No doubt the lead up to last night’s Budget Announcement has left a lot of Australians confused and concerned about the nation's future on a social, economical and political level. Perhaps the announcement didn't help reduce these concerns.
The good news is that the majority of Azure Group clients do not smoke so will not be impacted by the additional smokers levy, the bad news is that the changes of the past year and the last nights budget will further sting our Small Business and High Net Wealth client base.
We were inspired by the Henry Review that targeted simplification of our tax and compliance system. Unfortunately it appears this was a white elephant and the reforms are unlikely to be realised in the short term. In last year's 2012-13 Budget, the Government released details of what it called its "tax reform roadmap". It reiterated the principles for tax reform being a stronger, smarter and fairer tax system. The Government foreshadowed tax changes still to come, including:
- progressive increases in the super guarantee levy
- introducing non-resident CGT non-final withholding tax;
- gradually increasing the Age Pension qualifying age to 67 by 2023;
- in 2015, applying normal Age Pension deeming arrangements to new superannuation account-based income streams.
I am not seeing this as simpler or fairer for our clients. I am still talking to you and it is obvious:
- you are concerned our system is getting more complex and much more difficult and costly to administer
- you are concerned with the frequency of changes to tax and related business laws
- you are concerned with the tax offices poor administration, for example payment of tax refunds
- you are not happy that the reforms are not delivering promised tax reductions to company and personal tax rates
- the super changes are now more costly and put more responsibility and costs on business owners
I am feeling that the Government continues to shift more pressure and responsibility to SME businesses and High Net Wealth individuals. It is wrong and very disappointing and a disincentive to each of us.
In the below artciles I discuss the key principles of changes from the past budget to the budget last night in more detail. All these changes are important to read and understand. They will definitely impact you or your staff in one way or another.
Our Tax Partner, Tanya Moran, explores changes for businesses with turnover of over $20 million, as well as changes for international business and foreign investors in Australia.
Please take the time to click through the links below to ensure you're on top of everything you need to know about these major changes.
This afternoon we'll be sending through two videos looking at the major tax changes for SME's and the superannuation changes that you should be across.
We have knowledgeable advisors only a phonecall away if you have concerns about how the Budget is going to impact your personal situation. Do not hesitate to contact us for a confidential conversation today on (02) 9238 1188 or ourteam@azuregroup.com.au.
Regards,
Michael Derin
Managing Partner - Azure Group
Resources
The true impact on SMEs and high net worth individuals
Big business with turnover of over $20 million
International businesses and foreign investors in Australia
Video: Michael Derin gives a summary of the Budget
Video: Norman Howe gives a summary of the superannuation changes
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