TAXATION – GOVERNMENT POLICY – AUSTRALIA

Trump tax cuts must be matched

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Original article by Jacob Greber, Phillip Coorey, Misa Han
The Australian Financial Review – Page: 1 & 6 : 17-Nov-16

Federal Treasurer Scott Morrison says official data showing that annual wages growth fell below two per cent in the September 2016 quarter demonstrates the need for company tax reform. He adds that Australia will become less competitive if it does not cut the tax rate and US president-elect Donald Trump reduces company taxes to 15 per cent. Business Council of Australia CEO Jennifer Westacott will also highlight the need for corporate tax reform at the organisation’s annual dinner on 17 November.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUREAU OF STATISTICS, LIBERAL DEMOCRATIC PARTY, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, RESERVE BANK OF AUSTRALIA

ScoMo takes tax fight to Xenophon

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Original article by Phillip Coorey, Simon Evans
The Australian Financial Review – Page: 1 & 4 : 26-Oct-16

The Australian Government will continue to push for the company tax rate for businesses with turnover of up to $A50m to be reduced to 27.5 per cent. The Government requires the support of the Nick Xenophon Team’s three senators, although the party wants the turnover threshold to be capped at $A10m. Treasurer Scott Morrison will attend a series of meetings and functions with representatives of medium-sized businesses in Senator Nick Xenophon’s home state of South Australia, as part of the Government’s push to gain support for its scaled-back corporate tax reform package.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, ONE NATION PARTY, COMMITTEE FOR ADELAIDE, SAGE AUTOMATION LIMITED, BHP BILLITON LIMITED – ASX BHP, GLENCORE AUSTRALIA PTY LTD, GM HOLDEN LIMITED, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, HAIGH’S CHOCOLATES, KORVEST LIMITED – ASX KOV, CODAN LIMITED – ASX CDA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

NXT nixes big business tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 7 : 19-Oct-16

The Nick Xenophon Team’s three senators will vote against the Federal Government’s $A48bn package to progressively reduce the company tax rate to 25 per cent over 10 years. The Government requires the support of at least nine of the 11 crossbenchers for its proposal to reduce the tax rate for all companies with turnover of at least $A10m, as the Opposition only favours a tax cut for companies whose turnover is no more than $A2m. Business groups have called for the implementation of the full tax reform package.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, ESSENTIAL MEDIA COMMUNICATIONS PTY LTD

Labor tax cut block to hit 100,000 businesses

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Original article by Joe Kelly, Sarah Vogler
The Australian – Page: 1 & 2 : 12-Oct-16

The business sector says the Australian Labor Party should reconsider its commitment to restricting a tax cut to businesses with turnover of $A2m rather than the Federal Government’s proposed threshold of $A10m. Tony Greco of the Institute of Public Accountants notes that between 90,000 and 100,000 businesses that boast turnover of $A2m to $A10m have employees and are more likely to use tax relief to take on additional staff than businesses that are below the $A2m threshold, as many of them are sole proprietors.

CORPORATES
AUSTRALIAN LABOR PARTY, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED, MYOB GROUP LIMITED – ASX MYO, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CORELLA CONSTRUCTION

Company tax cuts vital but Senate to resist

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 11-Oct-16

The Australian Government is believed to have conceded that its full corporate tax reform package is unlikely to be supported in the Senate. However, the upper house may pass the first stage of the tax cuts, which will apply to businesses with turnover of no more than $A10m, although the Opposition favours a threshold of $A2m. Treasurer Scott Morrison has argued that the whole tax reform package is necessary to encourage investment in Australia over the long-term.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S CORPORATION

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