TAXATION – GOVERNMENT POLICY – AUSTRALIA

BHP warns tax changes could result in double whammy

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 & 26 : 24-Sep-15

BHP Billiton has advised that its global tax bill for 2014-15 was $US7.3bn, with taxes and royalties in Australia accounting for $US5.2bn ($A7.3bn) of this total. CFO Peter Beaven says the resources group believes that the amount of tax it pays is "very fair", and said nearly all of its profits earned in Australia are subject to taxation in Australia. Beaven adds that while there is need for a debate on tax reform, he cautioned that unilateral tax reform could potentially lead to companies being taxed twice.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Company tax cut – at a price

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Original article by Ben Potter
The Australian Financial Review – Page: S1 & S2 : 23-Sep-15

Shadow treasurer Chris Bowen says the Federal Opposition is open to reducing the corporate tax rate to 25 per cent. However, he has told the AFR Tax Reform Summit that this should not be funded via an increase in the GST. ACTU president Ged Kearney told the summit that any reduction in the corporate tax rate should not result in lower tax revenue, but stressed that this does not necessarily mean that the GST should be increased. Economist Saul Eslake proposed cutting some income tax breaks to finance a reduction in the corporate tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, ACTU, FAIRFAX MEDIA LIMITED – ASX FXJ, KPMG AUSTRALIA PTY LTD, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Tax options put back on table

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 22-Sep-15

Prime Minister Malcolm Turnbull has given indications that the Australian Government is open to a wide range of tax reforms. This is likely to include reforms that had been ruled out by former PM Tony Abbott. Meanwhile, South Australian Labor Premier Jay Weatherill wants the Government to review superannuation tax concessions. He also says the federal Australian Labor Party should reconsider its opposition to an increase in the goods and services tax.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

GST hike ‘not feasible’ under Deloitte model

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 21-Sep-15

PricewaterhouseCoopers estimates that increasing the GST and broadening its scope would raise $A113.5bn a year by 2019-20. Compensating families for the increase in the GST increase would cost about $A76bn. PwC tax partner Paul Abbey has questioned similar modelling by Deloitte, arguing that the firm underestimated the amount of compensation that would have to be given to taxpayers.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY

Hockey’s last big tax crackdown

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Original article by Joanna Mather, Fleur Anderson
The Australian Financial Review – Page: 1 & 10 : 17-Sep-15

Federal Treasurer Joe Hockey says tax law reforms aimed at combating profit-shifting by multinationals could potentially affect up to 1,000 companies, rather than the 30 that he had initially flagged. Hockey says the revised legislation, which was introduced to Parliament on 16 September 2015, will apply to all multinationals with global revenue of at least $A1bn. Lawyers, accountants and employers’ associations are among those to have expressed concern that the new anti-avoidance laws will deter foreign investment in Australia.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BAKER AND McKENZIE, KPMG AUSTRALIA PTY LTD, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

‘Fair’ GST rise to boost growth

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Original article by Joanna Mather, Jacob Greber
The Australian Financial Review – Page: 1& 8 : 14-Sep-15

A new report from Deloitte outlines several options for tax reform in Australia, estimating that overhauling the tax regime could boost national income by two per cent. The firm has proposed lifting the GST from 10 per cent to 15 per cent, but not increasing the scope of the tax to include items that are currently exempt. It is estimated that this would lift revenue by $A152bn over four years. Deloitte has also canvassed the option of raising the GST to 12.5 per cent and extending it to include fresh food. This option is forecast to raise $A112bn.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, KPMG AUSTRALIA PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

Gary Morgan – Solving the ‘cash economy’ is ‘too hard’ for Joe Hockey and Bill Shorten to tackle. Amnesty is the only solution to allow the economy to start afresh

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 4-Sep-15

The 7-Eleven Stores and now United Petroleum scandals confirm what we at Roy Morgan have been saying for years about the "cash economy". A few years ago I asked Opposition Leader Bill Shorten if he would tackle the "cash economy", Shorten’s answer – "too hard"! (Shorten was Employment and Workplace Relations Minister during the Rudd-Gillard-Rudd Governments). Recently I asked Treasurer Joe Hockey the same question at the Australian Chamber of Commerce and Industry (ACCI) Business Leaders’ Summit. Hockey avoided the question and spoke to his talking points. Obviously the only viable solution to deal with cash "rorts" is to declare an amnesty and allow the economy to start afresh – taxes can be cut without putting up the GST. Unfortunately the issues created by Australia’s large "cash economy" are ignored by politicians and the Fair Work Judiciary – many of whom have reached their current positions following careers and close associations with the unions and the ALP.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, 7-ELEVEN STORES PTY LTD, UNITED PETROLEUM PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. PRODUCTIVITY COMMISSION, ALIBABA.COM CORPORATION, NEW YORK STOCK EXCHANGE, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

GST to pay for income tax cuts

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Original article by Phillip Coorey, Primrose Riordan
The Australian Financial Review – Page: 1 : 31-Aug-15

Federal Finance Minister Mathias Cormann has signalled that the goods and services tax (GST) might be raised to pay for income tax cuts. He said on 30 August 2015 that a tax reform package would be part of an election program to be developed before the next election. New South Wales Premier Mike Baird welcomed Cormann’s comments and agreed about the need to discuss the GST.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

We can agree, say top leaders

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 : 27-Aug-15

The 30 per cent company tax rate made Australia uncompetitive, Rio Tinto MD Phil Edmands told the National Reform Summit in Sydney. Reserve Bank governor Glenn Stevens said changes to industrial relations also had to be looked at to help boost economic growth and employment. Professor Ross Garnaut suggested an economy-wide carbon price to pay down debt.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, KPMG, RESERVE BANK OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, ACTU, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, RIO TINTO LIMITED – ASX RIO, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, GRATTAN INSTITUTE

Leaders seek tax, super reform

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 : 26-Aug-15

The National Reform Summit will be held on 26 August 2015 in Sydney. Business, industry, welfare and union leaders will debate all aspects of Australia’s tax system. Reforms are needed to ensure productivity growth, higher workforce participation, fiscal policy to stimulate economic growth, and sustainability of a retirement income system.

CORPORATES
ACTU, KPMG AUSTRALIA PTY LTD, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY