The Henry Tax Review
Summary of the principal recommendations accepted by the Government and link to ABC Lateline Business report highlighting the business community's response.
- Details
-
| Location: | Melbourne |
| Division: | Tax Consulting |
| Publish Date: | 4/05/2010 |
Link to ABC Lateline Business report “Business reacts to tax reform plans” highlighting the business community’s response to the Government's reaction to the Henry tax review - segment features HLB Mann Judd Melbourne tax partner Mark Pizzacalla.
As you will by now be aware, the Federal Government released the Ken Henry report in relation to Australia's Future Tax System at 2.30pm on Sunday 2 May 2010.
The principal recommendations that the government has indicated that it will accept include:
- Lowering the company tax rate to 29% from 2013-14 and to 28% from 2014-15. Small business will move to a 28% company tax rate from 2012-13.
- A new Resource Super Profits Tax on natural resource projects at a rate of 40% on profits.
- An instant write-off for small businesses of assets valued at under $5,000.
Independent of the Henry review recommendations, the government also announced a number of superannuation changes which include:
- An increase in the Superannuation Guarantee rate to 12% over six years to 2019-20.
- A Government contribution up to $500 for low income earners from 1 July 2012.
- Concessional superannuation contribution caps for those nearing retirement from 1 July 2012.
Of the 138 recommendations from the Henry Review, a further 114 are still subject to “mature tax debate” in the coming years. It is therefore important to understand that this is only the first of series of announcements that the government is likely to make over the next 3-6 months, particularly as we approach the federal election anticipated to be held in October.