The push for change
After what has been a quite extraordinary week in the new Senate, Prime Minister Tony Abbot's vow to 'axe the tax' has been achieved
with the support of the minor parties and the Palmer United Party. This will clear the way for debate to start on other Budget reforms proposed earlier this year as part of the May Budget.
The repeal of the carbon tax was by no means an easy feat and the position of the minor parties will be crucial for the Government's other, fairly radical reforms to make their way through the Senate.
But it is the broader impact of dramatic changes to Government subsidies for families, the disabled and the unemployed that have many concerned as does the structure and affordability of higher education. Also at stake is the Prime Minister's Paid Parental Leave Scheme, a centrepiece to Tony Abbot's election campaign.
A number of changes have already been announced but not yet enacted after the Bills were rejected by the previous Senate, in particular the Bill repealing the mining tax, which contains amendments to:
- Remove loss carry back rules for companies from 2013/14 financial year;
- Remove the instant $5000 deduction for motor vehicles acquired by small business from 1 Jan 2014; and
- Reduce the instant asset write-off from $6,500 to $1000 for SMEs from 1 Jan 2014
Repealing the carbon tax will also see the ACCC ramp up its campaign against businesses that used the carbon tax as an excuse to artificially inflate prices.
The repeal Bill gives the ACC better powers to monitor pricing and take action where they believe that the business has misled customers about the effect of the carbon tax repeal or carbon tax scheme on goods and services.
The next few months will be an interesting time in politics as we watch the new Senate take shape.
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Last updated July 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.