Key Takeaways
- • Prime Minister Malcolm Turnbull has scrapped the federal government's tax reform white paper shortly after taking office from Tony Abbott, reversing a process initiated by former treasurer Joe Hockey in 2014 that was scheduled to deliver a green paper before year-end and a white paper before the 2016 election.
- • The decision to abandon the white paper process came before Turnbull appointed Scott Morrison as treasurer and reportedly surprised Treasury staff and the White Paper Task Force, who had received over 700 submissions from industry bodies including the Business Council of Australia.
- • PAS Group, parent company of fashion brands Black Pepper, Marco Pollo, and Metalicus, has received an $86 million takeover offer from US hedge fund Coliseum Capital Management and is reviewing the proposal without yet making a formal recommendation to shareholders.
- • PAS Group shares surged 11% following the public disclosure of the takeover offer, indicating market support for the potential transaction valuation.
Summary
Prime Minister Malcolm Turnbull has reportedly scrapped the federal government's tax reform white paper as one of his first moves following his assumption of office from Tony Abbott. According to Fairfax reporting, the decision shocked Treasury staff and the White Paper Task Force, who had been progressing the multi-stage tax reform consultation process that was originally instigated by former treasurer Joe Hockey in 2014.
The tax reform initiative had been structured as a phased consultation framework. A discussion paper, which included a chapter on small business, was released in March 2015, with the government scheduled to release a green paper before the end of the year followed by a comprehensive white paper outlining Coalition tax policies ahead of the 2016 election. The cancellation came despite substantial stakeholder engagement, with industry bodies including the Business Council of Australia having already submitted more than 700 contributions for inclusion in the white paper. Notably, Turnbull's decision to scrap the white paper preceded his appointment of Scott Morrison as treasurer.
In separate corporate development news, PAS Group, the parent company behind fashion retail brands including Black Pepper, Marco Pollo, and Metalicus, has received an $86 million acquisition proposal from US hedge fund Coliseum Capital Management. Founded in 2004, PAS Group announced it is currently reviewing the takeover offer and is not yet in a position to make a formal recommendation to shareholders. The disclosure drove immediate market appreciation, with PAS Group shares rising 11% following the market update, reflecting investor receptiveness to the proposed transaction valuation.
The tax reform initiative had been structured as a phased consultation framework. A discussion paper, which included a chapter on small business, was released in March 2015, with the government scheduled to release a green paper before the end of the year followed by a comprehensive white paper outlining Coalition tax policies ahead of the 2016 election. The cancellation came despite substantial stakeholder engagement, with industry bodies including the Business Council of Australia having already submitted more than 700 contributions for inclusion in the white paper. Notably, Turnbull's decision to scrap the white paper preceded his appointment of Scott Morrison as treasurer.
In separate corporate development news, PAS Group, the parent company behind fashion retail brands including Black Pepper, Marco Pollo, and Metalicus, has received an $86 million acquisition proposal from US hedge fund Coliseum Capital Management. Founded in 2004, PAS Group announced it is currently reviewing the takeover offer and is not yet in a position to make a formal recommendation to shareholders. The disclosure drove immediate market appreciation, with PAS Group shares rising 11% following the market update, reflecting investor receptiveness to the proposed transaction valuation.
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