Labor’s 2017-18 Federal Budget response
In the Budget Reply speech by the Federal Leader of the Opposition, Bill Shorten, and in the address to the National Press Club by Chris Bowen, Shadow Treasurer, it was stated that the Opposition will:
· support the Government’s Bank Levy
· support the increase in the Medicare levy but restrict it to the top two tax brackets
· extend the Temporary Budget Repair levy
· target multinational companies by closing loopholes
· reform negative gearing and capital gains tax
· cap the amount an individual can claim as a deduction for managing their tax affairs to $3,000, and
· introduce a new set of laws to target those who aggressively minimise their tax.
Petroleum Resource Rent Tax Review
The Government has released the report of the review into the operation of the Petroleum Resource Rent Tax (PRRT), crude oil excise and associated Commonwealth royalties. The report highlights improvements that can be made to the PRRT over the longer term, and does not recommend changes to the crude oil excise or Commonwealth royalty schemes. As the recommendations did not have any immediate material impact on last month’s Federal Budget, the Government will continue to accept comments on the recommendations and provide a considered response in the next few months.
Supporting small business set-up
The Minister for Small Business has released the Government’s response to the final report of the Productivity Commission’s inquiry into Business Set-up, Transfer and Closure. The Government has supported the vast majority of the report’s recommendations which were designed to address barriers to business entries and exits to drive efficiency and economic growth.
Re-appointment of Commissioner of Taxation
The Treasurer and Minister of Revenue and Financial Services have announced the re-appointment of Chris Jordan as the Commissioner of Taxation for a second term to conclude 29 February 2024. Mr Ramez Katf was also appointed as the Second Commissioner of Taxation from 1 May 2017 to 30 April 2024. Mr Katf will also continue in his role as Chief Information Officer at the ATO.
Taxation revenue statistics for 2015-16
The Australian Bureau of Statistics has released the Taxation Revenue statistics for 2015-16. Total taxation revenue collected in Australia increased by $18,587m (4.2 per cent) from $446,137m in 2014-15 to $464,724m in 2015-16. This was driven by a $6,506m (2.5 per cent) increase in taxes on income and $5,656m (5.4 per cent) increase in taxes on provision of goods and services. In relation to the tax mix for the 2015-16 financial year, taxes on income represented 57 per cent of total taxation revenue for all levels of government, and taxes on the provision of goods and services (including the goods and services tax (GST)) represented 23.7 per cent.