Latest news with #AustralianFinancialReview
Sky News AU
13 hours ago
- Automotive
- Sky News AU
Labor mulling family trusts and electric vehicle rebates in major tax reform shakeup for second term economic agenda
Family trusts and electric vehicle rebates are likely to be in the Labor's sights as it looks to raise revenue while delivering income tax cuts and boost the nation's budget. The Albanese government has swept into its second term with a large majority and with it, the promise of tax reform. Treasurer Jim Chalmers on Wednesday hammered in this pledge during an address to the National Press Club where he put forward Labor's case in the productivity-boosting agenda. Sources told the Australian Financial Review Labor is likely to propose higher taxes on family trusts as Treasury ramps up scrutiny of the tax-friendly investment vehicles. Many Australian families and businesses use the trusts to protect their assets and split income between beneficiaries to reap the benefits from the lower tax rates. The individuals who are the beneficiaries of a trust pay their personal income tax rate on the distributions. This means the tax paid on a trust can vary from zero per cent to 47 per cent. Labor at the 2019 election proposed a minimum 30 per cent tax rate on trusts as part of its failed swath of tax reforms, including changes to franking credits, negative gearing and capital gains tax discounts. The possibility the Albanese government is considering changes to family trusts comes as Mr Chalmers on Wednesday flagged a new road-user charge for electric vehicle drivers that would replace the fuel excise. The typical household with a car running on petrol pay more than $1200 in fuel tax while EV drivers are exempt from the levy as they don't use traditional fuel sources. 'We will also continue to work with states and territories on the future of road-user charging,'' Mr Chalmers said. 'All of this represents a big agenda on the supply side of our economy. None of these reforms are simple.' The AFR in March reported the estimated $55m cost of the EV rebate for the 2024-25 financial year had ballooned out to $564m per year in missed tax revenue. Mr Chalmers was also questioned on possible changes to GST ahead of Labor's upcoming productivity roundtable - where Australia's economic agenda will come under the microscope. 'I suspect the states will have a view about the GST. It's not a view I've been attracted to historically, but I'm going to try not to get in the process of shooting ideas between now and the round table,' Mr Chalmers said. AMP's chief economist Shane Oliver urged Labor to hike the GST and apply it across the board to minimise income tax. 'In an ideal world you would have less reliance on income tax and reduce the disincentive effects associated with it and have more reliance on GST,' Mr Oliver told Labor is also embarking on making changes to large superannuation accounts, which includes taxing unrealised capital gains, and has met fierce opposition from business leaders and economists. The changes come as Labor faces a decade of deficits and ballooning costs of the NDIS and defence. Labor also faces reduced tax revenue from lower tobacco excise and falling fossil fuel exports as Australia continues on its renewables shift.
AU Financial Review
a day ago
- Business
- AU Financial Review
Financial Review reporter Lucas Baird wins Mid-Year Walkley Prize
The Australian Financial Review's superannuation reporter Lucas Baird has been awarded a Walkley Foundation Mid-Year Media Prize for revealing a cyberattack on some of the country's largest funds, including Australian Super and Australian Retirement Trust.
AU Financial Review
4 days ago
- Business
- AU Financial Review
Super funds are not a piggy bank for Labor's pet projects
The Australian Financial Review has been a consistent critic of the Albanese government's predilection to use the nation's $4.2 trillion compulsory retirement savings system as a vehicle to deliver on its policy ambitions. In his first term, Treasurer Jim Chalmers conscripted both the superannuation industry and Australia's A$307 billion Future Fund to prioritise national interest investments in residential housing, renewable energy and infrastructure projects. It marked the first time a federal government had prescribed specific asset classes for superannuation funds to consider.
National Business Review
12-06-2025
- Business
- National Business Review
Wilsons Advisory stake sale report ‘purely speculation': Craigs
Craigs Investment Partners is considering selling its circa 50% stake in Wilsons Advisory, according to a report in the Australian Financial Review that the firm says is 'purely speculation'. The outlet's Street Talk section said it believed Canadian firm Canaccord Genuity was an interested
The Advertiser
11-06-2025
- Business
- The Advertiser
Minister says he is optimistic about Tomago Aluminium's future, despite increasing energy prices
Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040. Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040. Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040. Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.
