Even in the best of times budgets can be a tight rope balancing act, especially if the safety net holding the surplus is fast getting wobbly. The 2012 Budget has evoked sentiments ranging from pathetic to downright infuriating. Some of the measures announced have got many hot and bothered.
Coming menacingly close with the introduction of the carbon tax, the budget appears to have rattled both the “Wall street” and the “Main street” in Australia.
There is talk of a “Google” tax on big companies and a “Buffet” tax on rich individuals, raising the fear of exodus of companies and workers to friendlier countries. The effect of the withdrawal of the tax free “living away from home” allowance (LAFHA) on “fly-in-fly-out” (FIFO) workers and the failure to reduce corporate tax, could prove damaging to the economy. Fears of exodus after tax changes
The consequence of the doubling of the withholding tax on MIT distributions remains to be seen. Swan faces lobby overtax increases
On Thursday, 31 May, 2012, CCH has published the following results of a survey conducted in collaboration with the Tax Institute:
CCH customers and members of The Tax Institute were asked their thoughts on the Australian Federal Budget handed down by the Gillard Government on 8 May 2012. The results are in with some surprising answers in the mix.
Those surveyed came from a broad spectrum of professional backgrounds including Tax & Accounting, Business Corporate, Legal, Education and Government.
Overall, the Budget received “the thumbs down” from survey participants with nearly three quarters of the tax-specialist professionals ‘not happy’ with the 2012 Australian Federal Budget.
The survey asked: “What are the top 3 Federal Budget announcements that you see will affect you or your business the most?” There was a mix of answers but a strong theme emerged indicating that the biggest impact would result from the superannuation changes and the failure to implement the company tax rate reduction.
Interestingly, the next biggest impact was the carbon tax, although this was not part of the Budget Night announcements.
The following were the stand-out issues that were missing from the agenda on the night which our survey participants believe should have been covered:
· the plight of small business / lack of business incentives
· failure to stimulate the economy / productivity / jobs growth
· the need to cut corporate tax; and
· general tax reform.
For full details of the survey, click here.
To view the CCH Budget Report click here.