Tax: At a glance

The budget detailed a wide range of tax changes (although many have been previously announced), plus it reiterated the Government’s intention to deliver its 2007 election campaign tax cuts.

Revenue measures announced

In summary, the many revenue measures announced in the 2008 Federal Budget include:

• Tax system review: further details announced of the proposed review of the tax system;
• TOFA: stages 3 and 4 have been deferred until 1 July 2009, plus other amendments announced;
• Family trusts: Government confirms reversal of family trust changes;
• Company losses: Government to proceed with changes to company loss recoupment rules;
• Simplified imputation: Government to complete the simplified imputation system;
• Employee share schemes: changes re elections and removal of double taxation;
• Consolidation: Government confirms it will proceed with modifications to the consolidation regime, including CGT scrip-for-scrip roll-over for corporate restructures;
• CGT: extension of CGT small business concessions re related entities and partnerships;
• Capital protected borrowings: change to benchmark interest rate;
• GST: several measures eg re charities, international communications, sale of real property;
• FBT: tightening of work-related exemption, amendments re jointly held assets, tightening of meal exemption;
• Legislation by press release: the Government has proposed what it believes is a way of more effectively dealing with previously announced tax changes;
• Valuations and private rulings: Government releases draft regs;
• Depreciation on in-house computer software: increasing the write-off period to 4 years;
• Medicare levy: thresholds for levy and surcharge increased;
• First Home Saver accounts: substantial changes announced

 For more details, see the Thomson report