TAXATION – GOVERNMENT POLICY – AUSTRALIA

Tireless hero for innovation

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 35 & 36 : 18-Dec-15

Business Council of Australia president Catherine Livingstone has been named the Business Person of the Year for 2015 by "The Australian Financial Review". Livingstone has been a keen advocate for a greater focus on innovation, and she has welcomed the Federal Government’s innovation statement under new Prime Minister Malcolm Turnbull. She also believes that tax reform should be a priority for the Government.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TELSTRA CORPORATION LIMITED – ASX TLS, COCHLEAR LIMITED – ASX COH, AUSTRALIA. NATIONAL COMMISSION OF AUDIT, AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, CSIRO

Morrison flags taking IR reform as election issue

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 17-Dec-15

Changes must be made to the industrial relations (IR) regime to ensure economic growth in Australia. Treasurer Scott Morrison signalled on 16 December 2015 that workplace relations reform could become an election issue. The end of the mining boom makes it necessary to make adjustments in both tax and IR policies.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, LIBERAL PARTY OF AUSTRALIA, MOODY’S ANALYTICS AUSTRALIA PTY LTD, FITCH AUSTRALIA PTY LTD

Income tax for states in GST plan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 11-Dec-15

Australia’s federal, state and territory treasurers will continue to conduct negotiations over the division of tax revenue from the GST. They agreed at a meeting on 10 December 2015 to consider a proposal by South Australian Premier Jay Weatherill. He suggested in November that extra revenue from a rise in the GST could be used to fund tax cuts. The states would also receive 17.5 per cent of income tax revenue, with no restrictions on how they would spend it.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

Rio’s Walsh wants Australia to aim for Asia’s tax rate

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Original article by Amanda Saunders
The Australian Financial Review – Page: 9 : 3-Dec-15

Rio Tinto CEO Sam Walsh says reducing Australia’s company tax rate is the best way to encourage investment and new business start-ups. He notes that the average corporate tax rate in Asia is around 21 per cent, and suggests that Australia should seek to reduce its company tax rate to a similar level.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GROUP OF TWENTY (G-20)

GST rise in trouble as rebellion in Senate grows

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Original article by Primrose Riordan
The Australian Financial Review – Page: 4 : 12-Nov-15

The majority of cross-bench senators will need to back any push by the Australian Government to increase the GST for it to succeed. However, a number of cross-bench senators have stated their opposition to lifting the GST to 15 per cent, as have several independent MPs in the lower house. The Opposition and the Australian Greens will also vote against any changes to the GST.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAMILY FIRST PARTY AUSTRALIA LIMITED, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Gary Morgan – Tax reform and broadening the GST base will help tackle Australia’s "cash economy"

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 9-Nov-15

The solid increase in the ANZ-Roy Morgan Consumer Confidence rating (now 116.6, up from 105.3 pre-Turnbull) and Roy Morgan Business Confidence (119.3 in October 2015, up from 102.6 in August) since Malcolm Turnbull became Prime Minister in mid-September gives him the political capital to make the tough decisions now to ensure Australia’s future prosperity. The recent discussion about the taxation system – including increasing the GST from 10 per cent to 15 per cent, and possibly broadening the GST base, is needed because too many people and companies do not pay their fair share of tax. Broadening the GST base in combination with tax reform will help tackle Australia’s booming "cash economy" and allow the Federal Government to implement extensive industrial relations reform. Australians who want to prosper will not complain, as more jobs will be available for everyone.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Rich could pay 27pc super tax

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Original article by Phillip Coorey, Jennifer Hewett
The Australian Financial Review – Page: 1 & 2 : 11-Nov-15

Most Australians’ contributions to their superannuation funds are taxed at 15 per cent at present. The tax reform options being examined by the Federal Government include a proposal to tax super contributions at 20 percentage points below a taxpayer’s marginal income tax rate. Treasurer Scott Morrison has indicated that the Government’s focus is on taxing super at the accumulation phase. In contrast, the Opposition’s policy is centred on taxing super upon retirement.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, DELOITTE ACCESS ECONOMICS PTY LTD

OECD growth forecast cut to 2.6pc from 3pc

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Original article by Jacob Greber
The Australian Financial Review – Page: 8 : 10-Nov-15

The OECD has downgraded its economic growth forecast for Australia in 2015 from 2.3 per cent to 2.2 per cent. Meanwhile, the economy is expected to expand by 2.6 per cent in 2016, compared with the OECD’s previous forecast of three per cent growth. The OECD’s economic outlook report suggests that Australia’s unemployment rate will remain at around 6.2 per cent in 2016. The OECD has also urged the Federal Government to pursue tax reform, including an increase in the rate and scope of the GST.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Bank GST for company tax cut plan

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 9-Nov-15

The Parliamentary Budget Office estimates that the goods and services tax will generate revenue of $A18bn over the next four years. However, increasing the tax to 15 per cent and broadening its scope to include financial services could potentially lift revenue to around $A27bn over four years. This is one of the options that will be considered by the Federal Government, and has been advocated by South Australian Premier Jay Weatherill.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, INTERNATIONAL MONETARY FUND

BCA says cut taxes for business first

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 6-Nov-15

Business Council of Australia president Catherine Livingstone argues that a lower corporate tax rate should be at the top of the Federal Government’s tax reform agenda. She notes that reducing the corporate tax burden has been proven to be most effective at boosting innovation and economic growth in other countries. Meanwhile, Prime Minister Malcolm Turnbull has stressed that tax reforms will not gain widespread public support unless they are seen to be fair.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, DELOITTE TOUCHE TOHMATSU LIMITED