TAXATION – GOVERNMENT POLICY – AUSTRALIA

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

Morrison warns super rebels on backing rich

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Original article by Phillip Coorey, Sally Patten
The Australian Financial Review – Page: 4 : 28-Jul-16

Federal Treasurer Scott Morrison says people who have already exceeded the proposed $A500,000 lifetime cap on non-concessional superannuation contributions stand to benefit the most if the reform is scrapped. Morrison has also warned that unless the Government’s super reforms proceed and spending is reduced, the nation will face higher taxes, a bigger Budget deficit and a blowout in public debt. The Government may agree to exempt certain "life events" from the lifetime cap.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, LIBERAL-NATIONAL PARTY OF QUEENSLAND, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

PM steeled for Senate showdown

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Original article by David Crowe
The Australian – Page: 1 & 4 : 14-Jul-16

The Federal Government will negotiate with crossbenchers on key election policies such as company tax cuts, but Prime Minister Malcolm Turnbull has conceded that some compromises will be necessary. However, the Greens have signalled that they will oppose some of the proposed tax reforms, while Nick Xenophon says ensuring the future of Arrium and manufacturing jobs should take precedence over company tax cuts. Meanwhile, some Coalition MPs are pushing for changes to the Government’s superannuation reforms.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, CROSBY TEXTOR RESEARCH STRATEGIES RESULTS PTY LTD

Gary Morgan’s comment on the surge in Roy Morgan Business Confidence in June

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Original article by Gary Morgan, Roy Morgan Research
Market Research Update – Page: Online : 12-Jul-16

Business Confidence was up 7.6 points in June 2016, to 119.5. However, in July it may "take a hit" given the increased size of the crossbench in the Senate. All businesses will have their eyes on the Coalition’s promised corporate tax cuts – reducing the corporate tax rate for large businesses to 25 per cent (from the current 30 per cent) over the next decade. The Coalition’s election victory means this policy is still on the agenda and the prospect of tax cuts over the next few years should continue to support Business Confidence. Investment certainty is crucial for larger businesses undertaking major projects with substantial investment expenditure.

CORPORATES
ROY MORGAN RESEARCH LIMITED

PM faces budget fight after win

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 11-Jul-16

Cabinet secretary Arthur Sinodinos says the Coalition has a mandate for its Budget measures after winning the 2016 federal election. He has also downplayed the impact that proposed superannuation reforms had on the election result. The super reforms are likely to be a key issue on the agenda for a party-room meeting on 18 July, with the $A500,000 lifetime cap on contributions likely to come under particular scrutiny. There is also growing acceptance within the Coalition that its 10-year policy to reduce the company tax rate will not pass the Senate in its entirety.

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

Keating slams unaffordable tax cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 7 : 24-Jun-16

Former prime minister Paul Keating has criticised the Coalition’s proposal to progressively cut the corporate tax rate from 30 per cent to 25 per cent. He described the tax cut as irresponsible and unaffordable. Keating warned that it would damage Australia’s fiscal position because of lower tax revenue. According to Paul Abbey, a partner at PricewaterhouseCoopers, low corporate taxes are necessary to attract foreign investment, although it can take decades for the benefits of such a policy to be noticeable.

CORPORATES
PRICEWATERHOUSECOOPERS, BUSINESS COUNCIL OF AUSTRALIA, VICTORIA UNIVERSITY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT, LOWY INSTITUTE FOR INTERNATIONAL POLICY, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF NEW SOUTH WALES