Now that the Abbott government is settling in, it is worthwhile to look at their promises and the commitments that they made in the run-up to the election.
Here’s a rundown on some of the more important commitments, although many don’t have effective dates:
- Self education expenses: There will be no $2,000 cap on self-education expense deductibility.
- FBT and cars: The statutory formula method for car fringe benefits will not be abolished.
- Company tax rate to be cut to 28.5% from 1 July 2015.
- No changes to the GST rate before the next election – although a proposed Tax Reform White Paper may cover possible GST reforms.
- Abolish the carbon tax.
- Abolish the mining resource rent tax (MRRT).
- Discontinue the tax loss carry-back measure (linked to the MRRT).
- Discontinue the small business instant asset write-off (currently $6,500).
- Remove accelerated depreciation for motor vehicles for small business (currently $5,000).
- Introduce a 1.5% levy on companies with taxable incomes above $5m to fund a Paid Parental Leave (PPL) Scheme – from 1 July 2015 – and give mothers six month’s leave based on their wage (capped to an annual $150,000 salary) or the national minimum wage (whichever is the greater), plus super.
- The superannuation guarantee will increase from 9% to 12%, but will be delayed by 2 years, so that the 12% target is achieved in 2021 rather than 2019.