The Henry Tax Review - As the Australian Government Have Used It
- Author Julie Sultmann
- Published September 10, 2010
- Word count 461
There have been a lot of mixed reactions to the Henry Tax Review, but overall, it seems as though Australian workers should be better off by the time they reach retirement age.
Prime Minister Kevin Rudd states that core changes are about "...keeping our government finance strong, protecting the future of the Australian economy, ensuring working families and small business get their fair share..." But what does it all really mean for the average Australian?
While there's been a lot of press about the flagged changes on savings tax and making tax returns simpler, the Rudd Government decided not to release those items just yet. Instead, they're slated to be released later in 2010. How convenient that it's a federal election year this year.
Changes Announced So Far
The Government announced that it would be introducing an increase to the amount of super contributions made by employers into employee's superannuation accounts from 9% up to 12% by the year 2020. That all sounds great, but could it also herald an increase in costs to small and medium business owners that could halt growth in employment rates over the long term?
The cost of this is supposedly going to be offset by the introduction of new taxes on big miners' profits of 40%. While it seems as though the government is seeking new ways to fund budgetary spending by taxing the big guys, will this really be an incentive for these big companies to continue spending money and hiring Australians over the long term? Or will they move off-shore to avoid these high taxes, causing plenty of working Australians to lose jobs while the bigger mining companies seek cheaper labour costs?
Meanwhile, company taxes have been reduced from a flat rate of 30% to a flat rate of 28%. Even though many individual tax payers may believe this to be a little unfair, there is evidence that small and medium business owners can actually benefit from this kind of reduction in tax rate. It may even help to offset the other high costs of bringing on new employees for many small businesses.
The announcement that seemed to please many working Australians was the increase in the lower income brackets. Workers earning below $37,000 will receive a concession of up to $500 per year, which is designed to hopefully cancel out tax paid on any super contributions made. That's a little more than $9.61 per week.
Planned Changes Still to Come
The inequity of current investment taxes across differing investment classes has long been a source of debate. While some investors are eligible to receive a 50% rebate on capital gains tax for holding investments for longer than 12 months, those people holding savings in a long term bank account, aren't eligible for the same rebates on the tax paid on the interest they earn.
For more information see Reid Maddison Brisbane Accountants, Your partner in Financial Management
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The Advantages of Incorporation for Realtors: Safeguarding Your Financial Future
- 10 essential tax-saving strategies for landlords: Maximise your rental income
- A Comprehensive Guide to Navigating the Process and the Role of Customs Brokers in the UK
- Outsourced Accounting Services for UK Businesses: A Cost-Effective Solution for Financial Management
- Top 8 Self Assessment tax return software
- How to Close a Limited Company in the UK
- Maximizing Your Finances: Unleashing the Power of CPA Services
- VAT penalties – New rules
- TAX-FREE STRATEGIES IN AN UNCERTAIN ECONOMY
- 2022 Energy crisis and failure to connect Reality.
- When Are Corporate and Personal Taxes Due in Canada in 2021?
- You Would Never Have Thought That Having Accounting Internship Could Be So Beneficial
- ACTIVATION OF UAN
- Focal motivations behind getting a Tax direct for Small Business Firms
- Avoiding the flood — tax issues with water rights in agribusiness
- Social security benefits for a family (COVID-19)
- How to use QuickBooks Component Repair Tool?
- Do you want to reduce your taxes for next year?
- Will you be responsible with your tax refund?
- Getting started with QuickBooks Enhanced Payroll in Brief
- Are DSTs Right For Your 1031 Exchange
- Tax Return Makeovers By Kenya Woodard
- Why have all crypto tax attempts failed?
- Are You a Corporation? Know Why Consulting a Tax Accountant Is Vital
- Share capital or share premium for your Dutch company?
- Everything investors should know about 1031 sponsors
- Why is the income tax so high in UK?
- Should I do my own tax return?
- Get More Money Back on Your Tax Return with help from the Tax Cuts and Jobs Act
- Don’t Fall Victim to these 3 Tax Scams in 2018