Budget hit to business tax breaks
The Gillard government’s May 14 budget will crack down on business tax breaks, including the “thin capitalisation” rules and exploration tax concessions for resources companies, depicting the changes as plugging holes in the corporate tax system rather than cash grabs to reduce the deficit, according to the Australian Financial Review.
It is understood the package does not include an increase in the corporate tax rate, despite growing speculation in business circles that an increase was being considered. It does not include any changes to the diesel fuel rebate.
The government is believed to have ruled out other business tax reforms recommended by the Business Tax Working Group (BTWG).
Companies fail to act on big energy savings
Australian companies are sitting on potential energy savings of $3.4 billion but are unlikely to act on about a third of them despite high power prices, according to the Australian Financial Review.
Research to be released today by energy think tank ClimateWorks shows companies accounting for half of Australia’s total energy consumption are implementing projects worth $1.2 billion.
These projects will save 4.8 per cent of their energy use, equivalent to almost a quarter of the total residential use in Australia.
But another $2.2 billion worth of energy savings – many with a payback period of less than two years – will not be acted upon because of factors such as operational risks, capital constraints and a long payback period.
Obeid recalled to ICAC to respond to claims
Former NSW Labor powerbroker Eddie Obeid will be recalled to give evidence at a NSW corruption inquiry after his lawyers complained he was not given an opportunity to address explosive claims by a key witness, according to the Australian Financial Review.
The Independent Commission Against Corruption said yesterday that Obeid would give further evidence on May 13 about a coal licence over land owned by his family and associates.
Chinese businessman Alan Fang gave evidence earlier this year that implicated Mr Obeid directly, rather than through his sons, in early negotiations in a coal deal relating to the properties.
ICAC is investigating whether a coal exploration licence over the land was corruptly awarded by then NSW Labor minister Ian Macdonald.
