The Government released its tax discussion paper on 30 March 2015 and is currently seeking submissions on the issues raised in the paper. You have until 1 June 2015 to lodge your formal submission.
Issues raised in the report and possible outcomes (if acted upon) include:
- Increase to the GST if “unanimous support of the state and territory governments, the endorsement of the Australian Government and the passage of relevant legislation by both Houses of the Australian Parliament” can be achieved. The alternative and potentially more likely scenario is to increase the base of the GST and remove exemptions;
- Reduce company tax, with the potential removal of a number of small business concessions;
- Increase the Medicare levy;
- Index income tax rates;
- Remove several tax concessions including capital gains concessions (50% general discount and small business CGT concessions);
- Review the way savings and investments are taxed, including superannuation;
- Review tax of particular entity structures with a particular focus on trust structures;
- Restructuring of the FBT system;
- Potential restructuring of the imputation system;
- Greater focus on tax benefits received by non-resident individuals, business and investors – where the tax benefit has no investment incentive trade off.
Stay tuned for more information as it comes to hand.