Latest news with #economicreform
Yahoo
11 hours ago
- Business
- Yahoo
Treasurer's huge call on tax changes
Treasurer Jim Chalmers has announced his ambition for economic and tax reform, and while he remains tight lipped about what's on the table, he has ruled out two key changes. Speaking to the National Press Club on Wednesday, the Treasurer announced the government will hold a productivity roundtable from August 19 to 21 for the purpose of seeking ideas for reform from business, unions, civil society and experts. The gathering will be capped at 25 people and held in Parliament House's Cabinet room. 'Obviously there are some things that governments, sensible, middle of the road, centrist governments like ours don't consider,' Mr Chalmers told The Conversation's Michelle Grattan. 'We don't consider inheritance taxes, we don't consider changing the arrangements for the family home, those sorts of things.' Mr Chalmers said he believes limiting the narrative to 'ruling things in or ruling things out' has a 'corrosive impact' on policy debate, but conceded to ruling out the historically controversial taxes. Inheritance tax is a tax you pay on assets inherited when you are the beneficiary of a will. While inheritance taxes used to be common in most states, by 1981 all Australian states had abolished them. The GST was another key tax eyed for the roundtable. Mr Chalmers has historically opposed lifting the GST but is facing increasing pressure from the states to do just that. The GST has remained at 10 per cent for 23 years. 'You know that historically I've had a view about the GST,' Mr Chalmers told the Press Club. 'I think it's hard to adequately compensate people. I think often an increase in the GST is spent 3 or 4 times over by the time people are finished with all of the things that they want to do with it.' Mr Chalmers said he hadn't changed his view on GST and he won't walk away from it but stressed he's open to hearing ideas on the issue at the roundtable. 'I've, for a decade or more, had a view about the GST,' he told The Conversation. 'I repeated that view at the Press Club because I thought that was the honest thing to do, but what I'm going to genuinely try and do, whether it's in this policy area or in other policy areas, is to not limit what people might bring to the table.' Two years ago, Mr Chalmers warned that raising the GST would likely not fix federal budget issues since even though the tax was collected by the federal government before it was distributed back to the states. 'From my point of view, there are distributional issues with the GST in particular. Every cent goes to the state and territory governments, so it wouldn't be an opportunity necessarily, at least not directly, to repair the Commonwealth budget,' he said. One thing that will remain in play though is the government's pledged superannuation changes, that would increase tax on investment returns, including interest, dividends or capital gains, on balances above $3 million. 'What we're looking for here is not an opportunity at the roundtable to cancel policies that we've got a mandate for; we're looking for the next round of ideas,' he said. 'I suspect people will come either to the roundtable itself or to the big discussion that surrounds it with very strong views, and not unanimous views about superannuation. 'But our priority is to pass the changes that we announced, really some time ago, that we've taken to an election now, and that's how we intend to proceed.' Mr Chalmers said the idea of extending the capital gains tax on superannuation balances to other areas had not been considered 'even for a second'. Sign in to access your portfolio
News.com.au
11 hours ago
- Business
- News.com.au
Treasurer Jim Chalmers rules out two key tax reforms
Treasurer Jim Chalmers has announced his ambition for economic and tax reform, and while he remains tight lipped about what's on the table, he has ruled out two key changes. Speaking to the National Press Club on Wednesday, the Treasurer announced the government will hold a productivity roundtable from August 19 to 21 for the purpose of seeking ideas for reform from business, unions, civil society and experts. The gathering will be capped at 25 people and held in Parliament House's Cabinet room. 'Obviously there are some things that governments, sensible, middle of the road, centrist governments like ours don't consider,' Mr Chalmers told The Conversation's Michelle Grattan. 'We don't consider inheritance taxes, we don't consider changing the arrangements for the family home, those sorts of things.' Mr Chalmers said he believes limiting the narrative to 'ruling things in or ruling things out' has a 'corrosive impact' on policy debate, but conceded to ruling out the historically controversial taxes. Inheritance tax is a tax you pay on assets inherited when you are the beneficiary of a will. While inheritance taxes used to be common in most states, by 1981 all Australian states had abolished them. The GST was another key tax eyed for the roundtable. Mr Chalmers has historically opposed lifting the GST but is facing increasing pressure from the states to do just that. The GST has remained at 10 per cent for 23 years. 'You know that historically I've had a view about the GST,' Mr Chalmers told the Press Club. 'I think it's hard to adequately compensate people. I think often an increase in the GST is spent 3 or 4 times over by the time people are finished with all of the things that they want to do with it.' Mr Chalmers said he hadn't changed his view on GST and he won't walk away from it but stressed he's open to hearing ideas on the issue at the roundtable. 'I've, for a decade or more, had a view about the GST,' he told The Conversation. 'I repeated that view at the Press Club because I thought that was the honest thing to do, but what I'm going to genuinely try and do, whether it's in this policy area or in other policy areas, is to not limit what people might bring to the table.' Two years ago, Mr Chalmers warned that raising the GST would likely not fix federal budget issues since even though the tax was collected by the federal government before it was distributed back to the states. 