The long anticipated Henry Report on our tax system was released by the Government on 2 May 2010. Sydney tax accountants, Gotsis Rubic & Barbariol, note that only a small number of the 138 have been adopted by the Government as yet, some others maybe dealt with in the budget to be presented by the Government on Tuesday, 11 May, 2010 (Latest Budget Updates in detail: see http://www.budget.gov.au), Some have been left in abeyance and some rejected outright.
Changes approved by the Federal Government but Subject to Passage by Parliament
Company Tax and Small Business Benefits
- The Company rate of tax to be reduced to 28% as from 2012/13 financial year for small business (currently 30%)
- For other businesses, the rate will reduce to 29% from 2013-14 and to 28% from 2014-15
- Small Businesses will also be able to write-off (i.e. claim a deduction) of assets that cost less than $5,000 in the year of purchase instead of depreciating them over a period of years.
- In addition, small businesses will be able to depreciate all other assets at the rate of 30% per annum. The Government intends to have these measures apply from 1 July, 2012.
Superannuation
- Starting from 1 July, 2013 the Superannuation Guarantee (SG) Contribution rate paid by employers to their employees will increase from the current rate of 9% to 12% by the 2019-20 year. The table below shows the gradual increase.
| Income Year | SG contribution rate (%) |
| 2013-14 | 9.25 |
| 2014-15 | 9.5 |
| 2015-16 | 10 |
| 2016-17 | 10.5 |
| 2017-18 | 11 |
| 2018-19 | 11.5 |
| 2019-20 | 12 |
- From 1 July, 2013, the SG age limit will be raised to 75 which means that workers aged from 70 to 74 will have SG contributions made on their behalf by employers. This change matches the age limit for contributions by the self-employed.
- From 1 July, 2012, the Government will match concessional contributions made by taxpayers with adjusted incomes of up to $37,000. The Government’s maximum contribution will be $500p.a. This will be in addition to the existing contribution scheme.
- Concessional Superannuation Contributions
- At present, employees aged 50 or over can contribute up to $50,000 without exceeding the limit as set by the Government up to the year ending 30 June, 2012. Now the Government has extended it beyond 30 June, 2012. As from July 2012, taxpayers over 50 will be able to continue contributions up to $50,000 p.a. provided the money in their superannuation account is less than $500,000.
Tax on Resources “Super” Profits
This tax is now being renegotiated with the Mining Companies.
