Prime Minister John Key has welcomed a decision by Australia to review the tax treatment of the New Zealand earnings of Australian companies.
The thorny 'imputation credits' issue has long been a source of dispute between Australia and New Zealand. Australian companies such as ANZ, NAB, Westpac, CBA, APN and Fairfax earn over NZ$1 billion in profit each year from New Zealand and pay tax in New Zealand, but Australian investors do not get tax credits for these earnings.
The Australian Government does not recognise the tax paid on those earnings in New Zealand, meaning the Australian owners of those companies do not receive the 'franking credits' attached to those earnings. New Zealand has long argued Australia should grant those earnings tax credits, which would encourage more Australian investment in New Zealand.
However, Australia has regularly rejected the plea given it would cost hundreds of millions in lost tax receipts from the investors in those Australian-owned companies. New Zealand owned companies earn far less in Australia than vice versa, meaning the Australian government bears the biggest burden of mutual recognition of tax credits.
Key said in a statement after a joint meeting of the New Zealand and Australian cabinets in Sydney that he "welcomed Australia’s decision to make Mutual Recognition of Imputation Credits a matter for discussion in Australia’s Tax Reform White Paper."
Elsewhere, Key said Australian Prime Minister Tony Abbott had invited New Zealand to join the Business 20 (B20), which runs parallel to the G20 meeting being hosted by Australia on November 15/16.
He said they had also agreed that an "Australasia Business Week" showcasing their economies to the world would be held at the same time as the B20 summit in Sydney in July.
“This is a great opportunity for New Zealand and Australia businesses to work together to advance trade and economic reform," Key said.
Key also welcomed Abbott’s confirmation that Australia would extend access to students under the Higher Education Loan Program to long-term New Zealand residents in Australia.
“It is in both countries best interest to provide educational opportunities for young people," he said.
The Prime Ministers also announced that international visitors will only need one visa to attend games in next year's Cricket World Cup, which is being co-hosted by New Zealand and Australia.
The two Prime Ministers also released a joint response to a study by the New Zealand and Australia Productivity Commissions.
3 Comments
and redefining the term maaaaaaate.....
Australian supermarkets are dropping New Zealand-made products even if an alternative cannot be sourced locally, producers say, as concerns increase about whether the patriotic shut-out on foreign goods could expand to more product lines.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=111…
and yet if they could....
The New Zealand wine industry has won a four-year battle to prevent an Australian supermarket giant from trademarking the name South Island.
Woolworths applied to register a trademark wine label in New Zealand in 2009 using the name South Island and an image of a mountain.
http://tvnz.co.nz/national-news/vintners-win-south-island-trademark-fig…
and:
What's happened to Mainland Cheese!!! What's the deal???? Why have you taken one of the most popular cheeses in Australia off your shelves. I was informed by a Coles employee today, that Mainland won't pay you enough to stock their brand. What happened to what the consumer wants?Yes, I get the Australian made idea, but no other cheese brands sell the finely grated cheeses, only the fat chunky stuff. Maybe you could reconsider your decision, I am sure you are going to get a lot of complaints! I will message you which store. Going to have to buy yet another product from Woolworths. Won't be worth me coming to Coles anymore!
https://www.facebook.com/coles/posts/410702828993738
and
Bring back mainland cheese!! Great ocean road isnt that great.- Coles Hi Rhys, we appreciate the feedback. We're not sure if you saw our response to posts on this issue below. Some products in the Mainland Cheese range were recently deleted in line with our commitment to sourcing 100% Australian milk wherever possible. ...See More August 25, 2012 at 7:49pm
- Rhys Brumby Chermside, 100% Australia milk or not it has 0% flavour and I'm not the only one who thinks this as while I was standing at the cheese section 3 other people were asking the same question. I understand your supporting Australian farmers but people like choice forcing them to buy your brand by stocking nothing but will send them elsewhere. August 26, 2012 at 1:21am · 1
- Kathryn Seamons I agree Rhys. Mainland Tasty is my preferred tasty cheese. I am all for supporting the Aussie brands, but am more than happy to buy foreign brands (even though I consider NZ to be a little like Tasmania) if they taste better. I'm pretty sure most Woolworths stores are still selling Mainland Tasty. August 31, 2012 at 8:23pm https://www.facebook.com/coles/posts/402000759863945
and
The announcement came just hours after milk producers told a senate inquiry that the supermarket price wars were pushing the industry to the brink of collapse.
In its submission to the inquiry, the group representing milk producers - Australian Dairy Farmers - warned the industry faced annual losses of up to $227 million unless something was done.
Coles and Woolworths have been locked in a price war since Coles dropped its retail price of milk to $1 a litre earlier this year.
http://www.dailytelegraph.com.au/lifestyle/cheesed-off-no-not-bega/stor…
and
It’s tough times for Fonterra. The Auckland-based dairy giant, whose brands include Mainland cheese, Western Star butter and Ski yoghurt, recently reported earnings of $80 million for the first half of the year. That’s down by almost a third on last year, and there was little doubt during the company’s results presentation about the reason for the shortfall: Australia, and specifically the fact that our supermarkets are tightening their grip across key categories such as dairy.
http://www.brw.com.au/p/marketing/fonterra_sacrifices_brands_to_survive…
so where has this Colesworth attitude/culture come from?
His single-mindedness should not come as any surprise.
Late last month, Mr McLeod notched up his fifth anniversary at the helm of the Australian supermarket giant previously regarded by some in the industry as a basketcase.
On his watch, Coles has rocked the boat with rivals, small businesses, farmers, other suppliers, politicians and regulators.
Just this week it was drawn into a Federal Court battle with the Australian Competition and Consumer Commission amid claims of misleading and deceptive conduct.
The ACCC took aim at Coles' practice of shipping partially-baked frozen bread to stores, then finishing the job and selling it as "freshly baked in-store".
.....
Last year, he received a pay and perks package worth a whopping $14.8 million, putting him on the very top tier of Australia's pay scale. He has recently switched to a standard Wesfarmers executive contract and it appears he will not be heading back to Britain any time soon.
Mr McLeod has jokingly ruled out a return to his homeland until "St Kilda wins a flag".
Away from the supermarket floor, Mr McLeod - a former chief executive of Scottish soccer giant Celtic during his brief sojourn away from retailing - has also become a player in Melbourne's sporting scene......
http://www.heraldsun.com.au/business/managing-director-ian-mcleod-is-ki…
it appears the buy Australian is a PR driven stunt to cover the all sorts os supply chain tricks and in this case especially the brazen $1 a litre milk...
and why? what would the Scottish know about fresh food and nutrition...
New Asian Wellmart opened Friday opposite Countdown in Hamilton.Wellmart had as specials Bananas 99c kilo,tomatos 99c kilo and beefmince $4.99 kilo.
Countdown soon dropped their prices.Because of a duopoly in the groceries we are getting scewed by these guys both Foodstuffs and Woolies.
Aussies are starting to behave like Americans..... its called HUBRIS , out of touch with reality , full of arrogance and stupidity , and they will get their backsides kicked in due course .
This nonsense of not carrying our products by Aussie Supermarkets needs to be addressed as soon as possible .
We are able to do huge damage to Aussie investments here by a BOYCOTT of Aussie Companies such as Countdown , the Banks, Bunnings , and their food products, to name a few .
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.