...Parliament of Australia Department of Parliamentary Services Parliamentary Library Information, analysis and advice for the Parliament RESEARCH PAPER www.aph.gov.au/library 26 May 2010, no. 17, 2009–10, ISSN 1834-9854 Budget Review 2010–11 Last year’s Budget was framed amid a sharply deteriorating world economy which was considered the most challenging global economic conditions since the Great Depression. In 2009, the global economy contracted for the first time in the post-war era. In contrast, Australia grew by almost 1.5 per cent supported by monetary and fiscal policy stimulus, a well-functioning banking system, and strong growth in a number of East Asian economies. The third Rudd Government Budget, presented on 11 May 2010, was developed within an improving but still uncertain outlook, with events in Greece and other European Union countries reminding us of the risks to the global economic recovery. Strong economic growth in China and India is expected to continue to flow throughout the region and, despite a slower pace, the US is leading the recovery among our advanced economy major trading partners. Global economic growth is in the early stages of recovery but we should remain cognisant of the precarious economic environment which is continuing to challenge government policy makers around the globe. Once again the Parliamentary Library has produced the annual Budget Review that examines the key features of a selection of crucial measures contained...
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...compare relevant statistics, discuss the relevant economic model and present a critical analysis on the effectiveness of an alcopops tax. The term binge drinking is defined as the consumption of a sufficiently large amount of alcohol, which places the drinker at increased risk of experiencing alcohol related problems and to places others at risk of second hand effects (Wechsler & Nelson, 2001). Binge drinking is measured as the consumption of five or more drinks, in a row at some stage, within a two-week period for men and four or more drinks in a row for women (Wechsler & Nelson, 2001). Youth binge drinking is perceived to be an issue from a societal perspective due to the dose-related adverse consequences. The inappropriate consumption of alcohol by youths is directly linked to a range of problems to society, including health issues, lower life expectancy, accidents, reduced workplace productivity, drink driving, violence and other forms of crime (Collins & Lapsley, 2008). Hospital records of alcohol related harm to youths show an increased of up to 70% when drinking alcopops (University of Queensland, 2013). The economic costs to society for binge drinking in 2010 was estimated to be in excess of $14 billion (Figure 1) (Australian Institute of Criminology, 2013) (Manning & Smith, 2013). Figure 1: Cost to society of alcohol related issues 2010 (Australian Institute of Criminology, 2013) Australia has had many policies and plans to reduce alcohol consumption, including the National...
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...Establish the payroll system Submission details Candidate’s name | | Phone no. | | Assessor’s name | | Phone no. | | Assessment site | | Assessment date/s | | Time/s | | The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Performance objective The candidate will demonstrate the ability to establish procedures for the management of payroll. Assessment description In response to the scenario provided, you will develop a step-by-step plan to establish a payroll system, develop security procedures, establish control measures, and ensure procedures guarantee substantiation of claims for allowances. Procedure 1. Consider the scenario and task provided. 2. Consider the design of a payroll system to cover organisational and legislative requirements. 3. Prepare a planning document in which you outline steps you would take to establish the payroll system. Your plan must include a step-by-step description of review, design, development and implementation. Include: a. a survey of legal environment b. the development of policies and procedures (refer specifically to those three developed in steps 4–5 of this procedure. c. communication/consultation. 4. Write a policy and procedures document to ensure security of employee payroll information...
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...familiarity with computer through all different kinds of electronic devices. Without information that is passed between individuals, organizations and in this case a startup technology company, there would be no use for electronic devices. Information, or pieces of information called data, is moved around the world at what seems the speed of light. Imperative as it seems more so now a days from sales agents to the average Joe information needs to be accessible in seconds. Having the accurate information as well having the ability to organize and recall data about a particular subject is part of this papers makeup. The other portion of this paper is establishing a set of plans for the business to come into its own. Through discussing what type of technology and product along with a business plan to set this business in motion in Tasmania Australia is the focus of this paper. A start-up company’s way of making sure they become viable and a respected entity is through having a solid product and business plan. For this instance the technology company being discussed centers around the warehousing of data from clients. Data warehousing is the secure storage of electronic information in a central repository to be accessible in a backup or reporting capacity. Data warehousing is used by financial institutions, education service providers and governmental agencies to name a few. An example of this technology being used is in the Broward County school district in Florida...
