With the Federal election to be held on Saturday, all but a few
campaign and policy announcements are yet to be made. In this
article, we have cut through the spin and rhetoric to put a spot
light on the key tax-related announcements that both major parties
have made. There is a clear difference between the major parties,
primarily due to the Liberal Party's commitment to repeal the
Mining Tax and Carbon Tax.
No industry is awaiting the election more keenly than the Salary
Packaging industry. They will breathe a sigh of relief if the
Liberal National Coalition wins Government, ensuring the status quo
will be maintained in respect of the FBT rules for motor vehicles.
However, if the Australian Labor Party returns to power it will
sound the death knell for a large slice of the Salary Packaging
industry, as employers will now move away from packaging motor
vehicles for their employees in favour of providing car allowances
Support for the Small Business sector has been repetitively
spruiked as a key focus for both parties, each promising to cut
red-tape. However, these commitments are still pretty light on when
it comes to specific policy announcements and most small businesses
would justifiably be skeptical about both parties ability to
deliver on these promises if their historical record on this issue
is any guide.
The (Clive) Palmer United Party has added some colour to this
election campaign and they have announced some significant proposed
tax decreases that would no doubt reduce the cash flow burden on
both small and big businesses. The theory being this cashflow
saving is spent thereby stimulating the economy and ultimately
creating jobs and positively impacting on tax collections. The
Greens Party has also proposed lower tax rates and further
depreciation incentives targeted at small businesses.
While the policies and promises will continue to roll in right
up to Election Day, we have outlined below what the major parties
have advised the electorate so far:
Note: All policies provided are from the respective party
websites and statements made by the leaders of each
Other Political Parties
Aside from the major parties, the other parties have made
various tax policy statements.
The key tax reforms currently announced by the Greens include a
small business tax rate reduction of 2% from 1 July 2014 and
raising the instant asset write-off from $6,500 to $10,000. The
Greens' position on the Emission Trading Scheme is to try and
stop the Liberal Party's dismantlement of it.
Taking a more aggressive approach, the Palmer United Party has
vowed to scrap Fringe Benefits Tax and reduce the personal income
tax rates by 15 per cent from July 2014. The Party believes this
will inject additional money into the economy and will stimulate
spending and growth.
Because of the high costs, royal commissions should only be convened to address issues of substantial public importance.
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