COMPANY TAX CUT: In the 2016-17 Federal Budget, the Government announced that it would reduce the company tax rate to 25% over 10 years. The reduction will be phased in, depending on the company’s size (ie it’s aggregated annual turnover). Small businesses will benefit sooner. The phase-in for all companies will be completed in the 2026-27 income year. A Working Paper, entitled “An analysis of the long-term effects of a company tax cut” has been released on the Treasury website.
BUDGET MODELLING: The Government’s tax and superannuation measures announced in the 2016-17 Budget include a number of changes to tax and superannuation. It is estimated that these changes will permanently lift the level of GDP by just over 1% in the long term. A note – Economy-wide modelling for the 2016-17 Budget – has been released on the Treasury website describing how the GDP impacts of the significant tax measures were estimated using Treasury’s economy-wide model and presents the results of the external modelling.
WET: In the Budget, the Government announced that it would address integrity concerns with the wine equalisation tax (WET) rebate. The Wine Equalisation Tax Rebate Consultative Group Report has been released on the Treasury website. It is the Consultative Group’s report to Government which sets out their recommendation to reform the WET rebate.
PORTFOLIO BUDGET STATEMENTS: The purpose of the 2016-17 Portfolio Budget Statements is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. Includes the ATO, Treasury, ASIC, Inspector-General of Taxation, etc.
[LTN 85, 5/5/16]