Austaxpolicy

3 weeks ago | austaxpolicy.com | Peter Swan

Many retired Australians are covered by defined benefit schemes funded by their superannuation savings. These schemes were supposed to be very beneficial to retirees as are the unfunded defined benefit schemes provided by all governments to groups such as politicians, public servants and the military. Were they? First, a little backgroundSuperannuation deductions from your wage or salary are compulsory; and these make a sizeable and growing share of your total employee receipts.

1 month ago | austaxpolicy.com | Miranda Stewart

Media attention has revved up about the new 15 per cent tax on super, which brings tax on earnings for those with balances of more than $3 million to 30 per cent. With Labor having an overwhelming majority in the House and only needing to negotiate with the Greens in the Senate, the tax is likely to pass. No one likes a new tax, but super remains very concessional, and those with balances exceeding $3 million are way ahead.

1 month ago | austaxpolicy.com | Yuan Ping |Sonali Walpola

Analysts are sophisticated market participants who provide an expert evaluation of firms’ likely economic prospects to shareholders, lenders and other stakeholders. However, the ability of analysts to provide reliable forecasts of firm performance is challenged in the context of aggressive tax practices. Our study examines whether corporate tax avoidance affects analyst forecast accuracy in the Australian capital market.

2 months ago | austaxpolicy.com | Kate Roff

This is the second part of a two part series about the PepsiCo case, currently reserved for decision by the High Court of Australia, and what it may say about the efficacy of the general anti-avoidance rule in Part IVA of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936). Part I explained the key issues in PepsiCo. This part, Part II, details how Part IVA works, including why it was introduced and why, in 2013, the then government considered remedial amendments were necessary.

2 months ago | austaxpolicy.com | Kate Roff

On 3 April, the High Court of Australia reserved its decision in an appeal by the Commissioner of Taxation against the decision of the Full Federal Court in the PepsiCo case. This followed two days of oral argument. The case is significant for several reasons.