Henry Review - 2nd May 2010
Federal Tax Policy Statement
The Federal Government today released a "10 year agenda" to reform the tax system and will make the following policy announcements:
- A phased cut in the company tax rate from the current 30% to 29% (2013-2014 income year) then to 28% (from 2014-2015 income year) with small business getting a cut in their company tax to 28% applying from 2012-13
- A new instant write-off for assets worth up to $5,000 for small businesses
- A gradual increase in the superannuation guarantee to 12%. This will be done in small increments from 1 July 2013 to 1 July 2019, with increments of 0.25 percentage points on both 1 July 2013 and 2014 and subsequent annual increments of 0.5 percentage points per annum.
- From 1 July 2012 Government will provide a new superannuation contribution of $500 for workers with an income of up to $37,000
- The introduction of a Resource Super Profits tax at 40% effective 1 July 2012
- Establishing a Resource State infrastructure Fund
The Federal Government have also ruled out increasing the rate or broadening the base of the GST and will say they intend to announce plans to simplify tax returns for everyday Australian in the lead up to the next federal election.
The Company tax reductions announced today by the Federal government will be offset by increases in the Employer Superannuation contributions that will force up employee costs in the Convenience Sector.
There was no announcement of increases in Fuel Excise taxes which is certainly a relief for AACS members. Further the report specifically rules out pegging fuel excise to CPI. Again this is good news for operators with fuel forecourts along with C-Stores.
The Henry tax Review has mooted a congestion tax for large cities in Australia. This is a potential issue for the C-Store sector as deliveries to stores could attract charges depending on what time of the day these deliveries happen.
You can download a copy of the full report below.