Mining companies are the hardest hit in the wake of the Henry tax review, but what are the other parts of the 138-recommendation plan is the government acting on?
- Compulsory superannuation will go from nine per cent to 12 per cent by 2019
- Super will be guaranteed for workers up to 75 years old, up from 70 at present. Super will be compulsory for over 70 year olds
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- Workers over 50 with low super savings will be able to make payments at a concessional rate
- The government will also provide a super contribution of $500 a year to low-income workers, and will retain their super co-contribution scheme
- Company tax will be reduced by two per cent to 28 per cent by 2015, but small businesses will benefit from the tax cut by 2012
- Small businesses will be able to write off assets under $5,000, compared with the current $1,000 write off
- The mining and resources sector will be slugged with a 40 per cent federal 'Resources Super Profit Tax' - but mining companies will be able to claim a rebate on any state mining royalties they pay
- The federal government will contribute $700 million in 2012/13 to a state infrastructure plan. The government has pledged $5.6 billion to this fund over the next decade
- Adding to the Goods and Services Tax rate has been ruled out, as has broadening the GST base
Key areas that the government has not targeted include petrol, alcohol and gambling, with critics suggesting that a federal election is too close for such contentious issues to be dealt with.
