THE NEWS WRAP: Joe Hockey criticises the Federal Government’s company tax reforms

The federal opposition has claimed that Labor’s tax reform plans have descended into “chaos” after a working group failed to come up with a way to lower the company tax rate.

The tax working group’s report said that the levy on businesses could be reduced by 2% to 3%, but could not identify a revenue neutral way of doing so.

Shadow Treasurer Joe Hockey said that the group was set “an impossible task” and attacked Treasurer Wayne Swan for not consulting businesses during the process.

Inflation makes unexpected leap

Inflation rose further than expected in the first quarter of the carbon tax, with electricity and gas prices increasing sharply.

The Bureau of Statistics’ Consumer Price Index was up by 1.4% in the September quarter, marking the first quarterly rise in inflation since March 2011.

‘Vanity’ firms make mark on BRW Fast 100

Phone and broadband provider Time Telecom has topped the BRW Fast 100 list, although the rankings were packed with businesses offering “vanity” products and services.

The report found that Australians are spending more on luxuries, such as waxing and tanning, with several ventures in the sector making BRW’s fastest growth list. The Fast 100 founders have an average fortune of more than $4 million, while just 19 of the 171 founders on the list are female.

Overnight

The Dow Jones Industrial Average was down 243.36 points, 1.82%, to finish at 13,102.53. The Australian dollar rose to 103.18 US cents.