'From my point of view, there are distributional issues with the GST in particular. Every cent goes to the state and territory governments, so it wouldn't be an opportunity necessarily, at least not directly, to repair the Commonwealth budget,' he said. One thing that will remain in play though is the government's pledged superannuation changes, that would increase tax on investment returns, including interest, dividends or capital gains, on balances above $3 million. 'What we're looking for here is not an opportunity at the roundtable to cancel policies that we've got a mandate for; we're looking for the next round of ideas,' he said. 'I suspect people will come either to the roundtable itself or to the big discussion that surrounds it with very strong views, and not unanimous views about superannuation. 'But our priority is to pass the changes that we announced, really some time ago, that we've taken to an election now, and that's how we intend to proceed.' Mr Chalmers said the idea of extending the capital gains tax on superannuation balances to other areas had not been considered 'even for a second'.
Arab News
19 hours ago
- Business
- Arab News
Five groups submit qualification documents in Pakistan's renewed push to privatize PIA
KARACHI: Pakistan has received qualification documents from five investor groups seeking to acquire a controlling stake in its loss-making national carrier, the Privatization Commission said on Thursday, as the government advances a long-delayed divestment plan. The privatization of state-owned entities has been mandated by the International Monetary Fund (IMF) as Pakistan works to implement structural reforms and stabilize its economy, which has recently shown signs of macroeconomic improvement. Pakistan International Airlines (PIA), in particular, has survived for years on government bailouts, placing further strain on the country's already cash-strapped finances. The government invited expressions of interest in April for a stake ranging from 51 percent to 100 percent in Pakistan International Airlines Corporation Limited (PIACL), along with management control. The final deadline for submitting Statements of Qualification (SOQs) was today. 'The Privatization Commission received Expression of Interest (EOI) from ... eight interested parties,' the official statement said, adding that 'five interested parties submitted SOQs by the deadline today.' Among the groups that submitted documents are a consortium comprising Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures; a consortium led by Arif Habib Corporation with Fatima Fertilizer, City Schools and Lake City Holdings; Air Blue Limited; Fauji Fertilizer Company Limited, which is a military-backed firm; and a consortium including Serene Air, Augment Securities, Bahria Foundation, Mega C&S Holding and Equitas. The government had previously attempted to privatize PIA in 2024 but called off the process after receiving a single bid of Rs10 billion ($36 million) from Blue World City — far below the Rs85 billion ($305 million) floor price. The sale was scrapped, citing the airline's weak financial position and unattractive terms for buyers. PIA has long been a fiscal liability, with operational earnings repeatedly offset by heavy debt servicing. However, following restructuring, it reported an operating profit of Rs9.3 billion ($33.1 million) in April, its first in 21 years. 'The SOQs submitted by the parties will be evaluated by the Privatization Commission against the prequalification criteria,' the official statement informed. 'The prequalified parties will proceed to the next stage where they will be given access to the virtual data room to undertake buy-side due diligence.'
Zawya
a day ago
- Business
- Zawya
Egypt targets top 50 global business readiness ranking with key reforms
Egypt's government is targeting a position among the world's top 50 economies for business readiness and has set a three-month deadline to implement the required reforms, the country's investment minister said. Minister of Investment and Foreign Trade, Hassan El-Khatib, made the statement during the second meeting of the National Committee for the 'Business Ready' report. The meeting was hosted by the ministry and attended by Cairo Governor Ibrahim Saber and other relevant government bodies. The committee reviewed the findings of the second report issued by its technical secretariat and discussed institutional participation indicators. 'The government is targeting a position among the world's top 50 economies for business readiness,' El-Khatib said, stressing the need to implement the required measures within three months. He emphasised the need for all sectors to participate effectively by completing the report's questionnaires to ensure a realistic and effective assessment of the business environment. He noted that the required procedural reforms are not complex and can be implemented immediately, which would create a significant shift in the country's competitiveness. The minister also stressed the importance of turning current challenges into genuine reform opportunities, pointing toEgypt's existing strengths. He cited the country's advanced infrastructure, including ports and railways, a clear plan for expansion into African markets, a highly skilled workforce and engineering talent, and the availability of renewable energy sources. For his part, Cairo Governor Ibrahim Saber affirmed the governorate's full readiness to cooperate with the Ministry of Investment and Foreign Trade to address any challenges that may hinder the implementation of the targeted reforms. The meetings of the National Committee for the 'Business Ready' report are part of a state-wide effort to enhance the readiness of its institutions to apply international business standards. The initiative aims to coordinate between different government agencies and integrate their roles to build a flexible and effective institutional system capable of keeping pace with global developments and improving Egypt's investment climate.
