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?
Company tax
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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