Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


AUS: Business tax changes will boost bandwidth

'The Government's business tax reform should expand Australian access to a key building block of the information economy - international telecommunications cable capacity,' the Minister for Communications, Information Technology and the Arts, Senator Richard Alston, said today.

'The Government has decided that Australian telecommunications carriers should be entitled to a tax depreciation deduction in respect of their ownership of "indefeasible rights of use" of submarine cable systems. This change will encourage telecommunications carriers to invest in international cable capacity.

'The decision builds on the Government's broader strategies to ensure Australia captures its share of vast benefits presented by the online world, including the National Bandwidth Inquiry and the information economy strategic framework.'

An indefeasible right of use (IRU) is an arrangement whereby a carrier that is not a member of the original consortium that established a submarine cable system is able to obtain the right to use the system. The lump sum payment that is often required to be paid up-front for an IRU can run into tens of millions of dollars, but no depreciation deduction is allowed under current tax law. Depreciation is, however, an allowable taxation deduction for the original members of the consortium that own the cable.

The only tax benefit available to the holder of an IRU is that deriving from the capital loss when the IRU is disposed of at the end of the effective life of the cable system.

This has led to unequal treatment of, on the one hand, the limited number of carriers who have been able to enter into ownership arrangements in respect of the various international submarine cable systems and, on the other hand, those new carriers who have been forced to acquire IRUs in order to use these systems.

It has also meant that telecommunications carriers which are residents of Australia have been disadvantaged in relation to overseas carriers, as depreciation deductions have been allowed for IRUs in a number of countries, including New Zealand, the US, Canada and Japan.

'The Government's decision announced today will remove this disadvantage,' Senator Alston said.

© Scoop Media

 
 
 
 
 
World Headlines

 

Preliminary Results: MH17 Investigation Report

The Joint Investigation Team (JIT) is convinced of having obtained irrefutable evidence to establish that on 17 July 2014, flight MH-17 was shot down by a BUK missile from the 9M38-series. According to the JIT there is also evidence identifying the launch location that involves an agricultural field near Pervomaiskyi which, at the time, was controlled by pro-Russian fighters. More>>

ALSO:

At The UN: Paris Climate Agreement Moves Closer To Entry Into Force

The Paris Agreement on climate change moved closer toward entering into force in 2016 as 31 more countries joined the agreement today at a special event hosted by United Nations Secretary-General Ban Ki-moon. More>>

ALSO:

ALSO:

Gordon Campbell: On The End Game In Spain (And Other World News)

The coverage of international news seems almost entirely dependent on a random selection of whatever some overseas news agency happens to be carrying overnight... Here are a few interesting international stories that have largely flown beneath the radar this past week. More>>

Amnesty/Human Rights Watch: Appalling Abuse, Neglect Of Refugees On Nauru

Refugees and asylum seekers on Nauru, most of whom have been held there for three years, routinely face neglect by health workers and other service providers who have been hired by the Australian government, as well as frequent unpunished assaults by local Nauruans. More>>

ALSO:

Other Australian Detention

Gordon Campbell: On The Censorship Havoc In South Africa’s State Broadcaster

Demands have included an order to staff that there should be no further negative news about the country’s President Jacob Zuma, and SABC camera operators responsible for choosing camera angles that have allegedly made the President ‘look shorter’ were to be retrained... More>>

ALSO:

Gordon Campbell: On A Bad Week For Malcolm Turnbull, And The Queen

Malcolm Turnbull’s immediate goal – mere survival – is still within his grasp... In every other respect though, this election has been a total disaster for the Liberals. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
Australia
Search Scoop  
 
 
Powered by Vodafone
NZ independent news