×

Proposed tax reforms: Hockey gets hacking

Treasurer Joe Hockey recently announced the government’s plans to deal with 92 proposed taxation and superannuation reforms that were announced by the former governments but remain either unresolved or unlegislated.

The announcement confirms that the government plans to proceed with only 18 of the proposed measures and substantially amend 3 others.


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.

Our outlook

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 tax@redchip.com.au.

Back to Articles
Redchip

Recent Articles

kaitlyn-baker-vZJdYl5JVXY-unsplash (1)
It’s official – Electronic Signing for Companies is here to stay!

Thankfully, on 22 February 2022, the Corporations Amendment (Meetings and Documents) Act 2022 (Cth) (the Act) received assent, amending the Corporations Act 2001 (Cth) (Corporations Act). This legislation clarifies and makes permanent the temporary relief measures which had in place 2020. The Act establishes a permanent mechanism which allows for: The electronic execution of documents […]

Read more
Untitled design
Who is responsible to repair damage following a natural disaster?

1. Rent Abatement In most cases, a lease will contain a clause whereby the tenant’s obligation to pay rent and other money under the lease (such as outgoings) is abated (either partially or completely) while the Premises are inaccessible or incapable of being occupied. 2. Reinstatement The Lease may contain specific obligations on the Landlord […]

Read more
pexels-nothing-ahead-4502492
Significant Changes to Residential Contracts

What are the changes?   Extension of Settlement Date Recently, there have been media reports of buyers losing their deposits because of a failure of their financial institutions to be able to settle on the settlement date. This change allows for either party to extend settlement date by up to 5 business days from the […]

Read more