henry review at a glance

Henry review at a glance
May 2, 2010 - 2:44PM
+ Introduction of a 40 per cent Resource Super Profits tax (RSPT) on profits earned from resources rather than production by July 1, 2012.

+ States will be able to keep existing royalties, but the federal government will provide companies with a refundable credit for current state royalties paid.

+ Resource Exploration Rebate to provide refundable tax offset at the company tax rate from July 1, 2011. Will apply to all resource companies, including geothermal.

+ New ongoing infrastructure fund to be established, with annual federal government contribution starting at $700 million in 2012/13. The fund will provide money to the states for infrastructure projects from 2012/13.

+ Phased in cut of the company tax rate from 30 per cent to 29 per cent in 2013/14 and 28 per cent in 2014/15.

+ Small business will be eligible for the 28 per cent rate from 2012/13.

+ Small business will also be able to immediately write off assets valued at under $5000 and be allowed to write off other assets (except buildings) in a single depreciation pool at a rate of 30 per cent.

+ Increasing the Superannuation Guarantee Rate from 9 per cent to 12 per cent by 2019/20.

+ Around 3.5 million low income earners on less than $37,000 will receive a $500 annual super top up from the government

+ Raising the the super guarantee age limit from 70 to 75.

+ Over 50s with lower super balances will be given more generous contribution

+ A higher concessional contributions cap of $50,000 for those aged 50 or over who have less than $500,000 saved in super.

+ No changes to the GST rate or base

+ Further changes to be announced later, including possible changes to income tax return process.

+ The changes are expected to increase Australian GDP by 0.7 per cent and real wages by 1.1 per cent - equivalent to an extra $450 per year in the pocket of the average full-time worker.