TAXATION – GOVERNMENT POLICY – AUSTRALIA

States resist Turnbull offer to tax incomes

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 31-Mar-16

Prime Minister Malcolm Turnbull and Treasurer Scott Morrison will discuss fiscal matters at a meeting with their state counterparts on 1 April 2016. Turnbull will propose a new intergovernmental taxation arrangement. The proposal includes a cut of about two percentage points in income tax rates and the introduction of an income tax surcharge by states and territories to compensate for the negative effects of the income tax cut on their tax revenues. The states are divided in their opinions on the proposal.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, VICTORIA. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

Tax bracket creep to hit poorer half the hardest

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Original article by David Uren
The Australian – Page: 6 : 30-Mar-16

Economic modelling suggests that by 2020 so-called "bracket creep" is likely to wipe out Australian households’ gains from a series of tax cuts since 2004. The Australian Nat­ional University’s modelling indicates that unless the Federal Government’s May 2016 Budget includes income tax cuts, Australians on the lowest incomes may face the largest increase in their tax burden in the next four years. Treasurer Scott Morrison has ruled out personal income tax cuts.

CORPORATES
AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR SOCIAL RESEARCH, AUSTRALIA. DEPT OF THE TREASURY

Mining sector backs 20pc company rate

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 29-Mar-16

A report produced by Canadian academic Jack Mintz has concluded that Australia’s corporate tax rate is uncompetitive, and proposes a progressive reduction from 30 per cent to just 20 per cent. The report was commissioned by the Minerals Council of Australia. The Federal Government’s May 2016 Budget is widely tipped to include a reduction in the company tax rate.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Shorten makes his pitch on tax take

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Original article by David Crowe, Sarah Martin
The Australian – Page: 4 : 16-Mar-16

Federal Opposition Leader Bill Shorten has told the National Press Club that superannuation and negative gearing tax concessions should be reduced, with the savings redirected to areas where more spending is needed. Shorten also stressed the Australian Labor Party’s commitment to achieving full employment, which he defines as a jobless rate of five per cent. Labor will release a report on issues such as social services reform, inequality and unemployment on 16 March 2016.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Lower taxes to wait for spending cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 16-Mar-16

Treasurer Scott Morrison has indicated that the Australian Government’s May 2016 Budget will include a reduction in superannuation tax concessions. However, he has warned that this measure will not be sufficient to finance a significant income tax cut. Morrison says a reduction in government spending rather than increasing other taxes is the best strategy in both the short- and long-term for reducing taxes.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

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