The Federal Budget handed down on Tuesday evening of May 8 contained a lot of ‘give’ and also a lot of ‘take’, and depending on your circumstances these may not appear to have been exercised with equanimity.
While families may welcome an increase in Family Tax Benefits, this comes with further limitations in that age 18 will see benefits cease. Similarly, the bonus for school age children comes at the cost of the Education Tax Refund.
For businesses, we see a similar giving with one hand while taking with the other. The welcome ‘loss carry-back’ initiative will assist many smaller enterprises with their cash flows, but the loss of a 1% tax cut also has to be considered. And limiting the loss carry-back to incorporated companies (it’s not available to sole traders, partnerships or trusts) severely limits its benefits — the statistics tell us that only a third of all small businesses are structured as companies.
There are many other Budget initiatives that will have relevance to a wide variety of our clients, depending on your circumstances. As always, please feel free to talk to our office for further details and information.
Should you require more information regarding any topic touched upon in this newsletter, please feel free to contact MBS to discuss the details.
Disclaimer & Copyright: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information. The Copyright is owned exclusively by Taxpayers Australia Inc (ABN 96 075 950 284)