Lets not forget those indirect taxes, or should I say levy’s. There is always a lot of talk around budget time and what will change with income tax rates, government spending and the like. Somehow we forget the various indirect taxes that always seem to bug us when we get hit with a change.
There were 4 key changes at the SRO which will affect both business and consumers
The payroll tax rate will be reduced from 4.9% to 4.85% from 1 July 2014.
- This is barely good news for business. The change will mean a business with reportable payroll expenditure of $1m will stand to save a measly $225. There was no change to the $550,000 threshold
The motor vehicle duty rate will be increased by $0.40 per $200 of the dutiable value of a vehicle, from 1 July 2014.
- This will result in the cost of a new $40k passenger vehicle increasing by $80.
Life insurance duty will be abolished from 1 July 2014.
- Depending on the level of life insurance, you will stand to save a couple of hundred dollars
A new Metropolitan Planning Levy will be introduced from 1 July 2015.
- The Government has targeted property developers with a new levy on planning permit application fees for projects worth more than $1 million.
- The levy will be imposed at a rate of $1.30 for each $1,000 of the development cost. Projects below $1 million in value will not be subject to the levy.
For example; in respect of a planning permit for a $5 million development in Metropolitan Melbourne, the levy will add an additional $6,500 to the cost of the development.
Although the government has provided a few small tax savings, it is clear they are still wanting to grab cash from developments on top of all the other levy’s/taxes they currently pay.
Ensure you give your adviser at HTA Advisory a call to discuss how any of the change may affect you or your business.