TAXATION – GOVERNMENT POLICY – AUSTRALIA

Hockey to outline tax cuts

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Original article by Phillip Coorey, Misa Han
The Australian Financial Review – Page: 1 : 24-Aug-15

Treasurer Joe Hockey will talk about the benefits of tax cuts in his speech to be delivered to the Tax Institute and Chartered Accountants of Australia & New Zealand in Sydney on 24 August 2015. Hockey will stress the importance of income tax relief in stimulating economic growth. In his view, "tax bracket creep" has negative consequences for the economy and must be combatted.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, TAXATION INSTITUTE OF AUSTRALIA, CHARTERED ACCOUNTANTS AUSTRALIA AND NEW ZEALAND, AUSTRALIAN BUREAU OF STATISTICS

Treasury’s wine-tax rort guide

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Original article by Simon Evans
The Australian Financial Review – Page: 1 : 21-Aug-15

A rebate system introduced in 2004 to help small winegrowers in regional areas is being rorted by some unscrupulous operators, according to Assistant Treasurer Josh Frydenberg. The number of entities claiming wine equalisation tax (WET) credits in 2013-14 was 1967, about 100 more than in 2006-07. The Treasury estimates abuse of the so-called WET rebates is set to cost taxpayers $A350 million by 2016. Frydenberg has released a discussion paper and set up a panel of industry experts as he moves to reform the system.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, DE BORTOLI WINES PTY LTD, THE YALUMBA WINE COMPANY, FRASER GALLOP ESTATE, WINEMAKERS’ FEDERATION OF AUSTRALIA INCORPORATED

High-risk super funds put on ATO watch list

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Original article by Kate Cowling
The Australian Financial Review – Page: 9 : 21-Aug-15

The Australian Taxation Office (ATO) is investigating self-managed super funds (SMSFs) engaging in aggressive tax strategies. SMSFs considered high risk will be placed on a watch list and the trustee could be fined for breaches of the Superannuation Industry Supervision Act. Assistant commissioner Kasey Macfarlane warned that individuals "looking to play the system" would be identified through new data capture techniques adopted by the ATO.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE TAX INSTITUTE, RP DATA LIMITED, AUSTRACK PTY LTD

‘Kidnap’ exemption to be introduced to Parliament

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Original article by Joanna Mather
The Australian Financial Review – Page: 11 : 20-Aug-15

Assistant Treasurer Josh Frydenberg has convinced some crossbench senators to support legislation that will exempt about 1,000 private companies from revealing their tax affairs. Independent senator Nick Xenophon is the latest to agree to the "kidnap" exemption, so called because some owners of private companies fear they will be crime targets if their fortunes are revealed. With the Australian Labor Party and Australian Greens opposing the change, the government needs six of the eight crossbenchers to support its bill.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, TEYS BROS (HOLDINGS) PTY LTD, AUSTRALIAN TAXATION OFFICE, BUSINESS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Super tax breaks ‘lurks for the rich’

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 19-Aug-15

The Grattan Institute advocates a review of superannuation tax breaks, negative gearing and the capital gains tax discount which, the institute says, are used mainly by rich Australians. The institute states in a paper to be presented at the National Reform Summit that wealthy Australians do not need tax incentives; they would save for retirement without them.

CORPORATES
GRATTAN INSTITUTE, THE MENZIES RESEARCH CENTRE LIMITED, THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Uber and Airbnb to face grilling over tax practices

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Original article by Fleur Anderson
The Australian Financial Review – Page: 7 : 18-Aug-15

The Senate committee on corporate tax avoidance has turned its attention to Uber and Airbnb, its chairman claiming tens of millions of dollars might be lost to the government if it failed to establish proper tax settings for sharing economy companies. Senator Sam Dastyari said he did not want Uber and similar companies setting a precedent in which they avoided Australian tax by sending profits offshore.

CORPORATES
UBER GLOBAL PTY LTD, AIRBNB AUSTRALIA PTY LTD, AUSTRALIA. SENATE ECONOMICS LEGISLATION COMMITEE, IBISWORLD PTY LTD, AUSTRALIAN TAXATION OFFICE, FEDERAL COURT OF AUSTRALIA, SANTOS LIMITED – ASX STO, CHEVRON CORPORATION, EXXONMOBIL CORPORATION, CALTEX AUSTRALIA LIMITED – ASX CTX, BP PLC, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORIGIN ENERGY LIMITED – ASX ORG, VIVA ENERGY AUSTRALIA LIMITED, APPLE INCORPORATED, MICROSOFT CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NOVARTIS AG, PFIZER INCORPORATED

$2.5m super cap gains support

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Original article by Sally Rose
The Australian Financial Review – Page: 6 : 4-Aug-15

There is growing support among superannuation funds for the introduction of a cap on super balances of at least $A2.5 million. The Actuaries Institute expressed support for the cap in its submission to the Australian Government’s tax inquiry, which closed on 31 July 2015. The institute also believes that the transfer of super from the accumulation to retirement phase should trigger capital gains tax liability.

CORPORATES
THE INSTITUTE OF ACTUARIES OF AUSTRALIA, GRATTAN INSTITUTE, BT FINANCIAL GROUP PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, TOWERS WATSON, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE

Labor splits over GST increase

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 21-Jul-15

It is estimated that lifting the GST rate from 10 per cent to 15 per cent would increase annual revenue by about $A30bn. South Australian Premier Jay Weatherill and Australian Capital Territory Chief Minister Andrew Barr have indicated that they would consider the reform, with the latter saying his support would be conditional on the payment of sufficient compensation. Victoria and Queensland are the only Australian Labor Party-led state governments that remain firmly opposed to increasing the GST.

CORPORATES
SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN CAPITAL TERRITORY. DEPT OF THE CHIEF MINISTER, AUSTRALIAN LABOR PARTY, VICTORIA. DEPT OF PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, TASMANIA. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, LIBERAL PARTY OF NEW SOUTH WALES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIAN GREENS

Hockey bid for election tax cuts

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 20-Jul-15

Treasurer Joe Hockey has signalled that tax reform will be on the agenda for the federal election in 2016. He says the current income tax regime discourages people from earning additional money, with so-called bracket creep likely to push people on the average income onto the second-highest tax rate. Hockey has also urged state governments to support GST reform, although former treasurer Peter Costello says the government is unlikely to gain the support of all states.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Super tax reversal revealed

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 9 : 1-Jul-15

Shadow treasurer Chris Bowen says the Federal Government should release four submissions made by the Treasury to Treasurer Joe Hockey on the issue of superannuation tax reform. In late June 2015, Treasury official Ian Beckett sent a letter to the Opposition in response to a Freedom of Information request for details of the submissions. One of the submissions was made on the same day that the Opposition released its own superannuation tax proposals. The Government subsequently took such tax reform off its agenda.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, LIBERAL PARTY OF AUSTRALIA