Much of the media coverage has revolved around the Labor Party’s controversial proposal to remove refunds of franking credits, however proposed limitation to negative gearing, halving of the capital gains tax (CGT) discount and imposing a minimum 30% tax rate on discretionary trusts are some of the other significant Labor Party policies.
If you are interested in finding out more please CLICK HERE to access a comprehensive outline of Labor’s tax and superannuation policies as analysed by the team at Tax Banter, a prominent tax training organisation. The outline covers the following:
- Personal tax rates including Budget Repair Levy reinstatement
- Removal of franking credit refunds for certain individuals and self managed superfunds.
- Changes to negative gearing
- Changes to the CGT discount
- Capping deductible tax agent fees at $3,000
- Introducing a minimum 30% tax rate for discretionary trusts
- Increase of deductible depreciation allowances
- Reduction of non-concessional superannuation contributions cap
- Decrease of Division 293 tax threshold
- Removal of catch-up concessional contributions
- Removal of tax deductibility of personal superannuation contributions
- Increase of superannuation guarantee rate
- Prohibition on any new Limited Recourse Borrowing Arrangements (LRBAs) by Self Managed Super Funds
- A number of measures aimed at multinational tax avoidance and tax havens
We encourage you to familiarise yourselves with the proposed changes as these will likely form a significant part of the political dialogue in the coming months and may also shape the Government’s upcoming Federal Budget.
Watch this space as more developments occur leading up to the election and please contact your Ruddicks adviser should you have any questions about how the proposed changes may affect you.
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The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 19 March 2019, and was published around that time. Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time.
Any advice provided is not ‘financial product advice’ as defined by the Corporations Act. Ruddicks is not licensed to provide financial product advice and taxation is only one of the matters that you need to consider when making a decision on a financial product. You should consider seeking advice from an Australian Financial Services licensee before making any decisions in relation to a financial product. © Ruddicks 2019