Henry tax review
The Budget also contained a number of measures released last week in the Government’s response to the Henry Review, including:
- A reduction in the corporate tax rate to 29% from 2013/14, and to 28% from 2014/15;
- The reduction in corporate tax rate for ‘eligible small business companies’ to 28% from 2012/13;
- Immediate write-off for assets of small businesses extended to assets valued at less than $5,000 from 1 July 2012;
- Increasing the superannuation guarantee charge (SGC) by annual increments until it reaches 12% by 2019/20;
- Increasing the SGC maximum age threshold to 75 years of age from 1 July 2013;
- Provision of a new Government superannuation contribution which will pay up to $500 for individuals with adjusted taxable incomes less than $37,000, from 1 July 2012;
- Raising the concessional contributions cap to $50,000 per year for individuals who are 50 and over and who have superannuation balances less than $500,000, from 1 July 2012; and
- A proposal to introduce a Resource Super Profits tax on 1 July 2012 at a rate of 40% on profits made from the exploitation of Australia’s non-renewable resources
