TAXATION – GOVERNMENT POLICY – AUSTRALIA

‘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

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