Yet again, this has proven to be a quiet budget for private clients, with few specific measures announced. This is largely a reflection of the combined effect of this budget's revenue raising focus and the Government's commitment to supporting small to medium business. In other words the Government has chosen to spare this sector from revenue raising measures.
However, some measures covered elsewhere (for example, the increase in the thin capitalisation de minimis threshold from $250,000 to $2 million) will have an impact on this sector of this economy.
Although this sector can be grateful that the revenue raising measures are largely aimed at large taxpayers, the lack of progress on much needed structural reform is disappointing. One of the most significant of those reforms is the re-write of the trust taxation regime. Disappointingly, no further details of this measure are included in this budget. The procrastination in relation to the taxation of trusts is a direct result of the Government's concentration of resources on revenue raising reforms. This sort of prioritisation has meant that many worthwhile proposed structural improvements to the tax system have been shelved.
Other perennial pre-budget scare mongering related to removal of negative gearing, changes to small business tax concessions thankfully did not eventuate.
Venture Capital
One initiative that the small and medium enterprises may be able to access will be the $378m Venture Australia package to stimulate Australia's venture capital market.
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Private Clients - Moore Stephens Federal Budget 2013 Insights
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