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...Evaluating the tax incentives for foreign investors policy Reporting to the Manufacturers league Executive Summary This report has been written in response to the government’s proposed tax incentive policy for foreign multi-national corporations to increase foreign direct investment within Australia. The report draws attention to the reasons behind the government’s proposal. These include the slow growth trends of the manufacturing industry, restoring the dropped level of foreign investment caused by the global financial crisis as well as a desire to increase levels of employment within the manufacturing sector. It continues by drawing attention to the resultant competitive issues that may be caused by such a move as well as issues that may arise due to inflation. It also draws attention to the tendency for foreign investment to result in less government intervention which may affect the industry in the longer term. It is recommended that: * The government increase the breadth of its proposal to all investors in the manufacturing industry so as to reduce competitive pressures on local manufacturers. * The government increases investment in training to provide a skilled workforce and reduce inflationary wage pressures. Introduction This Report shall be to determine whether or not tax incentives, with relation to foreign direct investment (FDI), are beneficial, holistically. First we must say a word about the nature of FDI. FDI can be defined as “....
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...What are the options? pricing and taxation policy reforms to redress excessive alcohol consumption and related harms in australia natacha Carragher & Jenny Chalmers1 nsW Bureau of Crime statistics and research 1 Natacha Carragher, Research Fellow, ATCL, BSc(Hons), PhD. Jenny Chalmers Senior Research Fellow, BEc(Hons), MEc, PhD. Drug Policy Modelling Program, National Drug and Alcohol Research Centre, University of New South Wales. Address for correspondence: Dr Natacha Carragher, National Drug and Alcohol Research Centre, University of New South Wales, Sydney, NSW 2052. Tel: 02 9385 0249. Fax: 02 9385 0222. Email: n.carragher@unsw.edu.au 2011 Published by the NSW Bureau of Crime Statistics and Research Attorney General’s Department Level 8 St James Centre 111 Elizabeth Street Sydney 2000 Australia Phone: +61 (2) 9231 9190 Fax: +61 (2) 9231 9187 Email: bcsr@agd.nsw.gov.au Website: www.bocsar.nsw.gov.au ISBN 978-1-921824-33-3 This report is available in pdf format on our website and may be provided in alternative formats. Please contact the Bureau on 02 9231 9190 or email us at bcsr@agd.nsw.gov.au © State of New South Wales through the Attorney General’s Department of NSW 2011. You may copy, distribute, display, download and otherwise freely deal with this work for any purpose, provided that you attribute the Attorney General’s Department of NSW as the owner. However, you must obtain permission if you wish to (a) charge others for access to the work (other than...
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...MT570 Taxation (Current Topics) Assignment 2 Question 1 The draft tax determination TD 2009/18 – Income Tax: Can a private equity entity make an income gain from the disposal of target assets it has acquired? – deals with private equity entities disposing of Australian target assets, and per this draft determination, the ATO’s view on this is that yes a private equity entity can make an income gain on the disposal of such assets, although they do acknowledge that each case will depend on fact and circumstance. The draft determination basically states that where a foreign private equity entity that is not in a treaty country carries on a business of deriving a profit from the sale of an Australian asset then the profit is ordinary income under section 6-5 of the ITAA 1997 which is taxable in Australia and is not exempt as a capital gain. Whether a private equity entity can make an income gain on the disposal of its target assets will be a question of fact and circumstance. It will need to be determined on what account the asset was being held on and in order to determine this. The investment strategy and the form and substance of the private equity entity must be looked at in detail and at length to determine this. Basically, if the intent of the private equity entity is to acquire the target asset, become a long term investor and derive dividend income from its shares then the gain made from disposal would be held on capital account as the disposal would be...
