Henry Report – highlights

From our June, 2010 issue

 

 The following are the highlights of the Government’s response.

  •  A Resource Super Profits Tax (RSPT) will be introduced on 1 July 2012 at a rate of 40% on profits made from the exploitation of Australia’s non-renewable resources;
  • The States and Territories will be provided with new, ongoing infrastructure funding, with an initial total amount of $700m in 2012/13;
  • A refundable resource exploration rebate will be provided to companies, set at the prevailing company tax rate, for exploration expenditure carried out in Australia from 2011/12;
  • The company tax rate will be reduced to 29% from 2013/14, and to 28% from 2014/15;
  • The company tax rate for “eligible small business companies” will be reduced to 28% from 2012/13;
  • The immediate write-off for assets of small businesses will be extended to assets valued at less than $5,000 from 1 July 2012;
  • The superannuation guarantee charge will be increased by annual increments until it reaches the plateau level of 12% by 2019/20;
  • The entitlement to the SGC will be broadened by lifting the maximum age threshold from 70 to 75 years of age;
  • The concessional contributions cap will be raised to $50,000 per year for workers who are 50 and over and who have superannuation balances of under $500,000; and
  • A new Government superannuation contribution will be created which will pay up to $500 for workers with adjusted taxable incomes of up to $37,000.

 

The measures that the Government has announced that it will implement that may affect individuals are discussed in more detail below.

This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.