CHARTERED Accountants Australia and New Zealand has called on the Australian Labor Party to embrace indirect tax reform if it is to develop the sustainable tax base necessary to pay for the many important social investments outlined by Opposition Leader Bill Shorten in his speech today (July 30).

Head of Tax, Michael Croker, said Chartered Accountants ANZ would continue to advocate for a broad base, low rate personal tax system, with greater reliance on indirect taxes such as GST and stronger measures to address tax evaded in the black economy.

Mr Croker noted Mr Shorten’s references to inequality but expressed disappointment over the lack of a comprehensive plan to tackle this issue by more broadly reforming Australia’s tax and transfer payment systems.

“What we’re seeing from the major parties is a piecemeal approach, with a bit of extra income tax tacked on here and a specific deduction denied there,” Mr Croker said.

“The message conveyed is that something is being done to someone else to tax them more heavily.

“Meanwhile, Australia’s income tax system remains dangerously over-reliant on PAYG collected from Australians in the top tax brackets and company tax paid by a comparatively small group of large companies.”

Nonetheless, Chartered Accountants ANZ had already spoken to Andrew Leigh’s office and offered to work with the ALP to flesh-out its 30 percent minimum tax proposal for discretionary trusts before the next Federal Election.

“Today’s speech and accompanying Fact Sheet are light on specifics for a legitimate structure used widely for business, personal investment and family purposes,” Mr Croker said.

“Accountants and their clients seek certainty, particularly when new policies impact existing structures established in accordance with laws now described by those who enacted them as unfair.

“There are already a number of emerging questions about Labor’s model”, he said.

They include:

•   The equity of treating active small businesses differently from farmers.

•   Addressing the potential for over-taxation (compared to the tax outcome if the beneficiary simply derived the income directly), particularly for business trusts.

•   Restructuring relief for those who may wish to exit discretionary trust structures.

•   The scope of carve-outs for farm trusts, testamentary, disability and charitable trusts.

Mr Croker said Labor’s minimum tax would start many conversations, and said there could be concern in some quarters that minimum tax might be embraced for other taxpayer segments.

He said Chartered Accountants in Australia would be disappointed by the disparaging references to their profession in Mr Shorten’s speech today.

“With his parliamentary and ministerial experience, Mr Shorten knows better than most the role CAs play in helping Australians and businesses prosper. He would also know that Chartered Accountants ANZ is a highly trusted contributor to consultation forums established by government and regulatory agencies such as the ATO, advocating in the public interest.” 

www.charteredaccountantsanz.com

ends

THE Select Committee on Regional Development and Decentralisation is calling for submissions to its inquiry.  The Committee will examine best practice approaches to regional development, the decentralisation of Commonwealth entities, and supporting corporate decentralisation.

Committee Chair, Dr John McVeigh MP said, “The Committee’s inquiry is wide ranging and will explore ways to increase the growth and prosperity of regional and rural Australia.  While decentralisation of Commonwealth entities has been identified as a potential means to achieve this, the Committee wants to examine, more broadly, how public and private investment can assist in building and sustaining our regional communities.

 “So much of our economic success rests in the resources and work of our regional towns and cities. It is important that we examine ways to better support these communities and to strengthen their social and economic future.”

The Committee plans to hold public hearings across regional Australia to learn more about best practice approaches to regional development, and decentralisation opportunities.

Submissions to the inquiry will close on Friday 15 September 2017.  To make a submission, visit the Committee’s website and follow the prompts. The Terms of Reference can also be found on the Committee’s website, or by contacting the Committee Secretariat.

An issues paper is expected to be tabled in Parliament on 31 August 2017.

Interested members of the public may wish to track the committee via the website. 

ends

LEADER of the Opposition, Bill Shorten MP, has been confirmed to speak at the Vodafone National Small Business Summit, hosted by the Council of Small Business Australia (COSBOA) taking place at the Events Centre Collins Square, Melbourne on 23-25 August 2017.

Mr Shorten will open the Summit Breakfast on Friday, 25 August and discuss current issues facing more than two million small businesses across Australia.

Peter Strong, CEO of COSBOA commented on the privilege to host Mr Shorten at Australia’s premier policy event discussing the current and future needs of small business owners.

“We are honoured to welcome Mr Shorten to speak at the Vodafone National Small Business Summit for the third year. 

“In 2017 the Summit will focus on ‘Collaboration and Communities’ and discuss how senior politicians, policy makers and industry leaders can come together to build and strengthen partnerships and secure the future of small business growth in Australia,” said Mr Strong.

Program highlights include:

Small Business Banking and Finance, with:

• Hon. Philip Dalidakis, Minister for Small Business, Innovation and Trade
• Kate Carnell, Australian Small Business and Family Enterprise Ombudsman
• Anna Bligh, CEO, Australian Bankers' Association
• David Gandolfo, Deputy Chair, COSBOA

Big and Small Working Together, with:

• Jennifer Westacott, Chief Executive, Business Council of Australia
• Grant King, President, Business Council of Australia
• Paul Nielsen, Director and Chairperson, COSBOA

Our Regulators – Can Their Jobs be Easier and Will That Make Our Jobs Easier?  with: 

• John Price, Commissioner, Australian Securities and Investments Commission
• Natalie James, Fair Work Ombudsman
• Dr Michael Shaper, Deputy Chair, Australian Competition and Consumer Commission

Export Opportunities And Other Business Via The Web, with:

• Richard Flanagan, Head of Business Marketing, Google Australia and New Zealand

The Role of Business Associations in Modern Society, with:

• Justice Iain Ross, President, Fair Work Commission
• Sandy Chong, CEO, Australian Hairdressing Council and Director, COSBOA
• John Hart, Executive Director, Restaurant & Catering Australia
• Julie Owens MP, Shadow Assistant Minister for Small Business

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au

To celebrate the commencement of the Summit, Small Business owners are invited to attend the Small Business Start-Up Reception from 6pm-8pm on Wednesday, 23 August 2017. The event will provide an opportunity for owners to hear from Peter Strong, CEO of COSBOA and network with industry leaders and key decision makers. A panel on the evening will highlight the next generation of employers and innovators and discuss what more our education system can do to support entrepreneurship.

THE House of Representatives Standing Committee on Communications and the Arts will conduct a public hearing in Melbourne this week as part of its inquiry into factors contributing to the growth and sustainability of Australia’s film and television industry.

The Chair of the committee, Mr Luke Howarth MP, stated that ‘we will be hearing the perspectives of the Victorian Government and other agencies and businesses based in Melbourne.’

‘The Committee looks forward to discussing the challenges and opportunities facing our film and television industry with these key participants’ added Mr Howarth.

Public hearing details: 9.15am-3.30pm, Wednesday, 26 July 2017,
Meeting Room G6, Victorian Parliament Offices, Ground Floor, 55 St Andrews Place, 
East Melbourne

9.15am       Victorian Government
10.00am     Entertainment Assist
10.45am     Village Roadshow Limited
11.45am     Victorian Film & Television Industry Working Party
12.15pm     Iloura
1.30pm       Studio Moshi
2.00pm       Melbourne International Film Festival
2.30pm       White Hot Productions Pty Ltd
3.00pm       Australian Children's Television Foundation
3.30pm        Finish

The hearing will be broadcast live at aph.gov.au/live.

Interested members of the public may wish to track the committee via the website. 

ends