Happy New Year to all. With a change of Government last year and an unprecedented level of political turnover that saw Australia appoint three Prime Ministers within the same calendar year, it is understandable that many taxpayers and business owners are seeking clarity on which tax policies are moving forward and which have been abandoned.
To assist, we have summarised the major announced changes and non-changes to the Government’s current tax agenda.
Announcements not proceeding
The Government has confirmed that several measures proposed by the previous administration will not go ahead. These include:
• repeal of the Carbon Tax and the Minerals Resource Rent Tax
• removal of the statutory formula method for calculating car fringe benefits
• payment of R&D tax credits on a quarterly basis
• introduction of additional tax on superannuation pensions earning over $100,000
• capping of self-education expense deductions
The withdrawal of these measures means that existing rules continue to apply in each of these areas.
Announcements proceeding
The Government has also confirmed that the following tax changes will proceed:
• revised capital gains tax treatment of earn-out arrangements
• changes to thin capitalisation legislation to tighten rules around cross-border financing and debt deductions
These measures form part of the Government’s ongoing focus on investment integrity and strengthening Australia’s tax base.
What this means for you
For individuals and businesses, these confirmations provide more certainty for tax planning in the year ahead. However, further detail on implementation and timing may continue to emerge as legislation progresses.
If any of these changes are likely to impact your tax position, future investments or business planning, Bramelle Partners can provide tailored advice to help you understand your obligations and opportunities.
