New Financial Year Resolutions

Written by Stephanie Caredes, CTA

Welcome to the new Financial Year!

We hope members have been enjoying the preambles that have been prepared by our National Technical Committee Chairs so far. This is an opportunity for members to see what our National Technical Committees work on on behalf of the broader membership. More preambles from our Chairs are to come in the following weeks. 

A new year is always a great time to reflect on what one might want to achieve in the upcoming year – set goals, tick things off the bucket list, that kind of thing. A new financial year should be no exception. 

30 June however is traditionally a frantic time for most members. It bodes the start of the next Tax Time, Tax Time 2019 in this case, clients always want to wrap up transactions that have been hanging around for a while (or they just need to get them done because it is the end of the financial year!), a few ‘EOFY’ parties happen, not leaving much time to plan for 1 July. 

The back-to-back frenzy of events of the 2 April Federal Budget and 18 May Federal election have preceded a lull which naturally occurs while a new Government gets itself together to work out its plans for its term after it has formed government. That lull in June finally ended with Parliament sitting this week. 

The new 46th Parliament sat for the first time on Tuesday and rose yesterday for a little break before it sits again on 22 July. Did our Parliament need a break already? I’m not so sure. They had a major piece of government business to deal with this week.  The personal tax cuts plan, the centrepiece of the 2019-20 Federal Budget, was what it had to ponder this week. 

Implementation of these personal tax cuts is a major goal the Institute wants to see the Government achieve. Our media release this week, ‘Don’t let politics get in the way of good policy’, makes this clear. Some politicking occurred in the House of Representatives on Tuesday, with the Labor party suggesting the following amendments to the Bill:
  • Opposition Leader Anthony Albanese thought the title should become ‘Treasury Laws Amendment (Tax Relief So More Australians Keep More Of Their Money But Not For A Really Long Time) Bill 2019 (if you don’t believe me, here is the link); and
  • on a more serious note, Shadow Treasurer Dr Jim Chalmers suggested (among other things) bringing forward the increase in the threshold between the second and third tax brackets from $90,000 to $120,000 to the 2019-20 income year instead of from the 2022-23 income year and has also proposed a 32.5% rate apply to the $45,000 - $200,000 tax bracket from 2024-25 instead of the 30% rate the Government wants to implement. 
As the time of writing (2pm, Thursday 4 July 2019), the Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019 was still being debated in the Senate. Perhaps by the time you read this over your morning coffee we will have a result of whether the Bill passed the Senate in the form the Government wanted to pass these measures or whether there have been some parts excised, like Stage 3 of the plan. Or, the Bill simply has a new, more colourful name! 

Have you thought about any tax policy resolutions you would like the Government to make this financial year? Members, send us your thoughts via the Vine Feedback inbox

Kind regards, 
Stephanie Caredes, CTA


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