A Tax Plan for Our Future
The Government is determined to ensure that Australia makes the most of the opportunities presented by commodity boom mark II.
Our tax reforms will ensure Australians get a better return from this commodity boom, and that the proceeds aren’t wasted like they were under the previous Liberal government.
We will get a fairer return for the Australian community from our non-renewable natural resources, through our resource rent tax framework. The 30 per cent Minerals Resource Rent Tax will apply to iron ore and coal projects. The existing 40 per cent Petroleum Resource Rent Tax will be extended to apply to all onshore and offshore oil and gas projects.
We understand that growth in the resource sector requires constant reinvestment by Governments and businesses. We will address potential capacity constraints in resource regions by building new and better roads, rail and ports, funded out of a $6 billion regional infrastructure fund.
The success of our resources sector can make it harder for other parts of the economy to compete. We will make the entire economy more competitive, through business tax reforms. We will cut business taxes across the board, especially for small businesses who will benefit from a head start on the company tax cut. Small businesses will also be allowed to immediately write off any new business asset worth $5,000 of less, providing tax relief and simplification.
We will ensure we have something to show for the boom, through a range of superannuation reforms. We will increase the superannuation guarantee to 12 per cent, extend the superannuation guarantee to older workers up to the age of 75, provide a new superannuation concession for lower income earners and expand superannuation concessions for older Australians making catch up contributions.
The Government also supports savings outside of superannuation and will introduce a new 50% tax discount for up to $1,000 of interest income from saving deposits held with any bank, building society or credit union, as well as interest on bonds, debentures and annuity products.
The Government will simplify the tax system for businesses and individuals. Small businesses will benefit from the instant write-off of assets worth up to $5,000, and simplified depreciation of other assets. Individual Australians will benefit from an optional standard deduction, worth $500 in 2012-13 and $1,000 from 2013-14 onwards. When fully implemented it is expected that 6.4 million individuals will be financially better off by an average of $192, simply by claiming the $1,000 standard deduction instead of going through their individual claims for work related expenses and the costs of managing their tax affairs.
Go to www.futuretax.gov.au for more information.