Australian budget

Paul Kelly makes plenty of sense today: The old empires are striking back.

Via the AFR: Low-income retirees caught by Labor’s plan to scrap cash refunds for excess dividend imputation credits could be compensated by other opposition policy measures – possibly including changes to the deeming rate, which is used to determine the level of a pension based on the income from assets.

Labor has proposed a number of changes to franking credits paid on dividends.

There’s a transition underway in politics that was quite unexpected a few years ago.

By Leith van Onselen In 2000, former Treasurer Peter Costello made the fateful decision to allow the conversion of franking credits into cash refunds for shareholders. This enabled tax-free (mostly wealthy) superannuation holders over the age of 60 to claim imputation credits even though they pay no tax.

Via the AFR: In a second announcement to be made Tuesday by Bill Shorten, the Labor leader will promise to introduce an Australian Investment Guarantee in which all businesses in Australia will be able to immediately deduct 20 per cent off any new eligible asset worth more than $20,000.

By Leith van Onselen Yesterday, I derided the Labor Party for promising to undo the Gonski 2.0 needs-based school funding model by vowing to pork-barrel Catholic Schools to the tune of $250 million.

Via the AFR: Following a warning last week by shadow treasurer Chris Bowen that Labor again had its sights set on loopholes enjoyed by the so-called wealthy, he and Opposition leader Bill Shorten will announce today that the cash refunds will be abolished from July 1, 2019, if Labor wins the next federal election.

By Leith van Onselen I’ve noted previously how the NSW State Government has hit ‘peak stupid’ in deciding to spend $2.5 billion to demolish and rebuild the Olympic Stadium and the Sydney Football Stadium, both of which are underutilised.

By Leith van Onselen In February 2016 year I warned that the cigarettes tax – a policy adopted by both major parties in the lead-up to the Federal Election – would achieve two broad outcomes: It would fail to raise the projected revenue.

By Leith van Onselen In June last year, the Australian Senate cross-bench voted with the Turnbull Government to pass its $23.5 billion ‘Gonski 2.0″ needs-based schools funding bill.

By Leith van Onselen Yesterday in State Parliament, the Victorian Liberal Party and Greens voted 22 to 18 to block planning changes needed to construct the West Gate Tunnel.

By Leith van Onselen Deloitte Access Economics partner, Chris Richardson, has penned another article lobbying for company tax cuts, claiming the economy would benefit to the tune of $20 billion a year.

Via the AFR comes Chris Bowen speaking today: Mr Bowen says Labor will build on its announced plans to curb negative gearing, halve capital gains tax exemptions for investors, increase the top rate of income tax, and change the tax treatment of trusts.

It’s here, via Domainfax: NSW and Victoria will share a $6 billion “bonanza” from the sale of the iconic Snowy Hydro project in a deal that will pour new money into road and rail projects.

By Leith van Onselen Treasury secretary John Fraser appeared before the Senate economics committee yesterday arguing the case for the Turnbull Government’s company tax package.

By Leith van Onselen Margaret Gardner, the vice chancellor of Monash University, is the latest vested interest to bawl over the Coalition effectively ending the demand-driven university system.

By Leith van Onselen NSW Premier, Gladys Berejiklian, reportedly wooed a bunch of American business leaders in Washington spruiking the ‘benefits’ arising from the State’s massive asset recycling program.

By Leith van Onselen Prime Minister Malcolm Trumpbull has delivered a new attack on the Labor Party’s taxation policies, claiming that they will raise the tax burden on ordinary Australians by $164 billion over the medium-term.