The government released the Henry Taxation Review report, together with its responses at 2.30 pm today.
By now there are limited reports. I have read one from the Sydney Morning Herald. So I turned to the Treasury website and found some headlines with very brief introduction on each of them. See http://www.futuretax.gov.au/pages/default.aspx
The main headlines are:
Cutting company tax rate from 30 to 28% by 2014-15, but small businesses will benefit earlier.
Tax relief and less red tapes for small businesses, mainly reflected by a tax deduction for assets up to $5000 a year, then 30% depreciation for other assets into a pool.
Fairer superannuation, increase the employer compulsory super contribution from 9% to 12%, phased in a decade, a $500 government payment for low income workers.
A fair share of our natural resources: a resources super profit tax of 40%, after investment deduction. State royalties will stay and will be credited to companies.
An infrastructure fund contributed by government from resources tax, used for resources rich States.
State may increase their royalties to benefit first and knowing they will be credited to mining companies.
No immediate effects of reforms with the earliest effects likely to be seen in 2012-13. So the government is only talking at this stage.
Small businesses are seemingly the main beneficiaries, but likely to be offset by increases in superannuation contributions for workers.
Super changes are significant.
Does not appear to have personal income tax relief.