Business

Feb 6, 2018

Corporate tax cuts a handy boost if you’ve blown a lazy billion

While Wesfarmers' own business lobby group was calling for tax cuts, its management was wasting billions in dud overseas ventures.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer and Bernard Keane

Crikey business and media commentator / Politics editor

Say you’re a major Australian company. And say you’ve just wasted over $1 billion on a dud foreign venture. What better way to balance the books than to have your own bespoke business lobby group argue for a company tax cut that will deliver you a major windfall?

12 comments

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12 thoughts on “Corporate tax cuts a handy boost if you’ve blown a lazy billion

  1. Persistently Baffled

    BCA will also be vehemently opposing the concept and application of a living wage. I don’t expect business to be joining with the ACTU to argue in favour of minimum wage rises in front of the Fair Work Commission.
    But don’t fret – the $60 billion wiped off the markets this morning was only an adjustment. Free market in action in a liberal democracy. Nothing to see here. Losses will be nationalised, profits will be privatised.
    And other swindles.

    1. AR

      Pardon, but you don’t seem at all baffled mate.
      You’ve got a clue or two.

  2. zut alors

    Cousin Jethro should stick to an area of proven expertise ie: deporting dogs owned by Hollywood A-listers.

    His economic analysis is on a par with his Murray-Darling water management.

    1. klewso

      Must be comforting to have Jethro in your corner getting your back?

      1. klewso

        ….. Probably explains what happened to the Tuppence spine?

  3. Jay Lawson

    It used to be said that the sign the market had peaked was Telstra or BHP buying a large enterprise.
    Does management set bonus performance targets that can best be met by gambling large amounts of shareholder money? It would be rational to do that.

  4. klewso

    “Sure we’ll hire more plebs on the back of those Corpulent Tax cuts – right after we attend to a couple of other little outstanding matters….”?

  5. Dog's Breakfast

    Here’s a thought – I have to assume that these write-downs are then taken off the bottom line, such that tax receipts then take a hit to the value of 30% of the write-down. Anyone better informed on company tax that can clear that up.

    Interestingly, a reduction in the company tax rate has the upside of the tax-payer stumping up less for these losses. Is that not so, and wonderfully perverse.

    1. Phen

      Not true. Contrary to what the article says, writedowns and impairments are not deductible for Australian tax purposes (nor under the vast majority of tax jurisdictions). The taxman views these as non-cash accounting adjustments only, which is appropriate.
      However, they can be tax-deductible if and when the operations are abandoned altogether, but not necessarily.

  6. [email protected]

    WHY CAN’T THESE ARTICLES BE POSTED TO SOCIAL MEDIA?
    SURELY IT WOULD HELP SPREAD THE WORD AND BE FREE ADVERTISING?

    1. Jane Mahoney

      Hi Keith, we had a brief issue with the website yesterday that affected links shared to social media. Usually there would be no issue with sharing our articles, so I apologise for the inconvenience. Also, thank you for your thoughts regarding placement of share icons on the website, you raise a good point and it has been passed onto our development team. Thanks, Jane (Crikey Engagement Manager)

  7. [email protected]

    BELAY THAT-BUT DO NOT UNDERSTAND WHY YOUR “SHARE FACILITY” IS AT THE START INSTEAD OF AT THE END OF AN ARTICLE?

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