On Sunday, the Coalition claimed an election victory and Tony Abbott became Australia’s 28th Prime Minister.
With the change in Federal Government new tax proposals will be presented to Parliament. Below is a summary of the Coalition’s key tax election proposals relating to corporate and personal tax. All proposals are subject to support and approval by the Senate.
What Does This Mean For You?
The Coalition’s flagship proposals were to abolish both the Carbon and Mining taxes. Other tax-related promises to voters included:
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 carryback 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);
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 Tax-Related 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); and
to provide an exploration incentive.
The Coalition Federal government will commence moving forward on these polices. We will keep you informed on any developments in the tax arena. Please contact Murray Howlett from our Taxation Services Division on (07) 3023 1300, if you would like to discuss any of the above mentioned proposals 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.