Thursday, March 2, 2017
The Australian Council of Social Services (ACOSS), an advocacy group that represents those involved in social welfare, has urged that the Government abolish ineffective tax concessions, introduce a sugary drinks tax, and scrap its company tax proposals.
ACOSS also put forward a number of other proposals. It advocated that, in the area of international tax, the Government should tighten the thin capitalization rules so that allowable debt deductions are based on a company's global debt-to-equity ratio; require public disclosure of the ultimate beneficial ownership of companies registered in Australia; and, from July 2018, the ATO should extend its "corporate tax transparency" data to provide information on all businesses and investment entities with an annual total income over AUD100m.
On corporate taxation, ACOSS is calling on the Government to phase out tax concessions from the disposal of small business assets; to tax private trusts as companies; and tax at the top marginal rate of income tax, plus Medicare Levy, income retained in private companies, apart from a reinvestment allowance comprising a fixed portion of the assets of the company.
The Council is also calling for a reduction in the exemption of 50 percent of personal capital gains from capital gains tax (CGT) to 25 percent over 10 years and a number of changes to the superannuation regime.