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Government's Economic Statement: Tax and super changes
The Australian Government has released its Economic Statement (August 2013) ahead of the upcoming Federal election. Key announcements include:
confirmation of bringing forward of the emissions trading scheme by one year to 1 July 2014 and removing the statutory formula method for both salary-sacrificed and employer-provided car fringe benefits for new contracts entered into after the announcement, with effect from 1 April 2014
deferral of introduction of the $2000 cap on work-related education expense deductions to 1 July 2015, to allow for further consultation
establishment of a Financial Stability Fund to help meet any future cost of the Financial Claims Scheme (FCS) and the cost of other resolution activities that protect depositors. According to the government, the fund will build gradually to a target size of 0.5 per cent of total deposits protected by the FCS
the threshold below which small inactive super accounts (including inactive accounts of uncontactable members) are required to be transferred to the ATO will be increased from $2000 to $4000 from 31 December 2015, and to $6000 from 31 December 2016
confirmation of the staged introduction of 12.5 per cent increases in tobacco excise over four years
provision of an additional $99 million over four years to the ATO to address the levels of unpaid tax and super in the community
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