TAXATION – GOVERNMENT POLICY – AUSTRALIA

Don’t break tax promise: Labor MPs

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Original article by Greg Brown
The Australian – Page: 1 & 2 : 5-Oct-22

Labor MPs Helen Polley, Mike Freelander and Meryl Swanson have stated that the federal government must not back down on its election commitment to proceed with the Coalition’s stage-three personal income cuts. Freelander says he is "uncomfortable" about the tax cuts – which will benefit high-income earners in particular – but he contends that governments must keep their promises. Treasurer Jim Chalmers has again refused to rule out making changes to the tax package, while Assistant Treasurer Andrew Leigh has also emphasised the need to abide by election commitments. Meanwhile, Chalmers has doubled down on his warning about the outlook for the global economy and the prospect of a further rise in Australia’s inflation rate.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Labor canvasses capping stage three tax cuts

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

The federal government has ruled out scrapping the stage-three income tax cuts that are slated to take effect in mid-2024, although it may be open to scaling them back. The Greens and the majority of independents in the Senate favour winding back the tax cuts, which will primarily benefit people on higher incomes. Labor could potentially announce any change in its stance on the legislated tax cuts in the Budget on 25 October. The British government has reversed its decision to abolish the nation’s top tax rate, and the Greens have urged Labor to follow its example.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Labor urges speed on global tax rules

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Original article by Tom McIlroy
The Australian Financial Review – Page: 10 : 26-May-22

The proposed global 15 per cent minimum tax rate for companies is slated to take effect in 2023. However, the OECD’s secretary-general Mathias Cormann has advised that this will be delayed by at least 12 months. The landmark reform will also include a stricter tax regime for technology giants and other multinationals. Federal Treasurer Jim Chalmers says that in addition to supporting the "two-pillar" deal, Labor will implement domestic measures aimed at ensuring that multinationals pay their fair share of tax.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Chalmers’ Shorten-era tax threat

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Original article by Greg Brown
The Australian – Page: 1 & 4 : 29-Sep-21

Labor abandoned a number of unpopular policy measures that contributed to its 2019 election defeat, including changes to the franking credit and negative gearing regimes. However, shadow treasurer Jim Chalmers is said to have pushed for Labor to retain a policy which targeted the use of family trusts to minimise taxation. He is believed to have raised the issue at a recent meeting of Labor’s strategic policy review committee. Sources have indicated that discussions regarding the policy on discretionary trusts are at a preliminary stage and the issue has not been debated by the shadow cabinet.

CORPORATES
AUSTRALIAN LABOR PARTY

Tax cuts to soon disappear as budget relies on workers to recover from COVID-19

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Original article by Shane Wright
The Age – Page: Online : 22-Sep-21

Analysis by the Parliamentary Budget Office shows that ‘bracket creep’ will erode the benefits of the federal government’s personal income tax cuts over the next decade. The PBO has forecast that people with annual income of $20,000 to $50,000 face an increase of 6.6 per cent in their average tax rate by 2031-32, while those earning between $50,000 and $75,000 will pay an extra three per cent. People earning $96,000 to $160,000 a year are the only ones who will be paying a lower average tax rate. The final stage of the income tax cuts package will take effect in mid-2024.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Don’t trust Labor to cut high-income tax: Treasurer

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Original article by Phillip Coorey
The Australian Financial Review – Page: 9 : 14-Jul-21

Labor leader Anthony Albanese says the party will decide its stance on the stage-three income tax cuts at "an appropriate time". He adds that the COVID-19 pandemic is Labor’s top priority at present. Labor is expected to formally commit to retaining the legislated tax cuts if it wins the next federal election, after the issue was discussed by the party’s leadership group in recent days. However, Treasurer Josh Frydenberg says Labor has consistently opposed the Coalition’s tax policy and it cannot be trusted to honour any commitment regarding the stage-three tax cuts.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Lower corporate taxes vital to growth

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Original article by Tom Dusevic
The Australian – Page: 2 : 30-Jun-21

The Business Council of Australia has released a discussion paper which calls for an overhaul of the nation’s tax system. The BCA contends that tax revenue is too heavily skewed toward the largest companies and the three per cent of individuals who pay the highest personal income tax, and the tax system must evolve in line with a changing economy. BCA CEO Jennifer Westacott says the 30 per cent company tax rate in particular needs to be reviewed, given that the OECD and the Group of Seven have proposed a global minimum corporate tax rate of just 15 per cent.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, GROUP OF SEVEN (G-7)

ALP warms to $130bn tax cuts

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Original article by Geoff Chambers, Greg Brown, Patrick Commins
The Australian – Page: 1 & 4 : 27-May-21

Labor is finalising the tax policy that it will take to the next election, and there are indications that it may support the federal government’s stage-three tax cuts. Labor’s caucus is divided over the issue of the tax cuts, which will benefit high-income earners in particular; however, there is growing support for the tax cuts among senior Labor MPs, who are concerned about a potential voter backlash at the next election over any changes to a tax package that has already been legislated. Labor is not expected to retain the government’s Low and Middle Income Tax Offset, which was intended to be temporary.

CORPORATES
AUSTRALIAN LABOR PARTY

Battle over high-income tax cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 13-May-21

Treasurer Josh Frydenberg has defended the decision to extend the low and middle income tax offset for another year in the May 2021 Budget. He argues that the tax offset will support aggregate demand and job creation, while he has not ruled out extending it again if circumstances warrant such a move. However, Frydenberg contends that the tax offset was never intended to be permanent and must end before the legislated stage-three income tax cuts take effect in 2024. Labor has not yet committed to supporting the tax cuts, which will benefit people on high incomes in particular.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Business calls to fast-track tax cuts

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Original article by Joe Kelly
The Australian – Page: 2 : 26-Apr-21

The third stage of the federal government’s income tax cuts package is slated to take effect from 1 July 2024. Business Council of Australia CEO Jennifer Westacott says the government should consider bringing forward the tax cuts in order to boost the economy and create jobs in the wake of the COVID-19 pandemic. However, Australian Council of Social Service CEO Cassandra Goldie recently called for the third-stage tax cuts to be dropped, arguing that they will benefit people on high incomes the most.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE