Mr Hockey confirmed that 7 proposed reforms would be scrapped, including the former government’s $1.8 billion dollar proposed removal of the Statutory Method for the calculation of Fringe Benefit Tax on motor vehicles (which the government will now keep), as well as the proposed tax on superannuation pension earnings above $100,000.
Implications for you
Business groups have welcomed Mr Hockey’s announcements in respect of the Superannuation Guarantee rate increase – whereby the increase will be re-phased to ensure that the current rate of 9.25% remains in place until July 2016.
On the individual taxpayer level, the government has made it clear that the proposed $2,000 cap on deductions for Self-Education Expenses will not be adopted by the current government.
Assistant Treasurer Arthur Sinodinos will be leading the consultation on the remaining 64 proposed initiatives with assistance from the Board of Taxation, however it is understood that the government has already formed a “disposition not to proceed”.
Sinodinos has set a deadline of December 1 2013 to finalise the government’s assessment.
Redchip believes that these preliminary indications of the government are on the whole positive for both Small to Medium Enterprise (SME) and also larger Australian businesses looking to expand into foreign markets, and we expect business confidence will increase in the coming months.
If you would like to gain a better understanding of the current business taxation regime or receive more information regarding the government’s position on the proposed reforms please contact us at firstname.lastname@example.org.