James Pearson, the CEO of the Australian chamber of commerce and the industry (ACCI) told that the country "needs tax reform on a wide basis, but not gradual approach for the purpose of stimulation of economic growth".
The real gross internal product (GIP) as predict, grows for two percent in 2016-17, and for 2.75 percent in 2017-18. The main cash deficit as expect, will fall from 2.1 percent of GDP in 2016-17 to 0.5 percent in 2019-20. The net debt as it is supposed, will reach a maximum in 19 percent of GDP in 2018-19, and then will decrease for the medium-term period approximately to 10 percent. The size on recovery of the budget that took place from a general election in May, costs more than 22 billion Australian dollars (16 billion US dollars).
The treasurer Scott Morrison told that for maintenance of economic growth, the government will continue to perform the plan for workplaces and growth that will allow to raise level of living and will support a profit increase. He told that the government remains careful in taxation by high taxes of the Australian economy on the ground that it limits growth and therefore the income. This assumption provides to the government flexibility to adapt tax policy in the future, and also to make the tax plan of the entity, without influencing a medium-term provision.
Reacting to the announcement, Pearson told that Morrison "fairly avoided a temptation to reach shattering economy of growth of taxes to improve the budget result". He emphasized that "Australia must make everything that it can to receive the budget" and can't rely
On November 23 the amendment of Treasurer laws (fair and stable pension) the bill of 2016 and contributions to the pension fund (excess tax balance transfer) taxation bill in 2016 was adopted.
In joint release, the Treasurer Scott Morrison and the minister of the income Kelly O'Dwyer told: "The package of proposals on reform of pension fund contributions, the best purpose of tax benefits to make our pension system fair and stable as aging of the population and tax difficulties increase."
The legislation performs following operations:
- allows for pensioners to make, "approximation" to concessional contributions with balance below 500,000 Australian dollars;
- introduce the maximum amount of the transfer balance of 1.6 million Australian dollars, sets the amount of restriction, which person can transfer into the pension phase of the non-taxable income;
- removes "10 percent rule" (the profitable test) to provide equal conditions for access to pension fund
- contributions of tax benefits, irrespective of a situation of employment person;
- introduces tax compensation of the pension low income.
Such measures will come into force since July 1, 2017.
"Ninety six percent of people of the pension fund won't depend on these changes or will be more provided. Most of four percent of people who exert adverse impact on these changes hardly will rely on an old-age pension", ministers added.
The Australian Tax Office (ATO) has stated that the highest level of online tax innings was issued in 2016.
According to the latest ATO, more than three million Australians have filed their tax returns on time on the Internet via myTax. More than 6.5 million people filed through the tax agency. More than 100,000 people, which is used myTax, received a return on their submission until 31 October, that is, until the expiry of the deadline.
Assistant Commissioner Graham White said: "We had a lot of answers to myTax and figures show how well our system works this year, 84 percent of people also told us that this system is easy to use."
White added that it is still possible for the taxpayers, who have missed the deadline for filing claims to return, and stressed the need to do so as soon as possible. "If you are having problems with your tax return, we encourage you to contact us before we contact you. We can work with you to help you avoid penalties," he said.
White also said that taxpayers with debt as a whole should pay the outstanding amount at 21 November.
"The majority of registered agents have a program that allows them to file returns for their individual customers after the normal time -.. October 31 is now time to check with your tax agent to find out the best time for you to feed Declaration If your return leads to a debt, your Alerts can also tell you when your payment has to be made," he said.
Western Australian citizens have announced plans for "radical changes" payroll tax system of the State, which will be financed by tax increases for iron ore.
Party leader Brendon Grylls proposals outlined in his speech at the annual conference of state citizens. He explained: "According to our plan, WA Nationals increase exemption from payroll tax from AUD850,000 (USD645,873) to AUD5m during the two financial years. He will also see declining threshold for companies with between POF and AUD5m AUD7.5m, offering further tax relief."
When Grylls was elected leader in August, he said that citizens will be aimed at increasing the production of public rental agreements with Rio Tinto and BHPB iron ore iron ore from 25 cents to AUD5 per tonne. He claimed at the time that this measure will return the budget to surplus and give us the opportunity to discuss the new policy settings, as a reduction of payroll taxes for small and medium-sized businesses."
In his speech to the conference participant, Grylls confirmed that the envisaged tax reform payroll will be financed through leases trailer production. "It is our goal to put the reform of payroll tax in the longer term, however, this can not happen if the state finances are not in order," he said.
The Australian government issued the third tranche of its pension reforms, this time focusing on better targeting tax incentives.
Last Exposure Draft reduce annual non-concessional (after tax) contribution limit of AUD180,000 (USD137,165) to AUD100,000. Government still intended to introduce a lifetime limit nepilhovu AUD500,000.
In addition, people with superannuation balance over AUD1.6m no longer have the right to make non-concessional contributions from 1 July 2017.
Treasurer Scott Morrison said: "The government is on the path to reform measures were introduced to parliament by the end of the year. This will allow taxpayers to confidently make decisions about your seniority."
"The introduction of the legislation also provides for pension trustees with the confidence they need to implement these reforms."
Consultation on the draft legislation will end on 21 October.