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...What are the options? pricing and taxation policy reforms to redress excessive alcohol consumption and related harms in australia natacha Carragher & Jenny Chalmers1 nsW Bureau of Crime statistics and research 1 Natacha Carragher, Research Fellow, ATCL, BSc(Hons), PhD. Jenny Chalmers Senior Research Fellow, BEc(Hons), MEc, PhD. Drug Policy Modelling Program, National Drug and Alcohol Research Centre, University of New South Wales. Address for correspondence: Dr Natacha Carragher, National Drug and Alcohol Research Centre, University of New South Wales, Sydney, NSW 2052. Tel: 02 9385 0249. Fax: 02 9385 0222. Email: n.carragher@unsw.edu.au 2011 Published by the NSW Bureau of Crime Statistics and Research Attorney General’s Department Level 8 St James Centre 111 Elizabeth Street Sydney 2000 Australia Phone: +61 (2) 9231 9190 Fax: +61 (2) 9231 9187 Email: bcsr@agd.nsw.gov.au Website: www.bocsar.nsw.gov.au ISBN 978-1-921824-33-3 This report is available in pdf format on our website and may be provided in alternative formats. Please contact the Bureau on 02 9231 9190 or email us at bcsr@agd.nsw.gov.au © State of New South Wales through the Attorney General’s Department of NSW 2011. You may copy, distribute, display, download and otherwise freely deal with this work for any purpose, provided that you attribute the Attorney General’s Department of NSW as the owner. However, you must obtain permission if you wish to (a) charge others for access to the work (other than...
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...Contents 1.0 Introduction 1 2.0 The Context 2 3.0 Economic Analysis 3 4.0 Critical Analysis of Alcopops Tax 4 4.1 Success of the Tax 4 4.2 Limitations 5 5.0 Alternative Policies 6 5.1 Floor Price 6 5.2 Education 6 6.0 Conclusion 7 Reference List 8 1.0 Introduction The British Medical Association notes that alcohol is a psychoactive preparation that, when misused, can cause significant harm to individuals and society (2008). Similarly,...
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...The objective of this paper is to argue the need for tax reforms specifically aimed at addressing global issues in an increasingly interconnected world where tax laws are not designed for the digital age. It highlights the issues faced by countries due to ‘Base Erosion Profit Shifting ‘. The emphasis is mainly on two taxes, namely, ‘Diverted Profit Tax’ and ‘Digital Goods and Service Tax’, which are recently mentioned in the Australian Budget 2015. Organisation for Economic Co-operation and Development’s (OECD) involvement to concrete changes to avoid Base Erosion Profit Shifting (BEPS) has been mentioned. UK’s ‘Google tax’ and the ‘Double Irish Dutch sandwich’ tax evading structure is explained in an effort to elucidate the steps taken by Australian Government to encounter issues similar to them. Facts are stated with regard to the current Australian economy meshing these two new taxes into the existing taxation system. A conclusion is drawn concisely assessing the enforcement of ‘Digital GST’ and ‘Diverted Profit’ taxes and their probable effects on the economy. 1. The need for comprehensive tax reform One of the prime ways of generating economic revenue is to improve the tax capabilities. A good tax system promotes sustainable growth, provides key platform for trade and investments and strengthens the accountability of government to their citizens. The growing complexity in business and technological advances has made it difficult for the existing tax system to keep in pace...
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...Business, La Trobe University, Bundoora, Australia Abstract Purpose – This study seeks to examine the impact of Australian equivalents to international financial reporting standards (A-IFRS) on the accounts of small-, medium- and large-sized firms. Design/methodology/approach – For 135 listed Australian entities, the half-yearly accounts ended 30 June 2005 are examined to identify the effects of A-IFRS. Data are gathered on the change in major balance sheet and income statement elements, the major reconciling items and earnings variability. Findings – Findings show that more than half of small firms have no change in net income or equity from A-IFRS, and that there is an increase in the number of adjustments to net income and equity with firm size. The study also finds that A-IFRS has increased net income for small- and medium-sized firms. Equity has increased (decreased) under A-IFRS for small (large) firms. Small firms experience higher earnings variability than medium-sized or large firms under A-IFRS. Research limitations/implications – The sample is limited to 31 December reporting date firms and not all A-IFRS must be complied with when firms restate their comparatives. Practical implications – Analysts, auditors and other account users should be aware that the effects of A-IFRS are correlated with firm size. Originality/value – This is the first Australian empirical paper on the effects of A-IFRS. It raises doubts about the contentions of some that A-IFRS will have widespread adverse...
