2014 Federal Budget - Where Are We Now?
The 2014/15 Federal Budget handed down a number of months ago received a mixed reaction amongst commentators and was less popular with sections of the voting public.
The government has had very public challenges in enacting the various changes due to the split of power in the various Houses. Given this an update of the status of the main measures is outlined below:
As can been seen by the list above, there are more items awaiting legislation and / or enactment than have actually been passed (the balance of announcements remain just that). As a result, this provides significant uncertainty for individuals, and businesses when looking ahead and trying to plan.
The above impasse in the Houses is unlikely to be resolved soon and therefore the best strategy appears to be to assume that the measures will come in, and planning your business matters accordingly. For example, businesses and their advisers should be considering how the change in company tax rate is likely to impact dividend policies when balanced with the budget repair levy, and whether recoupment of deferred tax balances can be accelerated or income derivation deferred to a later period.
Should you have any queries in relation to the above, or any other budget measures please contact your relevant ESV Engagement Partner on 9283 1666.
Article by David Prichard