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A Budget for now and the future

Publication date: 03 May 16 | Source: THE TAX INSTITUTE

The Tax Institute welcomes positive changes to the tax system that promote fairness for all Australians.

“The Budget delivered today is a good step in the evolution of our tax system,” said The Tax Institute’s President Arthur Athanasiou.

The Tax Institute has long argued for changes to superannuation rules to adequately provide for retirement benefits and not to accumulate wealth or for estate planning purposes. This includes lowering the point at which high income earners pay additional tax on their contributions.

“The superannuation measures better target tax concessions in the superannuation system to make the system more equitable without compromising stability,” Mr Athanasiou said.

“The Government has also finally adopted our proposals for reducing red tape, such as allowing both the self-employed and employees to claim a tax deduction for their personal superannuation contributions.”

The Tax Institute also welcomes a number of the concessions included in the 10 year enterprise tax plan such as expanding the 2015-16 Budget’s small business measures to entities with a turnover under $10 million and the cut to the corporate tax rate.

“We have consistently called for a cut to the corporate tax rate to 25%. While we would have liked to have seen this happen sooner, we welcome the Government’s plan to reduce the rate to 25% for all companies over the next 10 years,” Mr Athanasiou said.

The Budget also contains a number of measures to crack down on multinationals.

“It’s positive to see the boost to the ATO to address multinational tax avoidance, however the Diverted Profits Tax is a measure that avoids the heart of the issue,” Mr Athanasiou said. “Our international tax rules are struggling to keep up with the pace of change in global business. Fundamental multilateral change is required.”

For more information contact:
John Hanrahan, Lighthouse Communications Group, 0411 212 965
Stephanie Conway, The Tax Institute: 02 8223 0011

NOTE: The Tax Institute will be hosting a breakfast with the Treasurer, The Hon Scott Morrison MP, on Thursday 5 May in Sydney, where the Treasurer will detail the key tax measures of the 2016-17 Federal Budget.  Media are welcome to attend.  For more information about attendance please contact John Hanrahan on 0411 212 965.