SURPRISE ELECTION RESULT – WHERE TO FOR TAX POLICY?

Senior Associate, Employment Law and OH&S Dispute Resolution and Litigation - Harwood Andrews
Principal Lawyer - Harwood Andrews Lawyers

The Coalition’s ‘miracle’ win may not have been foreseen by the polls or the pundits, however either way the votes fell, the tax and superannuation landscape was up for change.

While the final make-up of Parliament gets ironed out (including who holds the balance of power particularly in the Senate) there are a few things we know will not happen. The following Labor policies will be assigned to the election scrap-heap:

  • increasing the income tax offset for low and middle income earners;

  • increasing the Budget repair levy;

  • abolishing negative gearing on investment properties;

  • reducing the CGT discount to 25% (from 50%);

  • abolishing refunds of franking credits;

  • taxing trust distributions at 30%;

  • capping the cost of managing tax affairs at $3,000;

  • capping interest deductions for multinationals at the world-wide gearing ratio;

  • no Second Commissioner for Appeals at the Australian Taxation Office; and

  • lowering thresholds for tax transparency and introducing added ‘black economy’ measures.

Additionally, this is a long list of legislation and reform proposals of the Coalition that effectively lapsed on calling the election, but which are now likely to be on the table or being carefully considered in Canberra over the coming months. These include:

  • the changes to Division 7A;

  • removing the main resident exemption for foreign residents (including expatriates);

  • the superannuation guarantee amnesty;

  • increasing the maximum SMSF members from 4 to 6;

  • the extension of director’s penalty notices to GST;

  • the introduction of director identification numbers;

  • changes to deductions associated with holding vacant land;

  • the taxation of licensing fame or image rights;

  • changes to the taxation of testamentary trusts;

  • research and development reforms; and

  • personal tax cuts.

For the private group and SME market, most attention will be focused on the status of the Division 7A reforms.

For more information, please contact:

Rod Payne
Principal
T: 03 5226 8541
E: rpayne@ha.legal

or

Alasdair Woodford
Senior Associate
T: 03 5225 5217
E: awoodford@ha.legal

at Harwood Andrews

Sonia McCabe

Senior Associate, Employment Law and OH&S Dispute Resolution and Litigation - Harwood Andrews

Sonia provides advice, representation and regular business support to employer clients in a wide variety of employment and industrial relations matters, including defending and resolving dismissal, discrimination and general protections claims, advising on transfers of business and employment, representing employers in union disputes and advising on disciplinary procedures, post-employment restraints, redundancies and protection of business information and intellectual property.

Sonia applies her dispute resolution background and experience to assist employers in taking commercial and proactive steps to prevent and minimise their employment risks, including by ensuring that employment documents such as employment agreements, policies and enterprise agreements are legally compliant, suited to the needs of each client’s business and provide future protection for employers.

Harwood Andrews

Paul Gray

Principal Lawyer - Harwood Andrews Lawyers

Paul brings experiences as in-house counsel, private legal advisor and business owner to his role as a Principal Lawyer with Hardwood Andrews.

Aligning with his philosophy that good professional advice can be transformative to business Paul is valued for distilling issues down to what is really important and being prepared to make a risk call based on judgement and experience.

Harwood Andrews Lawyers

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