Last month, the government published draft legislation which, if adopted, would reduce the limits on concessional contributions AUD25,000 a year, and enter the translation AUD1.6m balance to limit the people who can keep the pension phase. The legislation also reduce the income threshold at which individuals are required to pay an additional 15 percent tax contribution of AUD300,000 to AUD250,000.
Tax rules in Australia classifies financial instruments such as debt (deductible interest) or equity in accordance with their economic content. They also contain rules of integrity to prevent taxpayers from the artificial division of a single scheme for several schemes to achieve favorable tax results.
According to the Government, "the integrity of those rules were viewed to be immediate and created considerable practical difficulties for the taxpayers."
Therefore, the government issued a draft law that, if implemented, will ensure that a number of schemes are treated as a single scheme only if it accurately reflects the economic and commercial nature of schemes. This is in accordance with the recommendations adopted by the Board of Taxes and Duties.
Consultation on the proposals will be closed on November 21. The final legislation will be applied prospectively from the date of establishment, by proclamation, or six months after it receives royal assent, whichever is later.
The Australian Government has published a review of research and development tax credit.
The Australian Government has published a review of research and development tax credit.
The review was commissioned in December 2015 as part of the agenda of the Government of National Innovation and Science (NISA). The goal was to determine how the efficiency and integrity of the research and development tax credit can be improved.
The Commission has made six recommendations. They said that the government should:
- Set a single premium of up to 20 per cent non-refundable tax refund;
- Enter the maximum in order AUD2 million on an annual refund;
- Enter the one - or two percent limit for recipients of the non-refundable component of the research and development tax credit;
- If the intensity threshold is set to increase the threshold to AUD200 million of expenditure;
- Explore options for better management in the research and development tax incentives, including the establishment of a single application process, developing a single framework of this program, as well as the optimization of processes to verify compliance with established rules and regulations;
- Save the current definition of eligible activities and expenses in accordance with the law, but to develop new guidance, case studies, as well as government regulations to give greater clarity within these eligible activities and expenses.
Public consultation on the recommendations will be open until 28 October. The Government will conduct further discussions after all materials are received, in November and December. And give its final decision until the end of March 2017.
The Australian Government has published draft legislation for the implementation of the second tranche of the proposed reforms to the taxation of pension contributions.
As part of the reforms, the government will:
- Implement AUD1.6 million balance transfers peaks to a limited number of people could be held in a tax-free retirement phase;
- Lowering the preferential contributions AUD25,000 a year;
- Lowering the income threshold at which individuals are required to pay an additional 15 percent tax contribution from AUD300,000 to AUD250,000;
- Allow individuals with remnants of at least AUD500,000 "carry on" Do not use the top of the privileged "space" for up to five years;
- Make sure that the transition to retirement income stream has access for the purpose for which they were designed, not to tax minimization; and:
- To abolish the anti money-losing situation.
In a joint statement, Treasurer Scott Morrison and Minister of Revenue Kelly O'Dwyer said: "The reforms will make the system fairer, more flexible and more stable majority of Australians - 96 percent of people with pension - or will be completely switched off or will not be affected by these changes.".
Consultation on the proposals will be completed on 10 October.
The company BHP Billiton said its tax dispute with the Australian tax authorities (ATO) is a matter of assessment and does not entail tax evasion.
BHP Billiton Annual Report for 2016 shows that at present it has a transfer pricing dispute with the ATO for the amount of tax payable as a result of sales of Australian products in our marketing business since 2003.
According to the report, the dispute relates to the price at which products were sold to an Australian.
The report notes that BHP Billiton has made a partial payment for these corrected estimates of 50 percent of the basic tax. She added that the assessment of the dispute is essential for calculating the amount of responsibility for the now defunct useful resources rental tax (MRRT). The company has received refined assessment MRRT total.
The report said that BHP Billiton disagree with the position of ATO and object of the corrected estimates. The Company intends to continue to defend its position and will initiate legal action if necessary.
In response to the analysis of documents Panama appear serious financial crime task force Australia (SFCT) held a "week of action" against persons suspected of tax evasion.
SFCT made 15 unannounced visits to the states of Victoria and Queensland, and executed three search warrants.
SFCT was launched in July 2015 and is headed by Australian Federal Police and a representative of the tax office, the Australian Commission on Crime Australian transaction reports, Securities and Investment Commission of Australia.
Minister revenues O'Dvayer Kelly said: "Our government built a profile on the basis of more than 1000 Australians found in the leak, and review the information provided to us by other tax jurisdictions, we found taxpayers and advisers related to tax evasion, illegal drugs and corruption."
She said at a press conference: "Some of these Australian taxpayers include dignitaries also include professional intermediaries, which include people who work as accountants and lawyers. The information shown significant tax avoidance arrangements that promoters have to their customers. Some of them are very complex and have several levels of offshore companies, fake shareholders, and other methods to hide the beneficial owners of these accounts and funds."
"Where offshore used for tax evasion, avoidance of corporate responsibility, camouflage and concealment of unexplained income, promotion of criminal activities and the laundering of proceeds of crime. The Australian Tax Office will work with international partner’s law enforcement agencies to investigate and improve tax evaluation and make sure they ar held accountable."
Also determined that the amount of cash turnover associated with the Australian organization referred to in the documents of Panama more than AUD2.5 billion (USD1.9 billion).
According to documents Panama was mixed with domestic and international banks to build a picture of offshore services providers, if they belong to Australian individuals and businesses.