ATO getting tough on those who don’t respond
The Australian Taxation Office said it is instigating stronger action for people who have not met their tax...READ MORE
With the federal budget fast approaching, mid-tier firm BDO has responded to the scarcity of clear tax information, offering its own predictions ahead of 3 May.
BDO tax partner Mark Molesworth attempted to sift through what the firm deemed "budget whispers" to identify potential areas of reform.
“The forthcoming election casts a very big shadow over this budget, so I’m expecting we will see a lot of rhetoric but not much in the way of real reform on 3 May,” Mr Molesworth said.
“However, there are a few key areas where we may see some new measures introduced.”
With ongoing talk of changes to super contribution amounts and concessions for superannuation, Mr Molesworth noted that the devil will be in the detail.
"The government will be [a] way of alienating voters so close to the election so I expect any moves to be justified on conditions of 'fairness'."
According to Mr Molesworth, ongoing resistance towards a corporate tax cut from some sections of the voting public may result in a cut during future years, with a rate reduction implemented progressively over time.
Mr Molesworth also voiced BDO's dissatisfaction at talk of a possible reduction in the R&D tax incentive.
"If this proves to be true, it would be unfortunate as the program has done an outstanding job supporting research and development that would likely not have occurred otherwise.
"This will be a difficult message to sell for the 'innovation and science' government, and one BDO doesn't support as innovation is what keeps an enormous number of Australian businesses sustainable."