As the Federal Election draws closer, Labor is continuing to release further information regarding its tax policies.
The 2019 Federal Budget has been released with many taxpayer friendly proposals as the Liberal Government seeks re-election in the upcoming Federal Election. Given this election, most of these measures will not be passed and become law unless the Liberal Government is re-elected however with Labor’s tax policies being publicised it is important to consider the Liberals’ proposals as outlined in this Budget.
The ATO has recently announced the results of its recent investigation into 300 random rental property claims. Alarmingly although tax agents were responsible for the preparation of 85% of these returns, errors were found in 9 out of 10 tax returns which resulted in the taxpayer owing further taxes to the ATO.
With legislation now passed to impose the electronic reporting requirements of Single Touch Payroll (STP), software providers are scrambling to come up with cost effective solutions for those small businesses impacted by the change. Although STP has applied to employers with more than 20 employees from 1 July 2018, the legislation passed sets a date of 1 July 2019 as the starting reporting date for those businesses with less than 20 employees.
Labor’s policies on super are controversial as they make further restrictions on the ability of taxpayers to contribute to super and build up their retirement balances. They take things a step further than the changes made by the Liberal Government in many areas.
Another major focus of the Labor tax policy is to improve housing affordability. Two policy measures it claims will assist in this objective is to remove negative gearing on investments and alter the CGT discount.