Global tax reform top of the agenda for G20 finance ministers this weekend

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From: http://www.smh.com.au/national/global-tax-reform-top-of-the-agenda-for-g20-finance-ministers-this-weekend-20140919-10j9cu.html#ixzz3ElrP4yvD

The world’s most powerful central bank governors and finance ministers gather in Cairns this weekend for a series of highly charged economic meetings – one of their last chances to discuss as a group the problems afflicting the global economy before the all-important G20 Leaders’ Summit in Brisbane in November.

Treasurer Joe Hockey has been in Cairns for much of the week, meeting with Bank of England governor Mark Carney and International Monetary Fund chief executive Christine Lagarde. The official meetings will start on Saturday.

Mr Hockey has flagged that he wants the G20 finance ministers and central bank governors to focus on tax.

“Hopefully this weekend G20 finance ministers will sign up to an agreed global approach to ensure that companies pay tax where they earn the money,” he said this week. “It’s not an easy outcome, but we are going to work damn hard at it.”

He also wanted to talk seriously about the stability of the global financial system, including the rules for banking and prudential supervision of financial markets.

“We believe that at the G20 we can sign off on a number of initiatives that are going to ensure that banks that fail in the future are going to be held responsible for their own failure and systemically important banks don’t have to turn to governments to be bailed out by taxpayers,” Mr Hockey said.

In the days leading up to the event, the IMF said its attendees must seize the moment and commit to “decisive” reforms to bolster global economic growth.

Global growth had been much weaker than expected in the first half of this year, it said, and desperate action was needed to boost growth around the world.

The call put pressure on the commitment made by G20 members at a similar meeting in Sydney in February to grow their economies by 2 per cent above current projections over the next five years.

Mr Hockey said Australia was on track to hit the target, with stronger employment growth this year, but he was aware of the challenge ahead of him.

On tax and regulation, Mr Hockey said it was “hugely important” to discuss the need to have common reporting standards across different tax jurisdictions.

He said tax authorities needed to know when new bank accounts were being opened so they could tell if those accounts were being used to hide money in tax havens.

“We also hope to finalise the rules in relation to shadow banking … [because] it represents a potential significant threat to the stability of the global financial system.”

Mr Hockey said he hoped to “bring to a close” a lot of the “over-regulation” in financial and banking markets that occurred following the global financial crisis.

Other attendees this weekend include US Federal Reserve chairwoman Janet Yellen and European Central Bank president Mario Draghi. Reserve Bank governor Glenn Stevens and Treasury Secretary Martin Parkinson will also attend.

There are five topics on the agenda: global economy, growth strategies, investment, tax, and financial regulation, with side sessions on infrastructure, international business and civil society.

Read more: http://www.smh.com.au/national/global-tax-reform-top-of-the-agenda-for-g20-finance-ministers-this-weekend-20140919-10j9cu.html#ixzz3ElriBtvJ

Why we will follow NZ on tax reform

By ALAN MITCHELL

From: http://www.afr.com/p/national/economy/why_we_will_follow_nz_on_tax_reform_UvjLVLftN8pM5rFK63iuUJ

Alan Mitchell | John Howard is not alone in thinking Tony Abbott should be able to emulate John Key’s impressive combination of economic reform and political success.

Read More here

Tax Planning – Why You Need Retirement Planning Assistance

Why You Need Retirement Planning Assistance

 

Although most people eager look forward to the day when they can retire, few of these individuals are doing all that they can to financially prepare for this time. Getting retirement planning assistance is one of the best things that you can do to gain assured comfort and financial health during your later years. A qualified adviser can help you protect your portfolio from extraordinary taxation and inflation. (see more at http://fpa.asn.au/)

 

Certain investments are good for long-term savings given that these are guaranteed to stay ahead of inflation. They will have the same overall value when it is time for consumers to rely on these. Others, however, will gradually diminish in worth throughout the years. Although they might seem like solid investments now, the related returns can be greatly diminished by the passage of time.

 

It is important for people to note that all portfolios must have some measure of risk associated with them. Profit potential is usually directly associate with the amount of risk that an investment entails. Thus, people who want to implement aggressive savings plans for greater comfort and financial health will need to work with advisers who can show them how to mitigate this risk.

 

Diversification is important as well. Those who are preparing for their retirement years should have a diverse array of investments as this is a great way to mitigate risk and to acquire assured profits. People can invest in stocks, bonds, precious metals. They can also take advantage of the extraordinary profit potential of emerging markets for long-term investments.

 

If you want to be truly diligent in the management of your retirement photo, you or your advisers should review it once every few years (see comments by Richard Tjiong). This will allow you to reallocate your assets as needed, to address areas of increased risk or profit potential. Moreover, you adviser can use these reviews as an opportunity to help you find further tax shields based upon the most recent changes in tax laws. See more on planning for your retirement at http://centuriataxastute.com.au/investment-bonds-for-retirement-planning/

For more info on Trustee Regulations and the Australian court rulings in relation to this see article by Richard Tjiong at Richard-tjiong.com.au/