Contractors to be hit with $2.3 billion in tax fines; ACCC tells Telstra to cut prices: Midday Roundup

Contractors who have dodged their GST or income tax obligations have been hit with $2.3 billion in tax bills, Fairfaxreports.

Hundreds of thousands of contractors have already been notified, with the possibility of billions more outstanding as the Australia Taxation Office (ATO) continues to match its incoming data to identify those operating in the cash economy.

These recent findings have been possible from a reporting system set up by the ATO between 2012-13, which requires businesses in construction and building to disclose payments made to contractors.

This reporting system has identified unpaid income tax and GST liabilities of $2.3 billion for 2012-13.

ACCC tells Telstra to cut access prices

The cost of using phone and internet will fall following the Australian Competition and Consumer Commission’s draft decision to drop the price Telstra can charge its wholesale customers.

The draft decision will see a 9.6% fall in the access price for other service providers who pay to use Telstra’s copper network to provide telecommunications services to customers.

The new prices will take effect from October 1 and continue until June 30, 2019.

In a statement today, ACCC chairman Rod Sims said the most important reason for the decision was to lessen the effect of the transition from Telstra’s fixed line network to the National Broadband Network.

Sims said while the transition from Telstra’s fixed line network to the NBN would see some of the legacy network’s assets become redundant, it should not be at the cost of consumers.

“Users of Telstra’s network should not pay the higher costs that result from fewer customers as NBN migration occurs,” Sims said.

Shares down on open

Australian shares have traded lower this morning, as investors begin to digest the news out of Greece.

Ric Spooner, chief market analyst at CMC Markets, said in a statement initial reactions from local investors include selling off euros and buying up US and Japanese currency and gold.

“The Greek situation involves considerable uncertainty for investors,” Spooner said.

“The most tangible impact is likely to be reduced confidence especially if, as seems possible, the situation drags on taking time before it becomes clear whether there will be a Grexit [Greek exit] and if so how this will be administered.”

The S&P/ASX 200 benchmark is down 97.6 points or 1.8% to 5448.3 points. At 12.07pm AEST, On Friday, the Dow Jones closed 56.32 points higher, up 0.31% to 17946.7 points.