TAXATION – GOVERNMENT POLICY – AUSTRALIA

PM ‘won’t blow’ iron ore bonus

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 11-Mar-16

The benchmark iron ore price has fallen below $US60 per tonne, although it remains significantly above the forecast of just $US39/tonne in the Australian Government’s mid-year Budget update. A sustained upturn in the price of the steel input could potentially boost government revenue by up to $A15bn over four years. However, government sources have indicated that the additional revenue will be used to reduce the deficit instead of financing larger tax cuts than the modest reduction that the Government is planning.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RESERVE BANK OF NEW ZEALAND, EUROPEAN CENTRAL BANK, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION

Wrong way to do tax: key adviser

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Original article by Joanna Mather, Phillip Coorey
The Australian Financial Review – Page: 1 & 8 : 4-Mar-16

More resources should be allocated to the bodies engaged in the tax reform process, says Board of Taxation chairman Michael Andrews. He told a tax conference in Melbourne on 3 March 2016 that the debate about tax is highly politicised, which is regrettable. The timing of the debate is not auspicious because people are distracted by political considerations during an election year.

CORPORATES
AUSTRALIA. BOARD OF TAXATION, BIS SHRAPNEL PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, KPMG AUSTRALIA PTY LTD

Cutting company tax good for workers, business leaders insist

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 8 : 2-Mar-16

Business Council of Australia president Catherine Livingston has told a roundtable forum of the need for structural reform of the tax system to stimulate economic growth. She also argued the case for reducing the corporate tax rate to bring it in line with the tax rate for small businesses. The roundtable was organised by "The Australian Financial Review" and the BCA. The other participants included Commonwealth Bank CEO Ian Narev, Qantas CEO Allan Joyce and Wesfarmers CEO Richard Goyder.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, QANTAS AIRWAYS LIMITED – ASX QAN, WESFARMERS LIMITED – ASX WES, COCA-COLA AMATIL LIMITED – ASX CCL, TELSTRA CORPORATION LIMITED – ASX TLS, ASX LIMITED – ASX ASX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

‘Spending cuts must fund tax relief’

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Original article by David Crowe
The Australian – Page: 2 : 1-Mar-16

Federal Treasurer Scott Morrison has told a meeting of Coalition MPs of the need to reduce income taxes over the long-term, stressing that this must be achieved via spending cuts in the Budget. Meanwhile, backbenchers expressed concern about proposed changes to the negative gearing regime for property investors, with one MP warning that any such reforms will be rejected by the party room. Morrison also said Prime Minister Malcolm Turnbull is fully prepared to seek a double-dissolution election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN LABOR PARTY

Tax policy and poll to come early

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 29-Feb-16

The federal Cabinet’s expenditure review committee is likely to discuss the Australian Government’s tax reform policy in the first week of March 2016, with the aim of releasing details of the tax package in early April. Prime Minister Malcolm Turnbull says tax reforms cannot be rushed, and details of the proposed changes will be announced ahead of the Budget in May. There is growing speculation that the Government will opt for a double-dissolution election in July.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Cabinet digs in as PM backflips on CGT

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 24-Feb-16

Prime Minister Malcolm Turnbull has told Parliament that changes to the 33 per cent capital gains tax discount on the sale of superannuation funds’ assets may be part of the Federal Government’s tax reform agenda. He had previously given indications that CGT reforms had been ruled out, but claims that he was specifically referring to the Opposition’s CGT proposals. Meanwhile, cabinet ministers have agreed to wait until the May 2016 Budget to announce the Coalition’s tax policies.

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

Turnbull: no change to capital gains tax

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Original article by Sid Maher
The Australian – Page: 1 & 4 : 23-Feb-16

The Australian Government’s options for tax reform have become more limited after Prime Minister Malcolm Turnbull told Parliament that changes to the capital gains tax regime are not on its agenda. Turnbull warned that the Opposition’s proposed capital gains tax reforms will deter investment in Australia, while its policy on negative gearing would adversely affect house prices. Changes to superannuation tax concessions and tax deductions for work-related expenses are among the few tax reform options that are still available to the Government.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, BUSINESS COUNCIL OF AUSTRALIA, BLUESCOPE STEEL LIMITED – ASX BSL, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. DEPT OF THE TREASURY, NEWSPOLL

Ministers told: stop spending

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Original article by Dennis Shanahan
The Australian – Page: 1 & 4 : 17-Feb-16

Treasurer Scott Morrison will use a National Press Club speech on 17 February 2016 to stress the need to ensure that government spending does not exceed revenue. He will argue that increased taxation should not be used to lift revenue above expenditure, and caution against justifying new spending measures by offsetting them against savings achieved elsewhere. Meanwhile, Prime Minister Malcolm Turnbull has officially ruled out an increase in the GST but says action must be taken on the issue of income tax "bracket creep".

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

Soaring tax load hits workers

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Original article by Dennis Shanahan, Sid Maher
The Australian – Page: 1 & 4 : 16-Feb-16

The Heritage Foundation forecasts that Australia’s tax-to-GDP ratio could potentially rise to 27.5 per cent by 2019. The think tank has warned that this ratio will reach 25.9 per cent unless the Federal Government pursues tax reforms or there is a significant increase in global economic growth. The May 2015 Budget had projected a rise in the tax-to-GDP ratio to just 23.2 per cent by 2019. It had peaked at 24.2 per cent in 2005-06. Treasurer Scott Morrison has signalled that income tax reform remains on the agenda.

CORPORATES
THE HERITAGE FOUNDATION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, IPSOS AUSTRALIA PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, 2GB

Brakes on bracket creep to cost $12.5b

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 15-Feb-16

Modelling by the Centre for Independent Studies (CIS) suggests that the cost of winding back "bracket creep" to the 2012-13 level would cost the Australian Government about $A12.5bn in 2017-18. This would rise to $A16.5bn in 2018-19. Andrew Potter of the CIS describes bracket creep as a "stealth tax" and argues that it should be included in any tax reform agenda.

CORPORATES
THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIA. DEPT OF THE TREASURY