Keeping track of the key tax-relate promises from the Government and the Opposition has been a challenge in the lead up to the 2013 Federal Election. After a significant amount of reform from the Government, last month it was the Coalition's turn to 'set the cat among the pigeons' when it came to tax policy.
Late last month, Tony Abbott announced that the Coalition would not only scrap the mining tax but the initiatives funded by it - including the loss carry back rules.
With the election just two days away and the advertising blackout now in place, we've summed up the main tax points that will impact business.
- Upfront tax deduction for small business for new equipment up to $10k
- 5 year freeze on major superannuation reform
Bringing forward of the emissions trading scheme to 1 July 2014
- Scrap the statutory formula method for car fringe benefits (to fund bringing forward of emissions trading scheme).
All projects worth $300 million or more will have to adopt Australian Industry Participation Plans.
- Small company tax rate reduction by 1.5% from 1 July 2015
- Scrap carbon tax
- Scrap mining tax and the removal of some of the related initiatives funded by the mining tax including:
- Discontinuing the loss carry back rules
- Discontinuing the instant asset write off
- Removing accelerated depreciation for motor vehicles
- Discontinuing the phasing down of interest withholding tax on financial institutions. Note the current tax thresholds and fortnightly pension and benefit increases will remain in place.
- White paper on further reform
- And a generous parental leave scheme
The Coalition is due to release its final policy costings on Thursday, having already unveiled initial cost savings of $31.6 billion. Recent reports suggest they intend to deliver a $6 billion improvement to the nation's financial bottom line but not achieve a surplus for some time.
Latest polls suggest that the Coalition is likely to have a significant win on Saturday and may bring with it a more positive business sentiment. However they face a growing challenge with the national accounts released by the Australian Bureau of Statistics indicating that the new government will inherit a softening economy.
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Last updated September 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.