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FletcherTax
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As most of you are aware, the great Henry Review flooded our tv screens yesterday. Overall, I think it was a weak response to such an extensive 2 year tax system review. I would feel very disheartened if I was Ken Henry.

Small businesses were one of the main targets of this Review (in a positive light). Key measures include:

  • Tax rate to be cut to 28 per cent from 2012/13 for Companies vs current 30% flat tax rate
  • Immediate write off of assets valued at less than $5000 (from July 1, 2012) vs current $1,000 threshold
  • All other assets to be depreciated at a single rate of 30% (from July 1, 2012) vs current different rates and pools for different assets
  • 12 per cent superannuation guarantee, increased incrementally, in 2019/20 vs the current obligation of 9%
  • Govt contribution of $500 for workers earning up to $37,000 from July 1, 2012.
  • No change to GST rate or base

In case your wondering – this will all be funded by a new tax issued to the Mining Industry!

Following link summarises the gains and losses with their expected incoming times: http://www.smh.com.au/business/winners-and-losers-from-the-henry-tax-review-20100502-u0zj.html

As you can see, most things don’t effect the average taxpayer or small business for quite some time.

Burgo, post: 37054 wrote:
Ive always written assets under $ 5000.00 off each financial year.

If I bought a machine for $ 3500.00 why would I want to claim depreciation so we wrote it off as a deduction. The ATO never objected to this practice.

Relieved I’m not your accountant Patrick – I’d very very concerned! ;)