TAXATION – GOVERNMENT POLICY – AUSTRALIA

Tax reform needed to break economic inertia

roymorgansocial Leave a comment

Original article by Tom McIlroy
The Australian Financial Review – Page: 13 : 20-May-24

A new report from the Liberal-aligned thinktank Blueprint Institute has called for various reforms to Australia’s tax system in order to put an end to what it calls the nation’s economic inertia. The thinktank’s proposals include a tax on the unimproved value of land, a reduction in the company tax rate to 25 per cent, the scrapping of state-based payroll taxes and increasing the GST to 15 per cent, along with expanding the goods and services that it applies to. The Blueprint Institute claims that an extra $60 billion a year could be raised if the GST is increased to 15 per cent and its base is broadened.

CORPORATES
BLUEPRINT INSTITUTE, LIBERAL PARTY OF AUSTRALIA

Australians flattened by biggest tax increase in world

roymorgansocial Leave a comment

Original article by Shane Wright
The Sydney Morning Herald – Page: Online : 26-Apr-24

Data from the OECD shows that the amount of income tax paid by the average wage-earner in Australia rose by 7.6 per cent in 2023. New Zealand ranked second among developed nations with an average tax increase of 4.5 per cent. The OECD says the decision to phase out the low- and middle-income tax offset contributed to the sharp rise in Australians’ personal income tax bills in 2023-24. The temporary measure was part of the former Coalition government’s stage-three tax cuts package.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

‘Every taxpayer wins’: PM hails stage three victory

roymorgansocial Leave a comment

Original article by Patrick Commins
The Australian – Page: 1 & 4 : 28-Feb-24

The federal government’s changes to the legislated stage-three personal income tax were passed by the Senate with bipartisan support on Tuesday night. Prime Minister Anthony Albanese contends that 84 per cent of Australians will get a bigger tax cut than they would have via the original version of the former Coalition government’s tax package. The government can be expected to capitalise on the stage-three changes in the final days of campaigning for the Dunkley by-election; Albanese says the changes are a win for "every single taxpayer" in the Melbourne electorate.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Frontline workers lose under Labor’s tax cuts

roymorgansocial Leave a comment

Original article by Patrick Commins, Geoff Chambers, Geoff Chambers
The Australian – Page: 1 & 4 : 14-Feb-24

Analysis suggests that essential workers will benefit in the short-term from the federal government’s changes to the legislated stage-three tax cuts. However, so-called ‘bracket creep’ means that many middle-income earners will be paying more tax in 10 years’ time. They include school principals, police officers, electricians and paramedics. Meanwhile, a report from S&P Global has concluded that the government’s changes could be "marginally" more inflationary than the original version of the package, given that they will return more money to low- and middle-income earners.

CORPORATES
S&P GLOBAL INCORPORATED

Dutton sets scene for election tax battle

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 7-Feb-24

The Coalition agreed to support changes to the legislated stage-three income tax cuts at a partyroom meeting on Tuesday. Opposition Leader Peter Dutton says the Coalition will back the tax cuts for people on low incomes, in order to support families amid the cost-of-living crisis. However, Dutton has indicated that the Coalition will take a "significant" tax policy to the next election; he says the Coalition will reduce taxes for Australian families, as they will need a lot of support to recover from Labor’s current term in office. Shadow treasurer Angus Taylor says ‘bracket creep’ is among the tax issues that the Coalition will aim to address.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Exit stage three: Libs in tax pivot

roymorgansocial Leave a comment

Original article by Geoff Chambers, Joe Kelly, Patrick Commins
The Australian – Page: 1 & 4 : 6-Feb-24

The Coalition will finalise its position on the proposed changes to the stage-three tax income cuts at a joint partyroom meeting on Tuesday. Sources have indicated that the Liberal and National parties are unlikely to oppose the federal government’s changes, although they are expected to seek some amendments to Labor’s legislation. Opposition leader Peter Dutton will also use parliament’s first question time of the year to attack the government and Prime Minister Anthony Albanese for reneging on an election commitment to implement the stage-three tax cuts in full. He will also contend that the government plans to target the negative gearing regime, trusts and the family home.

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

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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