revamp

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 25-Oct-17

The Productivity Commission has released a report which notes that the federal government is responsible for raising 80 per cent of all tax revenue. The report, which is titled "Shifting the Dial", advocates giving the states greater power to raise revenue for the provision of government services instead of being so reliant on the federal government for funding. The report will be on the agenda when Treasurer Scott Morrison meets with his state and territory counterparts on 27 October.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY

Trump tax cut exposes local business

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 29-Sep-17

Business leaders have warned that the tax plan of US President Donald Trump highlights the need for tax reform to ensure that Australia remains internationally competitive. However, the Opposition has reiterated that it will not support the Federal Government’s proposal to progressively reduce the tax rate for all companies to 25 per cent, despite Trump’s plans to reduce the US company tax rate to just 20 per cent. Treasurer Scott Morrison says Australia will not be able to compete with nations such as the US and the UK unless Labor supports the tax package.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, NICK XENOPHON TEAM

Tax cuts won’t go to ‘bucket’ companies

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 19-Sep-17

Financial Services Minister Kelly O’Dwyer has confirmed that passive investment companies will not benefit from the reduced company tax rate of 27.5 per cent. The reduced rate applies to firms with turnover below $A50 million, but entities which generate more than 80 per cent of their income from passive assets such as share dividends will not qualify. Tax experts note that there will be both "winners and losers" from her decision, which comes after months of uncertainty over what types of companies would benefit from the tax cut.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND, AUSTRALIA. DEPT OF THE TREASURY, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED

Morrison puts $31bn price on Labor tax

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 31-Aug-17

Federal Treasurer Scott Morrison will use his annual Bloomberg address to highlight the economic impact of the Opposition’s tax policy. He will argue that the tax take would increase by $A31bn a year under a Labor government, as the tax-to-GDP ratio would rise to 25.7 per cent. The Coalition aims to maintain the tax-to-GDP ratio at 23.7 per cent. Morrison will also call for a greater focus on health and education as a key driver of growth in productivity.

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

Labor tax hike on trusts ‘risks hurting economy’

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Original article by Adam Creighton, Joe Kelly
The Australian – Page: 1 & 2 : 3-Aug-17

Former Commonwealth Bank chairman John Ralph says the Federal Opposition’s proposal to impose a tax rate of 30 per cent on the distributions of discretionar­y trusts appears to be aimed at increasing tax revenue. Ralph, who headed a business tax review in 1999, adds that taxing trusts at the same rate as companies could merely prompt growth in the use of alternative structures to reduce tax liability. He also says the measures – which Opposition Leader Bill Shorten claims are aimed at addressing the issue of inequality – will have an adverse effect on economic growth and Australia’s competitiveness.

CORPORATES
AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN TAXATION OFFICE, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, INTERNATIONAL MONETARY FUND, AUSTRALIA. FAIR WORK COMMISSION

Tax leak as tradies borrow Bunnings ABN

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Original article by Nick Tabakoff, Amos Aikman
The Australian – Page: 1 & 8 : 2-Aug-17

Paul Drum of CPA Australia has called for major changes to the Australian Business Number system, arguing that it is being widely rorted. He says businesses are abusing the tax system by creating multiple ABNs or using incorrect ones. The chairman of the Federal Government’s black economy taskforce, Michael Andrew, adds that 3.5 million ABNs have been issued to companies or individuals that have not lodged a single tax statement or tax return. The push for reform comes amid revelations that many tradespeople are exploiting the tax system by issuing invoices that quote the ABN of hardware giant Bunnings.

CORPORATES
CPA AUSTRALIA, BUNNINGS GROUP LIMITED