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...The case of Crown Insurance Services brings to the light the many issues now associated with the changing business environment, the questions that arise whether current existing law regrading residence and source is no longer fitting and whether its application may be conducive for cases where misappropriation is intentional. This paper considers some of the questionable reasoning used today by the courts in determining residence and source on companies incorporated overseas. The case of Crown is not dissimilar to that of Malayan Shipping Co, whereby an Australian resident (Mr Sleigh) the majority shareholder of a taxpayer company incorporated overseas, was considered to be the managing director and agent who alone could decide upon the entering of contracts by the company in Australia. The company was found to derive its income and have tax residency in Australia “despite the directors being non-resident and meeting outside Australia” due to central management and control being held by an Australian resident. Similarly in Crown several indicators of absolute authority held by an Australian resident were presented, including “All of the proposals were prepared by Mr. Pattenden on his lap top” and “Mr. Pattenden prepared a group insurance proposal and prepared and issued a policy”, these statements seemingly present Mr. Pattenden as being ‘the brains behind operation’. The commissioner pursued this as it had been in Malayan shipping, however several factors prevented the...
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...into three key areas: the Carbon tax legislation represents a creation of a new social reality and the impact on sustainability in business. The carbon tax would be represented in the financial reports. To introduce the particular company and legislation impacts on that company. The Framework shows that the financial reporting is present relevant and reliable information. Some experts considered that the insufficient information on financial reporting impact on social reality. Thus, the Sustainability reporting occurs to fix up the fanatical reporting gaps. Introduction Financial reporting is both a reflection and creator of our perception of social reality and consistently evolving. Currently, accounting system is not only focus on the data of how much company earns, it also shift towards to social responsibility. As the dramatic of pollutions, especially that of the developing nations is extremely harmful not only to the surrounding environment, but also to the inhabitants of that country as well. Thus, financial reporting take concern on such problems and create out Sustainability reporting which help to reduce the pollutions. This essay is to discuss the both reflection and creator of financial reporting in reality social and the impact on sustainability in business. It will focus on how the carbon tax will help to reduce the carbon dioxide (CO2) emissions. First, to introduce the background of financial reporting; and then what is carbon tax and affect to society; the last...
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...transparency of tax return Addressed to: Grant O'Brien (Chief Executive Officer of Woolworths) 19/04/2015 Word count: 1379 Topic: Why does the Australian legislator require additional ATO disclosures beyond AASB 112? Table of content 1. Executive summary 2. Introduction 3. Summaries of the contents of Paragraph 79, 80, 81(c), and 84-86 of AASB 112 4. The shortage in Woolworths’ present financial report 4.1 Accrual basis V.S. Cash basis 4.2 Tax information not separately disclosed correspond to each jurisdiction 4.3 How the ATO amends the vulnerability of AASB 112 5. Recommendations to Woolworths refer Rio Tinto’s tax report 5.1 How to achieve an easier assessable tax report for the public 5.2 How Woolworths can obviate aggressive tax avoidance 6. References 1. Executive Summary AASB 112 has been implemented to give guidance to companies about how to disclose related tax information, also providing surveillance to the phenomenon of tax evasion. In a vastly developing economy, various large and multinational companies have found ways of escaping by paying minimal taxes. For example, shifting revenue to a lower tax rate country or manipulating past tax losses avoids huge amounts of tax payment. The ATO published disclosure requirements in 2014 aiming to eliminate this phenomenon. The main discrepancy between financial statement and company’s income tax is tax under financial statements were calculated based on accrual basis whereas tax under income...
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...Tutorial Word Count: 1,364 Table of Contents 1. Introduction 2 2. Corporate Social Responsibility 3 i. TRIPLE BOTTOM LINE 3 ii. GOOGLE'S CSR REFUSAL/ACCEPTANCE: DEFENSIVE STANCE 4 3. Conclusion 6 4. ARTICLE– Google paying a fraction of the tax in Australia it should 7 5. REFERENCEs 9 1. Introduction It is without a doubt that globalisation has been the driver of the increased link between nations, allowing for the operation of many organisations in borderless economies. As globalisation continues to impact organisations, they are forced to undertake new and innovative approaches in order to maintain or gain a competitive advantage. As a result of this, many ethical issues have come to light, so it is important to acknowledge organisations adopting methods of corporate social responsibility. Corporate social responsibility (CSR) essentially encompasses the refraining from any action that will attract unfavourable publicity due to its social unacceptability (Carroll, 2010). The concept of CSR has proven to be an area of focus in recent times, especially in regards to consumers and stakeholders. This report will explore Google Inc’s corporate social responsibility when implementing strategies in tax dealings in order to reap the benefits of globalisation, especially as CSR’s importance and significance continues to grow. (Carroll, 2010). Google is a well-renowned American multinational technology company which provides a service to individuals worldwide...
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