Small business has been promised a temporary increase to the instant asset write-off from $6,500 to $10,000, though the instant asset write-off could also be discontinued altogether. A greater number of businesses have been promised some assistance with their GST compliance if they are able to lodge their BAS annually.
Companies have been offered a company tax cut of 1.5%. The increase to the superannuation guarantee may be deferred by two years. The newly implemented loss carry-back measure may be discontinued.
A $2,000 cap on the amount of self-education expenses that can be claimed may be imposed. The statutory method used to calculate car fringe benefits may stay or may go.
Once the new government has been formed, we will all have a better idea of how the tax landscape will look; what new measures will be introduced and what existing measures may go. However, the main challenge still remains: tax reform, which requires a mature debate to ensure a sound tax system is constructed for the future.
The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.