2016

June 2016

Posted by Anton Murray Consulting on . Posted in 2016

“Time For Real Change”

With less than a month to go until Australia decides whether Malcolm Turnbull or Bill Shorten will win the top job, just where do our major political parties stand in terms of their promises to the Australian public?

Tax

Liberal: The Liberals promise a boost in the GDP, profits, jobs and wages by cutting the corporate tax rate from 30% to 25% by 2026-27, and the tax rate for small businesses from 28.5% to 25% by 2026-27. The threshold for the 37% tax rate for workers earning more than $80,000 will move up to $87,000.

Labor: The Labor Party supports the Liberal’s tax cut for small business, proposing a tax rate of 27.5%. However, this is not the case for big multinational companies. Labor plans to undertake measures to stop multinational tax evasion and curb super tax loopholes for the wealthy,

Superannuation

Liberal: The Liberal Party intends to place a cap of $1.6 million the amount of super that can be transferred into pension phase. The Coalition also proposes a low income super tax offset for contributions, up to $500, for people earning less than $37,000. For high income earners, a $500,000 lifetime limit is to be placed on post-tax contributions to replace a much more generous annual limit of $180,000.

Labor: Future earnings on assets supporting income streams will be tax-free up to $75,000 a year for each individual. Earnings above the $75,000 threshold will attract the same concessional rate of 15% that applies to earnings in the accumulation phase. The reforms will affect roughly 60,000 super account holders with balances in excess of $1.5 million.

Other

Liberal: The Coalition opposes Labor’s plan to reintroduce a Carbon Tax, which is expected to injure family budgets. An average household can save around $550 every year with the removal of said tax. The Coalition is also planning to review the current competition laws to help small to medium companies compete with the big players. This is seen to enhance competition, support innovation, benefit consumers and boost jobs and growth.

Labor: Labor supports workers’ penalty rates and will oppose the Liberal’s attempts to cut them at a time when Australia is facing the slowest wages growth in 25 years. As for housing affordability, Labor will reduce the capital gains discount for assets held longer than 12 months from the current 50 per cent to 25 per cent.

One thing is clear, both parties in Australia’s 2 party preferred system are committed to the growth of the Australian economy. In the end, the party that will prevail is the one that will offer voters the opportunity to feel secure.

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