THE House of Representatives Standing Committee on Economics today presented the report of its inquiry into Tax Deductibility.

The committee’s review focused on enhancing compliance in relation to tax deductions. Committee Chair, Mr David Coleman MP, said ‘the ATO identified $100 million of abuse in a single year through a review of the Work Related Expenses claims of about one in one thousand taxpayers. The committee sees considerable scope for improvement in this area and has recommended the ATO review its compliance activity in relation to WREs.’

In addition, the committee has recommended that the ATO undertake a detailed review of tax deductions to identify areas that are open to systemic abuse and overclaiming, and recommend amendments to law or policy where appropriate.

Mr Coleman said ‘while the committee sees opportunities to improve the operation of the tax system, and has recommended changes to strengthen compliance, the committee supports the ongoing ability of Australians to claim legitimate deductions.’

The committee recommended:

• The Australian Taxation Office (ATO) review its compliance activity in relation to WREs.
• The ATO be instructed to analyse each detailed subcategory of tax deductions and identify areas that it believes are particularly open to systemic abuse and overclaiming, ranking these in order of the size of the financial risk they represent to Government revenue, and recommending amendments to law where appropriate.
• As matter of priority, The Treasury provide a clear estimate of the actual cost to Government revenue of WREs so as to properly inform policy in this area.
• The ATO continue with technological development and progress on pre-filling of returns to support the implementation of the reform agenda and to simplify taxpayers’ interaction with the tax system, with the eventual goal to minimise, and ultimately remove, the need for taxpayers to amend pre filled returns.
• The Government continue its important work on the implementation of the G20/OECD Base Erosion and Profit Shifting (BEPS) recommendations to further strengthen Australia’s rules addressing tax integrity.

The report can be accessed from the Committee’s website.

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

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HOW will driverless vehicles affect agriculture and regional Australia? How will their presence be felt in Australia’s capital cities?

The Innovation Committee’s driverless vehicles inquiry aims to find out at a hearing in Canberra today.

Committee Chair Michelle Landry MP says the potential effects of the introduction of driverless vehicles in Australia are wide ranging.

“From the farm to the city, we can expect driverless vehicles to shape industries, employment, and access to services and communities,” Ms Landry said.

“The Committee will also consider the environmental impacts in both rural areas and cities.”

The public hearing will include witnesses from the National Farmers’ Federation and the Council of Capital City Lord Mayors.

The Committee will also be hearing from academics to discuss some of the likely impacts of driverless vehicles, including public acceptance, ethics questions, health benefits and broader social changes that access to driverless vehicles might affect.

This hearing will be the ninth the Committee has held for its inquiry into the social issues relating to land-based driverless vehicles in Australia.

Public hearing details: 10.45am – 12.30pm, Wednesday 14 June, Committee Room 1R1, Parliament House, Canberra

10.45 – 11.25am: Dr Damith Herath, Human Centred Technology Research Centre, University of Canberra and Professor Simone Pettigrew, School of Psychology and Speech Pathology, Curtin University.
11.25am – 11.55am: Council of Capital City Lord Mayors
11.55am – 12.30pm: National Farmers’ Federation
12.30pm: Close

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. 

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THE Liberal National Party’s (LNP) support for a new ultra-supercritical coal-fired power station in North Queensland would deliver essential base load power and help to create hundreds of regional jobs, according to the Queensland Resources Council (QRC).

"In its 2017 Budget reply speech, the LNP’s pragmatic approach to the energy mix would secure cost-effective electricity with new coal technology for North Queensland and the state," QRC chief executive Ian Macfarlane said.

"If this region is to develop to its full potential and be the powerhouse of northern Australia, it must have its own stable power generation near Townsville to support the investments being made in hydroelectric and solar farms.

"The Palaszczuk Government turned away from a technology neutral approach and ruled out high efficiency, low-emission (HELE) plants in its energy plan, despite the global investment into the latest coal-fired power generation in countries such as Japan, Germany, China and India," Mr Macfarlane said.

"There are more than 1,000 of these HELE units currently delivering reliable and affordable electricity around the world and more than 1,200 planned, or under construction. Queensland has substantial reserves of high-quality, lower emission coal and it should take advantage of this resource to increase its international competitiveness.

"Growing the economy and attracting industry and jobs is a great way to make sure North Queensland grows."

www.qrc.org.au

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THE Trade Sub-Committee of the Parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) will hear from the Minerals Council of Australia at a public hearing today for its inquiry into Australia’s trade and investment relationship with the United Kingdom.

The Minerals Council of Australia (MCA), which is the peak industry body for the Australian mining sector that exports nearly $5 billion worth of minerals and energy to the UK, believes the decision by the UK to Brexit from the European Union may create some uncertainties for companies looking to London as a global trading hub for gold, silver and other industrial metals.

The MCA’s submission to the inquiry states the Australian government needs to consider how entering into negotiations for an FTA with the UK may impact on other Australian trade priorities.

According to the MCA submission, the City of London is also one of the world’s most significant financial centres providing important capital for the Australian mining sector so any changes to its role may impact on future investment. The MCA believes the monetary threshold which triggers screening of business investments from the UK should be increased from $252 million to the $1,094 million that applies to investors from FTA partner countries.

Public hearing details: 10:05am - 11:00am, Wednesday 14 June, Committee Room 2S1, Parliament House, Canberra

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. 

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