Daily Mail
a day ago
- Business
- Daily Mail
Hold onto your wallets, Australia - more taxes are on their way! The clue that radical economic change is coming: PETER VAN ONSELEN
Jim Chalmers took to the National Press Club stage in Canberra yesterday with all the polish of a practiced political performer. But beneath the smooth delivery came a message that should make voters twitch: Labor's just getting started. Framed as a vision for 'Second Term Economic Reform', Chalmers signalled (without spelling out any details yet of course) that the promises made before the election weren't the full story. The subtext? Hold onto your wallets everyone, more taxes are on the way! Yes, the Treasurer talked up productivity, resilience and an 'evolution' of the tax system, whatever that means. But reading between the lines it is a different story. Chalmers has now confirmed that if he gets his way Labor is about to start breaking election promises: putting taxes up and cutting spending wherever it can get the Greens to agree to it in the Senate. That would be under the guise of 'tax reform', which wasn't flagged during the election campaign even though the perilous state of the budget patently required changes. Budget repair isn't magic, it's arithmetic. Therefore pain is coming. Chalmers also said he wants to 'dial up the ambition' when it comes to economic reform. More ambition usually means more spending so far as this government is concerned. But maybe not this time. Not in the context of a budget crisis. And not now that two serious economists have joined the ranks of Labor's finance team, assistant treasurer Dan Mulino and cabinet secretary Andrew Charlton, perhaps we will get thoughtful economic reforms. The pair hold PhDs in economics from Yale and Oxford respectively. Whether old school big government types like Chalmers accept it or not, less spending simply has to on the agenda - beyond the spending that has already been promised before and during the election campaign. Given the terrible state of the federal budget. Chalmers knows that. In fact he knew it well before the election but it didn't suit his purpose to flag it back then. Now that Labor has won and won handsomely it appears set to tackle the underlying structural deficit, even if none of the details as to how doing so might unfold were produced at a time when voters had the chance to judge the plans. To fix the budget Chalmers needs more revenue or he has to find savings to help restore fiscal discipline. That means… you guessed it: tax hikes, spending cuts or both. Chalmers was even prepared to leave changes to the GST on the table when asked. He did point out he's not in favour of doing anything on that front, and Labor probably won't, but at least he's not already playing the rule in rule out game. What else might be looked at? Negative gearing cut backs? Capital gains changes? Taxing the family home or inheritance? Presumably all are also now on the table. What about shifting the GST to become a federal tax, or giving states the right to set their own GST parameters? New sin taxes on sugar perhaps? And we haven't even got to the sorts of cuts that might be coming too, including duplication in the federation. It is worth noting that the Treasurer was quick to rule out a backflip on his piecemeal plans to tax unrealised gains on super accounts. Anyone hoping for a responsible debate on that policy fail can think again. That suggests that all other options for reform might genuinely be on the table. The Treasurer had actually ruled out major tax reform during this term when he was on the ABC's election night panel, but now he's laying the groundwork for a possible post-election pivot. It is ambition without a mandate mind you, dressed up as acting responsibly. While we certainly do need far reaching tax and federation reforms, such changes need to be done holistically, otherwise piecemeal changes (such as to super) usually result in more taxes, not real tax reform. If this all sounds familiar that's because it is: another page from the well-worn political playbook of saying one thing before an election only to do things differently afterwards. It is a classic Canberra sleight of hand: declare bold intentions in the vaguest of terms, delaying the details until after the votes are counted. Then claim necessity demanded a new direction, just as Chalmers did today. Albanese did it with the stage three tax cuts three years ago, now Chalmers appears set to do it with almost everything else.
