TAXATION – GOVERNMENT POLICY – AUSTRALIA

Morrison says lower backpacker tax is competitive

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Original article by Laura Tingle
The Australian Financial Review – Page: 8 : 29-Sep-16

Treasurer Scott Morrison has rejected criticism of the tax treatment of non-resident income. Faced with opposition from tourism operators and farmers to the original proposal of a 32.5 per cent backpackers tax rate, the Government has reduced it to 19 per cent. However, at the same time it has proposed raising the passenger departure tax by $A5. Morrison said the new tax will not make Australia less attractive to backpackers than New Zealand, the UK and Canada.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Senate urged to pass tax reforms

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Original article by Annabel Hepworth
The Australian – Page: 19 & 23 : 28-Sep-16

The Federal Government’s bill to progressively reduce the company tax rate is being scrutinised by a Senate committee. The Business Council of Australia has used its submission to argue the case for Parliament to pass all of the tax reforms rather than restricting tax cuts to the small business sector. The Minerals Council of Australia and the Australian Industry Group also favour implementing the tax cuts in full, although the latter concedes that providing tax relief to small businesses would be better than having the entire bill reject by Parliament.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, ACTU, AUSTRALIAN LABOR PARTY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Big business carries hefty burden as world moves to reform tax structures

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Original article by David Uren
The Australian – Page: 4 : 27-Sep-16

A new report shows that company tax revenue accounts for 4.9 per cent of Australia’s GDP, compared with an average of just 2.9 per cent among OECD nations. The report also notes that 28 OECD countries have a company tax rate that is lower than Australia’s 30 per cent rate, compared with just 12 when the current tax rate was introduced in 2000. In addition, the average company tax rate among OECD member nations is now 24.7 per cent, down from 31.6 per cent in 2000.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIAN LABOR PARTY, ACTU

Company tax cuts ‘make bracket creep inevitable’

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Original article by David Uren
The Australian – Page: 1 & 4 : 20-Sep-16

The Australian Government is committed to limiting overall tax revenue to 23.9 per cent of GDP. Its plan to progressively reduce the company tax rate over 10 years is intended to have no impact on overall tax revenue. As a result, the lower company tax revenue will have to be offset by higher revenue from other taxes. The Grattan Institute warns that this most likely will mean an increase in income tax revenue, which CEO John Daley notes is the only source of tax revenue that increases as a percentage of GDP.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, GRATTAN INSTITUTE, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN LABOR PARTY

Company tax cuts to be scaled back

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Original article by David Crowe
The Australian – Page: 1 & 2 : 15-Sep-16

The Australian Government plans to introduce legislation in the lower house to implement its full 10-year plan to reduce the company tax rate for all businesses. However, it is preparing to prioritise tax cuts for small businesses when the legislation is debated in the Senate, due to expectations that the full policy will be rejected by the upper house. The Government plans to reduce the tax rate for businesses with annual turnover of up to $A10m to 27.5 per cent, although the Opposition favours a turnover threshold of just $A2m.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, BUSINESS COUNCIL OF AUSTRALIA, NICK XENOPHON TEAM, ONE NATION PARTY

Howard urges PM on tax, IR reform

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 12-Sep-16

Ex-prime minister John Howard believes that Malcolm Turnbull can successfully lead the Coalition to the next federal election, but stresses that he must have a united team. Howard has also identified industrial relations and tax reform as policies that the Federal Government must pursue, although Turnbull says both issues are on the legislative agenda. Meanwhile, Treasurer Scott Morrison says the government has had "constructive" talks with the Opposition regarding Budget savings measures.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, ONE NATION PARTY

Business chiefs lobby crossbench on company tax

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Original article by David Crowe
The Australian – Page: 1 & 4 : 26-Aug-16

Analysis of tax data by the Business Council of Australia shows that the nation’s 12 largest companies account for approximately 33 per cent of corporate tax revenue. The BCA intends to ramp up its campaign in support of the Federal Government’s proposal to progressively reduce the tax rate for all companies. Crossbench senators will be targeted by its lobbying campaign. The BCA will argue that a high tax rate will deter companies from investing in Australia, while increased investment will in turn stimulate economic growth.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, ONE NATION PARTY, LIBERAL PARTY OF VICTORIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, COCA-COLA AMATIL LIMITED – ASX CCL, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, FORTESCUE METALS GROUP LIMITED – ASX FMG, SUNCORP GROUP LIMITED – ASX SUN, BP AUSTRALIA LIMITED, ARRIUM LIMITED – ASX ARI, OXFAM

Turnbull’s GST plan stirs party rebels

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Original article by Phillip Coorey
The Australian Financial Review – Page: 7 : 16-Aug-16

There is dissent within the Coalition’s ranks over a new proposal for the distribution of GST revenue. Prime Minister Malcolm Turnbull has proposed the introduction of a "floor price" to ensure that no state is disadvantaged in the allocation of GST revenue. Each state would be guaranteed at least 70-75 per cent of their per capita share of GST revenue. However, Tasmanian Liberal senators have cautioned against changing the current revenue-sharing arrangement.

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

Turnbull’s GST pledge sparks row

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Original article by David Uren, Andrew Burrell
The Australian – Page: 1 & 2 : 15-Aug-16

Prime Minister Malcolm Turnbull has told the state conference of the Liberal Party of Western Australia that the system for distributing GST revenue will be revamped. Some 70 per cent of WA’s share of GST revenue is allocated to other states, but Premier Colin Barnett argues that each state should receive at least 75 per cent of their per capita share of revenue. Turnbull has proposed changing the system to ensure that each state receives a minimum share of their largest source of GST revenue. Tasmanian Premier Will Hodgman says Turnbull has not consulted the states and territories, adding that he will oppose any change to the system.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, TASMANIA. DEPT OF PREMIER AND CABINET, QUEENSLAND. TREASURY, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, LIBERAL PARTY OF WESTERN AUSTRALIA, VICTORIA. DEPT OF TREASURY AND FINANCE, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Tax reform taskforce to shut down

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Original article by Joanna Mather
The Australian Financial Review – Page: 8 : 4-Aug-16

The Federal Government is believed to have decided to wind up the Tax White Paper Unit, which has operated within the Treasury since March 2015. The taskforce is likely to cease to operate within weeks. The Government seems to be unwilling to consider tax reforms other than changes to superannuation and the company tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD