Now that the Abbott government is settling in, it is worthwhile to take a look at their promises and the commitments that they made in the run-up to the election.
Here is a list of some of the important commitments:
• Self education expenses: There will be no $2,000 cap on self-education expense deductibility.
• FBT and cars: The statutory formula method for car fringe benefits will be abolished.
• Company tax rate to be cut to 28.5% from 1 July 2015.
• No changes to the GST rate before the next election –although a proposed Tax Reform White Paper may cover GST reforms which would be taken to the electorate at the next election.
• Abolish the carbon tax.
• Abolish the mining tax (MRRT).
• Discontinue the tax loss carry-back measure (linked to the MRRT).
• Discontinue the small business instant asset write-off (Currently $6,500).
• Remove accelerated depreciation for motor vehicles for small business (currently $5,000).
• Introduce a 1.5% levy on companies with taxable income above $5 million to fund a Paid Parental Leave (PPL) Scheme. The scheme will commence on 1 July 2015 and give mothers six month’s leave based on their actual wage. (capped at $150,000) or the national minimum wage (whichever is greater), plus super.
• The superannuation guarantee will increase from 9% to 12%, but will be delayed by 2 years, so that the 12% target is achieved in 2021 rather than 2019.
If you require clarification in relation to what the Coalition government will mean for you or your business, The Quinn Group’s lawyers and accountants can provide you with the advice you are after Contact us by calling 02 9223 9166 or submit an online enquiry.