Economy

AussieCommerce buys PINCHme; Big business made $25 billion in tax deductions last year: Midday Roundup

Kirsten Robb /

Smart50 finalist AussieCommerce has acquired PINCHme, a service that offers consumers free samples in exchange for market research, for an undisclosed sum.

The takeover comes just months after AussieCommerce, parent company of DEALS.com.au, acquired New Zealand competitor DailyDo Limited, which has e-commerce websites DailyDo, Spreets, Yazoom and Groupy under its umbrella.

“The acquisition fits in perfectly with AussieCommerce’s member focused e-commerce network and allows us to grow our reach and work with leading global brands,” Adam Schwab, chief executive and co-founder of AussieCommerce Group, said in a statement.

“We’re excited to offer a more robust product mix to PINCHme’s significant Australian subscriber base while also providing our existing members with access to incredible samples.”

AussieCommerce turned over more than $138 million in the last financial year.

 

Big business made $25 billion in tax deductions last year

 

Australia’s biggest business last year claimed tax deductions and exemptions worth nearly $25 billion, reports Fairfax, enough to clear two-thirds of the federal budget deficit.

Documents from the Australian Tax Office seen by Fairfax show the nation’s 900 largest companies paid an “effective tax rate” of just 19.3 cents in the dollar on pre-tax profits in 2014, despite the corporate tax rate being 30%.

The figures show the top 900 companies, including the ASX 200, contributed $44.7 billion in tax in 2013-14. They would have paid $69.5 billion if tax had been paid at a 30% rate, making a difference of $24.8 billion.

The news comes as Treasurer Joe Hockey makes the case for a hike in the goods and service tax as a part of the government’s sweeping review of the tax system.

 

Shares flat

 

Lower commodity prices and a downdraft in US markets have delivered a weak opening for the stock market this morning, according to Ric Spooner, chief market analyst at CMC Markets.

“The apparent emergence of a new downtrend in spot iron ore prices over recent days is ratcheting up concerns about the viability of higher cost miners,” said Spooner.

“It’s also leading to renewed nervousness about growth prospects for the Australian economy. With iron ore accounting for around 20% of exports, the terms of trade is potentially under pressure again.”

The S&P/ASX200 benchmark was down -27.5 points to 5864 points at 12:06PM AEST. On Tuesday, the Dow Jones closed down 1.11%, falling 200.19 points to 17,776.1 points.

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Kirsten Robb

Kirsten Robb is a former journalist at SmartCompany. Previously, she worked at News Corp as a property reporter for Leader Newspapers and the Herald Sun, and holds a Masters of Journalism at Melbourne University.

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