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Welcome To 'Your Advantage' Newsletter #18
The Good, The Bad & The Ugly
Heading into the new financial year, we have seen the release of the Federal Budget together with the handing down of both Victoria's and South Australia's State Budgets.
The 12th Costello Federal Budget handed down reported a $10.6 billion surplus daring Labor with a suite of new election promises. Being an election year, additional tax cuts, plus significant expenditure (principally in relation to road and rail infrastructure), safe guarding water supply, higher education and defence spending initiatives were handed down. However, from a business perspective, this year's budget was largely a non-event! More will no doubt be promised nearer the election!
The Victorian State Budget delivered over $1.5 billion dollars of initiatives to cut costs for business, promote industry and exports and generate new jobs and investments.
Land Tax cuts, WorkCover premiums, motor vehicle duty and payroll tax (minor only) were some of the main areas of change.
The Foley South Australian Budget apparently set out to "rebuild" SA. Infrastructure project spends of $28 million for a tram bridge and $115 million over four years for an old outdated rail network (why not electric rail?), a new $1.7 billion hospital are commendable but the average taxpayer will pay higher bus fares, water charges and car registrations.
For business, payroll tax rates have been reduced which is of course welcomed but it's fair to say the cuts are very much underwhelming for most small businesses. Payroll tax has long been a thorn in the side of SME's and given SA's status as largely an SME State has been a major issue in holding back great SA SME's on the national competitive front. The announcement is well short of most business lobby groups' call for a 4.5 - 4.75% rate and an increase in the threshold to $800,000!
Where are other initiatives such as land tax reform (increase minimum land tax value to $250,000) and reductions to, say 3, re properties subject to land tax, abolition of stamp duty for first home buyers, public sector reform and the abolition of Adelaide City Council and the formation of three "super councils"? It would appear when the Government says we are "looking to the future", they don't mean you the residents and taxpayers. They really mean them ie self preservation!
What an opportunity lost! What a disappointment!
On a lighter note, in our "smart tax guide" series of articles, we provide some useful ways to generate wealth and reduce your tax obligations.
Hopefully you have engaged Advantage One to provide you with some clever tips going forward.
This newsletter will provide you with a wide range of business related news and information, useful knowledge, profile some of our team members, introduce some of our clients and keep you informed of upcoming seminars and events.
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Other new articles and information recently listed:
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