TAXATION – GOVERNMENT POLICY – AUSTRALIA

Coalition voters win in Labor’s tax U-turn: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 7 : 31-Jan-24

Treasury analysis shows that the federal government’s proposed changes to the stage-three income tax cuts package will strongly benefit Coalition voters. The analysis suggest that about 85 per cent of voters in seats held by the Liberal or National parties will be better off than they would have been if the tax cuts had gone ahead in their original form. The federal government will use the Treasury data to seek the Coalition’s support for its changes. The Opposition will not decide its formal stance on the changes until parliament resumes next week; however, it will continue to reiterate that Labor has broken an election promise regarding the tax cuts.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Coalition splits over ALP tax cuts overhaul

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Original article by Rosie Lewis, Jess Malcolm, Sarah Ison
The Australian – Page: 1 & 4 : 30-Jan-24

Shadow cabinet ministers will meet on Tuesday to discuss the federal government’s proposed changes to the legislated stage-three tax cuts. Senior sources within the Liberal Party have suggested that the Coalition will seek amendments to Labor’s legislation but is unlikely to vote against it. Judo Bank’s chief economic adviser Warren Hogan said it would be hard for the Coalition to oppose Labor’s tax changes, although he says it could pursue the ‘reform element’ of the original income tax cuts package ahead of the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, JUDO BANK PTY LTD

Labor to break tax cut promise

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Original article by Phillip Coorey, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 24-Jan-24

The federal government is set to break a key election pledge by making changes to the legislated stage-three personal income tax cuts. The proposed changes were discussed at a cabinet meeting on Tuesday, and will be endorsed by Labor’s caucus on Wednesday. Amongst other things, the government is expected to retain the 37 per cent income tax rate that was to have been abolished in July, although the current income threshold of between $120,000 and $180,000 will be increased. Prime Minister Anthony Albanese is slated to announce the changes to the tax cuts package and new cost-of-living relief measures at a National Press Club speech on Thursday.

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

Greens warn Labor stage-three tax cuts will add to inflation and bring little relief for most workers

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Original article by Paul Karp
The Guardian Australia – Page: Online : 23-Jan-24

Prime Minister Anthony Albanese has given strong indications that further cost-of-living relief will be on the federal government’s agenda at a caucus meeting on Wednesday. However, the government has downplayed reports that it will make changes to the legislated stage-three personal income tax cuts, including retaining the existing top marginal tax rate and increasing the tax-free threshold. Meanwhile, the Greens have written to Treasury Jim Chalmers arguing amongst other things that the tax cuts package is unsustainable, primarily benefits wealthy people and will be inflationary.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY

Micro-taxes stifle productivity

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Original article by Patrick Commins
The Australian – Page: 5 : 13-Dec-23

The Productivity Commission has released a research paper which raises concern about the growing use of industry levies by Australia’s federal and state governments. The Commission has found that governments are using these levies to raise $11bn in revenue a year ‘by stealth’. The agricultural sector was initially the focus of industry levies, but the Commission notes that the sector now accounts for just $600m of this revenue. Deputy chairman Alex Robson contends that taking action to rein in the use of industry levies could help to boost the nation’s productivity.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION

Albanese insists ALP will honour its stage three tax cut promise

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 30-Nov-23

Prime Minister Anthony Albanese has reiterated in parliament that Labor remains committed to implementing the Coalition’s legislated stage-three personal income tax cuts, which are slated to take effect in mid-2024. Labor had committed to proceeding with the tax cuts during the 2022 federal election campaign. Albanese has also told Labor’s final caucus meeting for the year that keeping election promises is critical to maintaining trust with voters, with the nation due to go the polls again in 2025.

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

One sector pays more tax than all the rest combined

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 9-Nov-23

Data from the Australian Taxation Office shows that the federal government’s corporate tax receipts exceeded $83bn in 2021-22, compared with $68.2bn in the previous financial year. Companies in the mining, energy and water sector paid a total of $42.2bn in income tax for the year. ATO Deputy Commissioner Rebecca Saint says fiscal 2022 was the first year in which these sectors paid more tax than all other sectors combined. The ATO’s annual corporate tax transparency report also shows that 31 per cent of all companies paid no income tax for the financial year.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Labor shuns calls for bold tax reform

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Original article by Phillip Coorey, Michael Read
The Australian Financial Review – Page: 1 & 4 : 23-Aug-23

The federal government is expected to pursue an incremental approach to tax reform due to the perception that large-scale changes would be politically challenging. Sources have indicated that Labor will not seek major tax changes during its current term in office, and it will adopt a similar approach if it is re-elected in 2025. The government’s agenda for its current term includes changes to the petroleum resource rent tax and an increase in the tax rate for superannuation accounts exceeding $3m; however, it is believed to have ruled out changes to the company tax rate, the goods and services tax and the legislated stage-three income tax cuts. The Business Council of Australia recently called for an overhaul of the tax system.

CORPORATES
AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA

Stage-three tax cuts cost blowout predicted with the wealthy and men to benefit most

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Original article by Paul Karp
The Guardian Australia – Page: Online : 17-May-23

The Parliamentary Budget Office’s latest analysis of the legislated stage-three personal income cuts is that the package will cost $313bn over a decade. This compares with a previous estimated of $254bn, released in October 2022. The PBO’s analysis was undertaken on behalf of the Greens, and concludes that men will receive 65 per cent of the tax cuts over 10 years, or $203.7bn of the total. People in the highest income brackets are also set to gain the most benefit from the tax package. Greens leader Adam Bandt describes the stage-three tax cuts as a "massive black hole", and argues that the money should be spent on services for all Australians rather than benefiting the wealthy.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIAN GREENS

Don’t break tax promise: Labor MPs

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Original article by Greg Brown
The Australian – Page: 1 & 2 : 5-Oct-22

Labor MPs Helen Polley, Mike Freelander and Meryl Swanson have stated that the federal government must not back down on its election commitment to proceed with the Coalition’s stage-three personal income cuts. Freelander says he is "uncomfortable" about the tax cuts – which will benefit high-income earners in particular – but he contends that governments must keep their promises. Treasurer Jim Chalmers has again refused to rule out making changes to the tax package, while Assistant Treasurer Andrew Leigh has also emphasised the need to abide by election commitments. Meanwhile, Chalmers has doubled down on his warning about the outlook for the global economy and the prospect of a further rise in Australia’s inflation rate.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY