The Coalition’s Tax Plans
Some of the tax and superannuation policies the Coalition are taking to the election include:
- Reducing the company tax rate by 1.5% to a new rate of 28.5%;
- Expanding the paid parental leave scheme to provide working women their full salary for six months (Editor: Note that they intend to partly fund this by a 1.5% levy to be imposed on businesses with taxable income exceeding $5 million, so their tax rate will effectively remain at 30%);
- Reject Labor’s $1.8 billion FBT “hit on cars”;
- Defer by two years the increase in compulsory employer-funded superannuation;
- Protect the rights of independent contractors and the self-employed, and will not change current laws relating to the treatment of personal services income; and (of course)
- Abolish the carbon tax and mining tax.
Incidentally, the Australian Greens have proposed reducing the company tax rate for small businesses from 30% to 28% from 1 July 2014.