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Articles on Tax

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Because the threshold for the Medicare levy exemption is based on family income, the reform will reinforce the move towards higher effective tax rates on low income second earners in a family. Joe Castro/AAP

Shifting the tax burden to middle-income earners will undermine jobs and growth

With its recent budget changes, the government is proposing a rise in marginal tax rates across a wide band of middle incomes and a marginal tax rate cut for the top.
With high capital costs linked to petroleum and gas infrastructure, collection of PRRT funds for regional development may be delayed for several years. Phil Noble/Reuters

Government’s oil and gas tax response will leave regional communities at a loss

Local communities are likely to be dissatisfied with the report from the PRRT review because its recommendations only apply to future projects and won’t herald any changes in the budget.
If Australia adopted a similar approach to the Hong Kong to eliminate debt loading abuse, United States oil and gas giant Chevron would have been denied A$6.275 billion in interest deductions. Ray Strange/AAP

Chevron is just the start: modelling shows how many billions in revenue the government is missing out on

New modelling shows governments need to ensure that corporations benefiting from the use of Australia’s resources, are contributing the same as they do in other jurisdictions.
The actual corporate tax rate in Australia is considerably lower than 30% due to the high utilisation of imputation credits by shareholders. Mick Tsikas/AAP

The government’s company tax cut win a triumph of politics over economics

The company tax cut may signal to the world that Australia wants to be competitive on corporate tax, but it won’t make much of a difference to our largest businesses and multinationals.
Businesses are expanding into new markets, so employees increasingly have to move between different geographical locations. www.shutterstock.com

Tax laws are not keeping up with our globally mobile workforce: new research

New research finds there are significant risks and uncertainties in the complexities of national and international tax systems as applied to internationally mobile employees.
Assets held until the retirement phase in super, can then be sold with no, or minimal, capital gains tax payable. www.shutterstock.com

Despite superannuation changes, one tax loophole remains

The government has yet to address a major incentive to put assets into super and hold them until the retirement phase.
Australian voters rejected carbon taxation. But some US conservatives are now embracing it. AAP Image/Paul Miller

Tax and dividend: how conservatives can grow to love carbon pricing

Taxing carbon has always been a tricky political sell for conservatives. But a group of establishment US Republicans is touting the idea of a carbon “tax and dividend” as a way to break the deadlock.

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