Save
Morrison v Shorten: The big-ticket policies for investors
The polling booths are almost open, and the roadmaps of both major parties are clear. Here are the headline policies impacting investors for this 2019 federal election.
Morrison v Shorten: The big-ticket policies for investors
The polling booths are almost open, and the roadmaps of both major parties are clear. Here are the headline policies impacting investors for this 2019 federal election.
Liberal’s plans
The incumbents will look to grow the economy through the creation of 1.25 million jobs over the next five years, including 250,000 new jobs for young Australians.
They plan on delivering the largest personal income tax in a decade, with-single income families earning up to $126,000 being $1,080 dollars better off.
The Coalition plans to lower business tax and improve access to finance to try and grow small and medium businesses. They have cut the rate of tax to 27.5 per cent for small and medium businesses before moving the rate down to 25 per cent for 2021-22.
Mr Morrison’s government will invest $100 billion into new infrastructure programs to connect domestic and global markets.
They are also looking to support the agriculture sector with $6.3 billion in drought relief.
Labor’s plans
Two terms that have dominated this election cycle are “negative gearing” and “franking credits,” with the Labor Party planning major changes to reform both tax structures.
Labor plans to reform the franking credits regime, which has been a source of confusion and contention among investors.
Essentially, for investors with shares in an Australian company, the proposal will revoke the right to a tax refund for investors who have not paid that tax.
Currently, under a scheme introduced by former prime minister John Howard, investors receive a refund on taxes paid, even if they have not paid it themselves.
You can read more about this here.
The Shorten government also plans to change negative gearing so that it is only accessible on new builds after 1 January 2020. If a property is negatively geared, investors can offset their property investment’s losses against their taxable income. Further, the Labor Party will halve the capital gains tax discount after the same date. It’s important to note that these two policies apply to all investments, not just property.
Labor is planning to raise wages by reintroducing penalty rates for 700,000 workers and increasing the minimum wage. Further, the party plans to guarantee casual workers have access to part-time or full-time contracts after a set period.
About the author
About the author
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
