The Government has released the long awaited Henry Tax Review, with good news for small businesses, an increase in superannuation contributions and a 40 per cent slug on mining companies.
The 'resource super profits tax' - or a mining rent tax - will be set at 40 per cent by July 11 2012, which could bring the government up to $12 billion per year, Swan said
Wayne Swan told Sky News that he wants the sector to grow, and that the tax currently being carried out under eight jurisdictions, is inefficient.
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"The Australian people are entitled to a fair return from their assets", Swan said.
Swan announced a new federal-state infrastructure fund, and as expected, provided some good news for small businesses
Meanwhile, employer contribution on superannuation will rise from nine percent to 12 per cent, as expected.
Key recommendations
- 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.
- 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.
In other aspects of the review, there will be no further excises on petrol, alcohol, gambling or a congestion tax.
