With a new Government now in power, you may be wondering about the Coalition’s main tax proposals that could impact upon your business.

Here is an overview of some of the Coalition’s main election tax proposals in regards to corporate tax, personal tax and tax changes affecting small businesses. The flagship proposal of the Government is to abolish the Carbon tax and Mining tax.

On other fronts the government intends:

Corporate tax

  • to reduce the company tax rate by 1.5% to 28.5% from 1 July 2015 (except for larger companies that will pay a 1.5% levy to fund a paid parental leave scheme);
  • to abolish the recently enacted company loss carry back regime (that applies from the 2013 income tax year whereby companies can carry back their losses to previous years and basically offset it against the tax paid in those previous years);

Personal tax

  • to restore the full private health insurance rebate;
  • to introduce a paid parental scheme from 1 July 2015;

Tax changes for small business

  • to discontinue the small business instant asset write-off (currently small businesses qualify for an instant $6,500 write-off);
  • to scrap the accelerated depreciation of $5,000 for motor vehicles;

Other changes

  • to not abolish the statutory method for determining fringe benefits on salary-sacrificed cars (FBT);
  • to delay the increase in the superannuation guarantee by two years (currently 9.25%);
  • to abolish the Australian Charities and Not-for-profits Commission (ACNC);
  • to provide an exploration incentive.

Please contact your CAAA Adviser if you would like to discuss any of the issues mentioned in more detail.

*Liberal Party Website, The Coalition’s policy to create jobs by boosting productivity, 4 September 2013 & Our plan to get the budget under control, 28 August 2013.

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