TAXATION – GOVERNMENT POLICY – AUSTRALIA

Labor’s trust policy misses the rich

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 2-Aug-17

Tax experts have questioned the likely effectiveness of the Federal Opposition’s proposed tax crackdown on family discretionary trusts in targeting wealthy Australians. Chapman Eastway CEO Sean Cortis says taxing family trusts at the same rate as companies would primarily affect people with investable assets of less than $A5m, rather than the "mega rich". The reforms are aimed at curbing the practice of income-splitting, but tax experts say wealthy families are more likely to "warehouse" money in a company within a family trust.

CORPORATES
AUSTRALIAN LABOR PARTY, CHAPMAN EASTWAY, BDO AUSTRALIA LIMITED, GRIFFITH UNIVERSITY. GRIFFITH BUSINESS SCHOOL

‘No quick fix’ in tax plan for family trusts

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 27-Jul-17

There is speculation that Opposition Leader Bill Shorten will propose subjecting family trusts to the same tax regime as companies. However, Bob Deutsch of the Tax Institute has questioned the merits of such a strategy, arguing that the dividend imputation system means that some beneficiaries of a trust would entitled to a full refund of the taxes paid. The recommendations of the Ralph Review of Business Taxation in 1999 included taxing trusts in the same way as companies.

CORPORATES
AUSTRALIAN LABOR PARTY, THE TAX INSTITUTE, KPMG AUSTRALIA PTY LTD, GREENWOODS AND HERBERT SMITH FREEHILLS PTY LTD

Tax blitz on lawyers, accountants

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Original article by Duncan Hughes, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 14-Jul-17

The Australian Government’s taskforce on the black economy is slated to release its final recommendations in October 2017. The head of the taskforce, Michael Andrew, has proposed greater scrutiny of lawyers and accountants as part of the effort to combat the cash economy, which is estimated to be worth around $A30bn. The taskforce has examined a number of options for addressing the issue, including a ban on cash transactions exceeding $A10,000, providing incentives for companies to shift to non-cash business models and offering an amnesty for cash-only businesses that transition to electronic payments.

CORPORATES
AUSTRALIAN TAXATION OFFICE, KPMG AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED, AUSTRALIA. DEPT OF FINANCE, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, THE TAX INSTITUTE, NATIONAL PRESS CLUB (AUSTRALIA)

Reform or fail: BHP’s Nasser

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Original article by Matt Chambers
The Australian – Page: 1 & 4 : 30-Jun-17

BHP Billiton chairman Jac Nasser has told the Competitive Advantage Forum that Australia needs bipartisan political support for reform in areas such as taxation, energy policy and education. He warned that Australia is approaching a "tipping point" and without strong leadership on key issues it risks ceasing to be a "great country" socially and economically. Amongst other things, Nasser says a national policy on energy security is required, while he has criticised proposals for bank levies by the federal and South Australian governments. Nasser will step down as chairman of BHP in August.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, FORD MOTOR COMPANY

Online GST reprieve till next year

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Original article by Rachel Baxendale
The Australian – Page: 5 : 20-Jun-17

The application of the goods and services tax to imported goods that cost less than $A1,000 has been delayed by 12 months, and will now take effect as from 1 July 2018. The measure has been welcomed by Australian retailers such as Harvey Norman, but slammed by online retail providers such as EBay and Amazon, which have threatened to prevent Australian consumers from using their portals if they were compelled to collect the GST.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, EBAY INCORPORATED, AMAZON.COM INCORPORATED, ETSY INCORPORATED, ALIBABA.COM CORPORATION, DHL CORPORATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. PRODUCTIVITY COMMISSION

Good timing, as Morrison tips tax cuts in 2018

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Original article by Jacob Greber, Laura Tingle
The Australian Financial Review – Page: 9 : 11-May-17

The Australian Government aims to limit the nation’s tax-to-GDP ratio to 23.9 per cent. This cap is expected to be reached in 2022-23, although this could occur earlier due to factors such as income tax "bracket creep". Treasurer Scott Morrison has conceded that the Government may have to take action to avert this before 2022-23. He has flagged the possibility of personal income tax cuts in 2018, prior to the next federal election. The tax-to-GDP ratio is projected to be 21.5 per cent in 2016-17.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Trump’s bold tax plan spurs PM to try again

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Original article by Joanna Mather, Sue Mitchell
The Australian Financial Review – Page: 3 : 28-Apr-17

The Australian Goverment will renew its push to pass a bill for across-the-board company tax cuts in the Senate after US President Donald Trump unveiled his tax reforms. Treasurer Scott Morrison notes that most developed nations have a lower company tax rate than Australia, and failing to act will threaten investment and jobs. Business Council of Australia CEO Jennifer Westacott and Wesfarmers MD Richard Goyder warn that Trump’s proposal to reduce the US corporate tax rate to 15 per cent highlights the need for Australia to have a more competitive tax regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL

Wealthiest 3pc of earners pay 30pc of tax

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Original article by Joanna Mather
The Australian Financial Review – Page: 2 : 19-Apr-17

Data from the Australian Taxation Office shows that the Federal Government collected $A177bn in income tax revenue in 2014-15. People in the highest tax bracket contributed $A53bn to government coffers, which equates to 30 per cent of the income tax take. People in this tax bracket account for just three per cent of taxpayers. The Government also reaped $A69.3bn in income tax from people in the second-highest tax bracket in 2014-15, which equates to 39.1 per cent of total tax revenue.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE CENTRE FOR INDEPENDENT STUDIES LIMITED, UNIVERSITY OF NEW SOUTH WALES

$238bn tax shield cushions oil giants

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Original article by Ben Butler
The Australian – Page: 19 & 22 : 13-Apr-17

Data from the Australian Taxation Office shows that Petroleum Resource Rent Tax revenue from oil and gas companies fell to just $A845m in 2015-16, compared with $A1.79bn in 2013-14. Meanwhile, the industry claimed a total of $A238bn in tax deductions for exploration expenditure under carry-forward regulations in 2015-16, compared with just $A970 million in 2003-04. The PRRT is currently the subject of two separate reviews, although oil and gas producers have warned that changes to the tax may deter future investment in Australia.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, FEDERAL COURT OF AUSTRALIA

It’s time to raise GST, says Proust

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Original article by Glenda Korporaal
The Australian – Page: 19 & 22 : 2-Feb-17

Australian Institute of Company Directors president Elizabeth Proust says the Federal Government should pursue comprehensive tax reform. She argues that this should include increasing the goods and services tax from 10 per cent to 15 per cent, and adds that reducing personal income tax rates should also be a higher priority than company tax cuts. The AICD released a position paper in 2016 which noted that the average GST rate among OECD countries is 19.2 per cent.

CORPORATES
AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT