Standard deduction for work expenses
As far back as the Henry tax review and the 2010 Budget, the Government has tanterlised taxpayers with the prospect of a standard tax deduction for work-related expenses, say $500.
A standard deduction has long been recognised as an important element towards a system of pre-filled tax returns to make life easier at tax time. This proposal has also received recent attention as part of a Parliamentary inquiry into tax deductibility.
While the committee is yet to report back to Government, perhaps 2017 will be the year when we see a firm announcement in this area?
Further changes to the company tax rate are unlikely this year given the recent passage of legislation cutting the corporate tax rate for companies with a turnover less than $50m, starting with 27.5 per cent in 2016-17 for businesses with turnover of less than $10m.
However, expect the Government to re-commit to its 10-year Enterprise Tax Plan to eventually reduce the company tax rate to 25% for all companies.
On this front, the Government has also been reinvigorated by the Trump Administration’s plan to lower the US corporate tax rate to 15 per cent.
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