TAXATION – GOVERNMENT POLICY – AUSTRALIA

Micro-taxes stifle productivity

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Original article by Patrick Commins
The Australian – Page: 5 : 13-Dec-23

The Productivity Commission has released a research paper which raises concern about the growing use of industry levies by Australia’s federal and state governments. The Commission has found that governments are using these levies to raise $11bn in revenue a year ‘by stealth’. The agricultural sector was initially the focus of industry levies, but the Commission notes that the sector now accounts for just $600m of this revenue. Deputy chairman Alex Robson contends that taking action to rein in the use of industry levies could help to boost the nation’s productivity.

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AUSTRALIA. PRODUCTIVITY COMMISSION

Albanese insists ALP will honour its stage three tax cut promise

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 30-Nov-23

Prime Minister Anthony Albanese has reiterated in parliament that Labor remains committed to implementing the Coalition’s legislated stage-three personal income tax cuts, which are slated to take effect in mid-2024. Labor had committed to proceeding with the tax cuts during the 2022 federal election campaign. Albanese has also told Labor’s final caucus meeting for the year that keeping election promises is critical to maintaining trust with voters, with the nation due to go the polls again in 2025.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

One sector pays more tax than all the rest combined

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 9-Nov-23

Data from the Australian Taxation Office shows that the federal government’s corporate tax receipts exceeded $83bn in 2021-22, compared with $68.2bn in the previous financial year. Companies in the mining, energy and water sector paid a total of $42.2bn in income tax for the year. ATO Deputy Commissioner Rebecca Saint says fiscal 2022 was the first year in which these sectors paid more tax than all other sectors combined. The ATO’s annual corporate tax transparency report also shows that 31 per cent of all companies paid no income tax for the financial year.

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AUSTRALIAN TAXATION OFFICE

Labor shuns calls for bold tax reform

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Original article by Phillip Coorey, Michael Read
The Australian Financial Review – Page: 1 & 4 : 23-Aug-23

The federal government is expected to pursue an incremental approach to tax reform due to the perception that large-scale changes would be politically challenging. Sources have indicated that Labor will not seek major tax changes during its current term in office, and it will adopt a similar approach if it is re-elected in 2025. The government’s agenda for its current term includes changes to the petroleum resource rent tax and an increase in the tax rate for superannuation accounts exceeding $3m; however, it is believed to have ruled out changes to the company tax rate, the goods and services tax and the legislated stage-three income tax cuts. The Business Council of Australia recently called for an overhaul of the tax system.

CORPORATES
AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA

Stage-three tax cuts cost blowout predicted with the wealthy and men to benefit most

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Original article by Paul Karp
The Guardian Australia – Page: Online : 17-May-23

The Parliamentary Budget Office’s latest analysis of the legislated stage-three personal income cuts is that the package will cost $313bn over a decade. This compares with a previous estimated of $254bn, released in October 2022. The PBO’s analysis was undertaken on behalf of the Greens, and concludes that men will receive 65 per cent of the tax cuts over 10 years, or $203.7bn of the total. People in the highest income brackets are also set to gain the most benefit from the tax package. Greens leader Adam Bandt describes the stage-three tax cuts as a "massive black hole", and argues that the money should be spent on services for all Australians rather than benefiting the wealthy.

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AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIAN GREENS

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.

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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.

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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.

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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