It seems the Federal Election results have surprised most pundits.

Building up to the election, the hot topics for discussion seemed to focus on many tax related matters – so let’s look at the impact from a tax viewpoint.

The following Labor proposals will no longer be on the agenda:

  • No refund arising from excess Franking Credits – instead you will continue to be eligible for a refund as the rules presently operate;
  • Reducing the CGT discount to 25% on sale of property held for greater than 12 months is gone and the more favourable 50% discount will continue;
  • The negative gearing restrictions are also gone, meaning the current negative gearing will remain available (negative gearing arises when your costs [usually driven by interest expenses] of owning a rental property exceed the revenue);
  • The proposal to tax trusts will not go ahead – present rules of beneficiary paying tax in own names will continue; and
  • Limiting the tax advice deductibility to $3,000 – the present position remains so taxpayers can obtain a deduction for all necessary costs.

With the Coalition returning to Government we expect they will pursue the implementation of tax cuts as detailed in the April budget. We will just have to wait and see how the Senate responds to this plan.

Ian Hogbin

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.

Some of Our Clients

Subscribe to Our Newsletter

Get all the latest news from HQB delivered direct to your inbox

Your Name (required)

Your Email (required)

 
12

Days left until the new financial year. Get your tax sorted today. Click here to get started.