Tax - the new spectator sport?
The arrival of a new Senate has turned the legislative process into a spectator sport, but leaves businesses and taxpayers in limbo.
The past six weeks or so have been a very interesting opportunity to observe the challenges the Government faces in passing Budget reforms. Who would have thought that passing new legislation through the new Senate could be quite the spectator sport?
The Government's successful repeal of the Carbon Tax was quite the arduous process for a Government hoping to push through a contentious array of Budget legislation quite quickly.
The repeal of the Carbon Tax now contains measures to strengthen the Australian Competition and Consumer Commission's position to pursue businesses that do not pass on savings, specifically that the ACCC will now require electricity and natural gas retailers (and importers) prove their efforts to pass on cost savings to customers.
There are still many other pieces of legislation to get through the Senate, but if the argy bargy around the carbon tax is anything to go by, the Government will need to sharpen up its negotiation skills.
The deferment of the paid parental leave scheme last week and the disquiet about other measures such as the co-payment at the doctors office has commentators looking hard at the Government's push to remove the mining tax.
The Government's first attempt failed, as did the legislation to encourage privatisation of State assets (also known as 'asset recycling'.
With some of the budget measures retrospectively applied to the 2013/2014 income year, it will be interesting to see what happens from here as many of the measures may significantly affect the tax outcomes for business.
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Last updated 21 August 2014. 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.