Ownership and Dividend Policy Environment †MyAssignmenthelp.com

Question: Discuss about the Ownership and Dividend Policy Environment. Answer: Introduction: The argument regarding the impact of lowering Australian corporate tax rate relatively wide, where adequate impact of the policy needs to be evaluated. the major concern regarding the corporate tax cut is the loss, which will be incurred by Australian citizens inform of Healthcare and schools. some of the analyst in Australia relatively believe that the corporate tax cut would eventually help companies that are profiting from the current market environment will increase their wealth. On the other hand, the corporate tax cut could directly impact the overall ability of the Australian government to spend on health care in schools for the benefits of the Australian citizens. The decline in corporate tax rate from 30% to 25% wood effect Australian government ability to maintain the level of Healthcare and school provisions that is needed for the next generation all the country. In this context, Ft.com (2018) mentioned that government expenditure is relatively adequate for boosting the ec onomy, as it helps in increasing the overall cash flow and progress in the country. From relevant research it could be identified that corporate tax cut would eventually help companies such as Philip Morris International, where the total earnings are given overseas rather than being used in the Australian market. Moreover, companies such as BHP Billiton is considered highly profitable Endeavour, while the main problem is from the lawsuits that is being filed against the company. This has a relatively hampered the actual profitability of the company due to the negligence on environmental control. Lastly, the evaluation also indicated that the corporate tax cut would eventually benefit companies such as big four banks in Australia, whose maximum wealth is being controlled by institutions that made $30 Billion in profit the last fiscal year. This relatively clears the picture regarding the current Corporate tax rate cut, which would only benefit rich organizations, while hampering this support and benefits that was provided to the normal Australian citizens. Therefore, understanding the current implications of the corporate tax rate reduction would eventually help in detecting the benefits and problems that might incur in future (Abc.net.au, 2018). The corporate tax can directly impact the Australian citizens both adversely and positively, as it has negative and positive impact on Economy. The current position of multinational companies in Australia is relatively adequate, as they are making profits from the operation. However, the main problem occurs when small and medium scale industries, which is the backbone of the economy are being hampered due to the high tax rate. The corporate tax rate would eventually impact the dividend Imputation system that is currently present in Australia. There reduction tax rate would eventually help in increasing the overall evidence that could be paid to the investors by the companies. therefore, with the help of tax cut investors and economic condition of Australia can be improved (Static.treasury.gov.au, 2018). The decline in corporate tax rate would eventually help in improving the employment rate, employee wage rate, foreign direct investment and boost the Australian economy. the mentioned attributes of benefits that could be conducted from the decline in corporate tax rate is achievable as companies with low tax raid would eventually increase their investments in Australia. In addition, Leigh (2018) mentioned that the high tax rate relatively reduces the capability of the corporations to increase their exposure in the market due to the low capability of available cash. Moreover, production incorporated state you would eventually helping reducing the overall loan and short-term trading that are taken by companies due to stagnation of adequate cash. Nevertheless, the evaluation of the above statement indicates that the client in corporate tax rate needs to be ignored by the Australian government, as it will not benefit the common citizens of Australia. The corporate tax cut would eventually boost the economy but in the long run it would help the overall condition and living standard of Australian citizens. Corporate tax cut would only benefit multinational companies, whose overall income is transferred overseas while reducing the actual benefits that could be provided to Australian citizens (Shaw, 2017). The current conditions of the corporates in Australia is adequate, where there is no requirement regarding the extra tax cut for the corporations. The above calculations mainly indicate that using the portfolio is a much viable option, as it comprises of Beta 1, while the returns are higher than NAB. This relatively indicates that with portfolio both the stocks can be used for investment, which might help in improving the returns generated from investment. The portfolio return is relatively at 6.50%, which is as the market return. Therefore, investment and Portfolio is a viable approach, which could help in generating high level of returns from investment. Reference and Bibliography: Abc.net.au. (2018).ABC News. Retrieved 6 April 2018, from https://www.abc.net.au/news/2018-02-22/more-to-jobs-and-growth-than-a-corporate-tax-cut/9471856 Au.finance.yahoo.com. (2018).In.finance.yahoo.com. Retrieved 5 April 2018, from https://au.finance.yahoo.com/quote/BHP.AX/history?period1=1451586600period2=1485801000interval=1mofilter=historyfrequency=1mo Balachandran, B., Khan, A., Mather, P., Theobald, M. (2017). Insider ownership and dividend policy in an imputation tax environment.Journal of Corporate Finance. Ft.com. (2018).Ft.com. Retrieved 6 April 2018, from https://www.ft.com/content/2583a300-0c81-11e8-8eb7-42f857ea9f09 Ingles, D., Stewart, M. (2018). Australia's Company Tax: Options for Fiscally Sustainable Reform, Updated Post Trump. Leigh, A. (2018). Do firms that pay less company tax create more jobs?.Economic Analysis and Policy,59, 25-28. McIlroy, J. (2017). The Trump-Turnbull tax trick.Green Left Weekly, (1156), 3. Shaw, A. (2017). Tax files: Why small really is better: Accessing the lower corporate tax rate for small business entities.Bulletin (Law Society of South Australia),39(10), 39. Static.treasury.gov.au. (2018).Static.treasury.gov.au. Retrieved 6 April 2018, from https://static.treasury.gov.au/uploads/sites/1/2017/06/03_Incidence_of_company_tax_in_Australia_v3.pdf Wagner, A., Zeckhauser, R. J., Ziegler, A. (2017).Company stock reactions to the 2016 election shock: Trump, taxes and trade(No. w23152). National Bureau of Economic Research.