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Government announcements of interest to small business and accountants alike

As the original accounting office for small business, we like to provide infomation that is useful as well as news that provides good news and relief to businesses in Sydney and across Australia.

With the economy flat lining at the moment and the Reserve Bank reticent to lower interest rates any further due to the high Australian dollar, genuine tax reform and certainty from our nation’s leaders cannot come soon enough.

Federal Treasurer Joe Hockey yesterday announced the new Governments findings into proposed and pending tax reform. They have announced that the current 92, yes all 92!, proposed tax and superannuation measures are under review. More importantly for the short term there are five key announcements.


1. The controversial changes to FBT treatment of motor vehicles by the former Rudd Government will not proceed. You can just hear the salary packaging and local car manufacturers breathe a collective sigh of relief.


2. The cap of $2,000.00 on self-education expenses will not proceed. Again, common sense prevails.


3. The proposed 15% tax on superannuation incomes exceeding $100,000.00 will also not proceed. The average Joe (not Hockey) may see this as an unfair tax break for the top end of town, but at least it provides certainty and therefore extra confidence in our superannuation system.


4. There has been much talk about the unfair advantage importers have on importing goods under $1,000.00 and the adverse impact this had on our local retailers. The Government has elected not to touch this issue and maintain the status quo. Perhaps they'll revisit this in the future.


5. The Rudd Governments proposed increases to cigarette excises will be honoured by the Abbott Government, netting an extra $5 billion over four years.



So in summary, of the 92 pending or proposed changes, 18 will not proceed and the remaining 64 will be subject to further review to be finalised by 1 July 2014.

For more information on how these changes can and will impact your small business, contact m.a.s accountants, the original accounting office for small business.

 
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