Australian High Commission
Canada
Address: Suite 710, 50 O'Connor Street, Ottawa, ON K1P 6L2 - Tel: 613-236-0841 - Fax: 613-236-4376

 
AUSTRALIAN HIGH COMMISSION
OTTAWA

MEDIA RELEASE

GOVERNMENT’S TAX REFORM AGENDA ANNOUNCED

4 May 2010

The Australian Government has announced its long term tax plan: “Stronger, Fairer, Simpler – A tax plan for our future”.

The centrepiece of the plan is to apply a 40 per cent Resource Super Profits tax (RSPT) to the profits earned from resources that are owned by all Australians, and use it to:

• Generate more superannuation savings for working families;
• Lower tax for all companies, especially small businesses; and
• Invest in future infrastructure needs, particularly for mining states.

The RSPT is to apply from 1 July 2012. With more than two years between the announcement and commencement of the RSPT, the government is providing multiple opportunities for engagement and consultation with industry.

Other measures announced in the plan include:

• Cutting the company tax rate
• An early start to the company tax rate cut for small businesses
• Small business instant asset write-off
• State infrastructure funding
• Resource exploration rebate
• Superannuation:
    - Increasing the superannuation guarantee rate to 12 per cent
    - Raising the superannuation guarantee age limit from 70 to 75
    - Low income earners government contribution
    - Concessional contributions caps

More announcements will be made in the coming months on other areas of tax policy especially around tax simplification, improving incentives to save and improving the governance and transparency of the tax system.

More information on the tax plan and RSPT consultation process is available on the Stronger, Fairer, Simpler website at www.futuretax.gov.au