Government's Response To Henry Tax Review Backs Importance Of Housing And Small Business

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2nd May 2010, 06:11pm - Views: 512

Government's Response to Henry Tax Review Backs
Importance of Housing and Small Business

Statement by Mr Wilhelm Harnisch, Chief Executive Officer

Master Builders Australia, the peak body for the building and construction industry, today welcomed the Government's continued recognition of the importance of housing and small business.

Mr Wilhelm Harnisch, CEO of Master Builders Australia said, "The Government response has categorically ruled out the taxing of the family home, changes to the current negative gearing provisions and the CGT concessions for rental property. "

"These decisions will ensure that the private sector can continue to positively contribute to solving Australia's housing shortfall."

Master Builders also welcomed the Government's recognition of the importance of small business in the Australian economy.

Mr Harnisch said, "The announcement that small business will be able to immediately write off assets up to $5,000 in the year of purchase will assist in capital renewal and will facilitate future growth and jobs creation from this sector."

"The decision to pool other assets for depreciation purposes is also good news for small business because it will simplify tax compliance and reduce the red tape burden."

He said, "The proposed earlier reduction in the company tax rate to 28 per cent from 2012-13 will also act as a welcome boost for small business. Large to medium companies will also benefit from the cut in company tax rate from 2013-14. The cut in the company tax rate should see an increase in investment and much needed jobs."

"Master Builders has been a strong and long time advocate of increased infrastructure investment and therefore backs the proposed establishment of the Resource State Infrastructure Fund to improve Australia's capacity building infrastructure and capabilities."

"The decision for a phased increase in the Superannuation Guarantee Charge to 12 per cent by 2019- 20 will have implications for business, particularly small business. Decisions on future wage claims will need to take into account the increase in the SGC from 9 per cent to 12 per cent."

Mr Harnisch said, "The Government's decision to consider the agreed elements of the Henry Tax Reform recommendations over a 10 year period and to engage in broad consultation is very sensible and appropriate given the complexity of the proposed reforms and the implications they will have on business and on state and local governments."

Contact: Wilhelm Harnisch, CEO, 0402 039 039
Peter Jones, Chief Economist, 0403 440 838

SOURCE: Master Builders Australia

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