Following on from our newsletter article last month, the Treasurer has released a tax discussion paper on 30 March 2015. The purpose of the paper is to open the tax reform debate that will lead to the Government providing a more definitive policy direction prior to the 2016 election. The paper gives us the areas that the Government is targeting for reform and those that are no go zones. A summary of these are listed below.
Clearly we will also get an understanding of some of these in the Federal budget which is due to be announced on Tuesday 12 May by the Treasurer.
Tax discussion paper summary:
- Tax on super investment earnings
- Flat rate of tax on superannuation contributions
- 50% discount on sale of property/shares
- Dividend imputation system
- Refining the myriad of tax structures used by accountants
- Reinvesting money in private companies and trusts and the complex tax rules
- Fringe benefits tax system
No go’s include:
- Salary sacrificing into superannuation
- No tax on withdrawals of super either in pension phase or lump sums when aged over 60 years
- Capital gains tax exemption on principal place of residence
- Estate tax on deceased estates
- Negative gearing