The Budget details have been released. The thrust of the Budget is delivery of election announcements; the Budget reveals the conditions and costings.
Worth noting from the Treasurer’s speech:
Supporting business
Mr Speaker, the Government supports the aspirations of Australian business, including small business, for a simpler tax system and less regulation.
Our nation has the potential to be a financial services hub in the Asia Pacific Region – the fastest growing region in the world. To support this ambition, the Budget begins the process of significantly reducing the withholding tax, by reducing the current interim rate of 30 per cent to a final rate of 7.5 per cent for most non resident investors.
This Budget confirms our commitment to a comprehensive agenda of regulation reform – cutting red tape and making it easier for business, particularly small business, to deal with government.
To improve innovation and productivity, the Government will invest $251 million over five years to establish Enterprise Connect Innovation Centres….
COAG Reform Fund
Where funds are used to finance capital projects with the States, they will be distributed to the States from the three new funds I have just announced through a new Council of Australian Governments (COAG) Reform Fund.
The COAG Reform Fund will also distribute funding provided in future budgets to the States for recurrent expenditure in areas of COAG national reforms, through new National Partnership payments.
In 2008 09, the States will receive $78.6 billion in total payments, an increase of 4.8 per cent. And new financial arrangements will allow all levels of government to work together to improve outcomes and reduce costs…
Australia’s future tax system
Tonight, I confirm the most comprehensive review of Australia’s tax system since World War 2. The Australia’s Future Tax System (AFTS) review will be reporting progressively from this July through to the end of 2009.
Treasury details
Revenue details are in Budget Paper 2 starting with Treasury’s delivery of the Government’s election commitments including the income tax cuts from 1 July 2008:
| Current | From 1 July 2008 | From 1 July 2009 | From 1 July 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Taxable income ($) |
Rate (%) |
Taxable income ($) |
Rate (%) |
Taxable income ($) |
Rate (%) |
Taxable income ($) |
Rate (%) |
|||
| 0 – 6000 | 0 | 0 – 6000 | 0 | 0 – 6000 | 0 | 0 – 6000 | 0 | |||
| 6,001 – 30,000 | 15 | 6,001 – 34,000 | 15 | 6,001 – 35,0000 | 15 | 6,001 – 37,000 | 15 | |||
| 30,001 – 75,000 | 30 | 34,001 – 80,000 | 30 | 35,001 – 80,000 | 30 | 37,001 – 80,000 | 30 | |||
| 75,001 – 150,000 | 40 | 80,001 – 180,000 | 40 | 80,001 – 180,000 | 38 | 80,001 – 180,000 | 37 | |||
| 150,001 + | 45 | 180,001 + | 45 | 180,001 + | 45 | 180,001 + | 45 | |||
Other Treasury -related announcements can be found here including:
- Family trusts
- Political donations — removing tax deductibility
- Capital gains tax — extend small business concessions
- Depreciation of computer software
- Employee share schemes — election requirements
- FBT refinements
- GST and the sale of real property
- Increasing the Luxury Car Tax
- Managed funds — changes to the eligible investment rules
- Taxation of Financial Arrangements
And here are the details of the Superannuation Clearing House Facility and First Home Saver Accounts.
