News dalla rete ITA

24 Novembre 2020

Australia

MULTINATIONALS SAY TAX BREAK WILL BOOST INVESTMENT

Multinationals such as Nestle, Mondelez and Asahi will review capital investment plans and consider bringing forward investment following the government's decision to widen the eligibility for its $26 billion business expense tax break.The $26 billion plan, unveiled in the October budget, allows firms with turnover of up to $5 billion to instantly write off the full cost of eligible capital investments between now and June 2022.The measure was aimed at quickly stimulating business investment to support the post-COVID recovery and the government claimed on budget night that 99 per cent of businesses would be eligible. However, it quickly emerged that hundreds of Australian-based companies with turnover of less than $5 billion would be ineligible for the scheme because the "aggregated" turnover of their overseas parents exceeded the threshold.After a concerted campaign by business groups, Treasurer Josh Frydenberg widened the eligibility criteria to ensure large Australian-based companies with domestic turnover below $5 billion could qualify under certain conditions.The change means that companies such as Dulux, Boral, Boeing, Brambles, Visy, Lion Dairy & Drinks, Coca-Cola Amatil, GE, Nestle, Asahi and Mondelez will be allowed into the scheme. However, businesses such as BHP, Rio Tinto, Telstra, Wesfarmers, Woolworths and Coles will be excluded.Last month Mondelez opened a new site in Croydon in Melbourne, bringing the packing of gifts and seasonal products inhouse at a dedicated facility to help the company innovate in what is a growing segment.Japanese brewer Asahi, which recently completed the acquisition of Carlton & United Breweries to become Australia's largest brewer, would also have been ineligible under the previous criteria.Building products group Boral said it would ''revisit'' its capital spending program to see if there was a chance to pull forward investment plans. Boral has a large business in the United States which has been a serial underperformer and may be offloaded if the price tag reaches acceptable levels.But Boral emphasised it would only allocate capital where there was potential for returns higher than the cost of capital.Boeing also said it supported government policies that helped lead to increased corporate investment and R&D here in Australia.The decision to limit the tax break to companies with revenues below $5 billion was based on Treasury advice that suggested it would be most likely to spur new "additional" investment among non-mega projects that could get off the ground within the two-year deadline. (ICE SYDNEY)


Fonte notizia: Financial Review 23.11.2020