TAXATION – GOVERNMENT POLICY – AUSTRALIA

High company tax rate halted Sydney shift for Catcha Group

roymorgansocial Leave a comment

Original article by Ben Potter
The Australian Financial Review – Page: 4 : 10-Jun-16

Catcha Group founder Patrick Grove has indicated that the corporate tax rate was a key factor in his decision not to relocate some of his Malaysia-based business empire’s operations to Australia. He adds that the corporate tax rate meant Australia was ruled out when he was considering shifting Catcha’s headquarters to a global city several years ago. The Federal Government intends to reduce the tax rate for all companies to 25 per cent over the next decade.

CORPORATES
CATCHA GROUP, IFLIX LIMITED, IPROPERTY GROUP LIMITED, ICAR ASIA LIMITED – ASX ICQ, ENSOGO LIMITED – ASX E88, REA GROUP LIMITED – ASX REA, NETFLIX INCORPORATED, AUSTRALIAN LABOR PARTY, ANDERSEN, TECHNOLOGY ONE LIMITED – ASX TNE, ONESHIFT PTY LTD, POWEREDLOCAL

Business rebuts tax-cut attacks

roymorgansocial Leave a comment

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 9-Jun-16

The heads of four Australian employers’ and industry groups have criticised opponents of the Federal Government’s proposal to progressively reduce the company tax rate over 10 years. They note that GDP will be boosted by one per cent on an ongoing basis as a result of the tax cuts, and argue that there is no justification for taxing businesses at a different rate depending on their size. The business leaders also warn that opposition to the tax cuts reflects broader anti-business sentiment.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVOLUTION MINING LIMITED – ASX EVN, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED

Tax cut gain ‘twice cost to the budget’

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 6 : 8-Jun-16

Research by Chris Murphy of Independent Economics has concluded that the Australian Government’s proposal to progressively reduce the company tax rate will have significant economic benefits. Murphy has estimated that the "consumer benefit" from the tax cuts will be around $A2.39 for every $A1.00 in forgone revenue. Murphy has also rejected suggestions that the tax cuts will boost the after-tax profits of offshore investors.

CORPORATES
INDEPENDENT ECONOMICS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN LABOR PARTY, GRATTAN INSTITUTE, THE AUSTRALIA INSTITUTE LIMITED, AUSTRALIAN GREENS, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED)

Company levy ‘just 4.3pc of total take’

roymorgansocial Leave a comment

Original article by Annabel Hepworth
The Australian – Page: 6 : 1-Jun-16

Analysis by Deloitte Access Economics suggests that the Australian Government will collect some $A1.11trn in corporate tax revenue between 2016-17 and 2026-27. It is estimated that the Government’s proposed company tax cuts will account for no more than 4.3 per cent of this revenue, and just 0.8 per cent of the Government’s overall revenue during this period. Minerals Council of Australia CEO Brendan Pearson says the Deloitte figures demonstrate that the proposed tax cuts are justified.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MMG LIMITED – ASX MMG

Business to push Turnbull tax cuts

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 10 : 20-May-16

The Business Council of Australia will spearhead a campaign by business groups to promote the Australian Government’s proposal to progressively reduce the company tax rate to 25 per cent. The BCA has not become directly involved in a federal election campaign since 2007. The advertising campaign is expected to embrace traditional and online media, and be launched at around the mid-point of the election campaign.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, AUSTRALIAN MEDICAL ASSOCIATION LIMITED, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, JWS RESEARCH PTY LTD

Company tax drop will pay off, says McKibbin

roymorgansocial Leave a comment

Original article by Ben Potter
The Australian Financial Review – Page: 7 : 13-May-16

Prominent economist Warwick McKibbin has urged the Coalition to proceed with its proposed reduction in the company tax rate despite its high cost. The policy is estimated to cost $A48 billion over 10 years but McKibbin says it will add $A160 billion to GDP in the long-term. He disagrees with the assessment of the policy’s future benefits by Victoria University’s Janine Dixon, who calculated that a company tax cut would increase GDP while reducing gross national product by between $A800 and $A2,000 per capita.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, VICTORIA UNIVERSITY. CENTRE OF POLICY STUDIES

Business lashes PM on super, tax

roymorgansocial Leave a comment

Original article by Patrick Durkin, Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 11-May-16

Asciano chairman Malcolm Broomhead has questioned whether the Australian Government will act on its May 2016 Budget commitment to progressively reduce the company tax rate to 25 per cent. He says the Government has already broken its promise to make no changes to the superannuation regime, and criticised the retrospective nature of the super tax reforms. Treasurer Scott Morrison and Foreign Minister Julie Bishop have emphasised that the tax changes will only apply to future rather than past super earnings.

CORPORATES
ASCIANO LIMITED – ASX AIO, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, WHITEHAVEN COAL LIMITED – ASX WHC, BHP BILLITON LIMITED – ASX BHP, HOST-PLUS, INSTITUTE OF PUBLIC AFFAIRS LIMITED, LIBERAL PARTY OF AUSTRALIA

Tax crackdown will be far reaching

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 17 : 5-May-16

The Corporate Tax Association’s Michelle de Niese says the diverted profits tax outlined in the Australian Government’s May 2016 Budget may prove to be broader in scope than a similar tax in the UK. Companies found to have engaged in profit-shifting will face a tax rate of 40 per cent on such profits, compared with the corporate tax rate of 30 per cent. Mark Konza of the Australian Taxation Office adds that the new tax may affect more taxpayers than the multinational anti-avoidance law, which was introduced in 2015.

CORPORATES
CORPORATE TAX ASSOCIATION, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RSM PTY LTD, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, NETFLIX INCORPORATED

Average Joes saved from bracket creep

roymorgansocial Leave a comment

Original article by Fleur Anderson
The Australian Financial Review – Page: B5 : 4-May-16

The 37 per cent personal income tax rate threshold will be raised from $A80,000 to $A87,000. The new measure, announced by the Federal Government in the May 2016 Budget, will take effect on 1 July. Treasurer Scott Morrison said that 500,000 taxpayers will benefit from the "bracket-creep" tax cut.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Morrison carves up super to fund business tax cuts

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: B1-B2 : 4-May-16

The Australian Government forecasts that the Budget deficit will rise from $A37.4bn to $A39.9bn in 2015-16, while it expects the nation’s net debt to peak at 25.8 per cent of GDP in 2017-18. The May 2016 Budget outlines plans to progressively reduce the tax rate for all businesses to 25 per cent by 2026-27. Businesses whose turnover does not exceed $A10m will benefit from 1 July, when their tax rate will be reduced to 27.5 per cent. The Budget also includes changes to the tax regime for superannuation contributions and an increase in the $A80,001 income tax threshold to $A87,001.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA