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Budget Priorities

More Benefits from Tax Reform

After $12 billion of personal tax cuts that took effect on 1 July 2000, this Budget provides for further tax cuts. From 1 July 2001, the company tax rate will be further reduced from 34 per cent to 30 per cent, and State Financial Institution Duty (FID) and stamp duty on most share transactions will be abolished. In addition, full input tax credits for business on the acquisition of motor vehicles will be brought forward from 1 July 2002 to 23 May 2001.

From 1 July this year:

the company tax rate will drop further (from 34 to 30 per cent), to amongst the lowest rates in the region saving companies around $2 billion a year

around $5 billion in tax cuts next year and simpler administration

State Financial Institutions Duty (FID) will be abolished, saving around $1.2 billion a year for individuals and companies

stamp duty on most share transactions will be abolished, saving around $0.7 billion a year for investors and encouraging the further development of Australia's capital markets

excess imputation credits (for dividends paid from 1 July 2000) will be refunded to resident individuals, complying superannuation funds, endorsed charities and gift deductible organisations. Shareholders will benefit by around $500 million each year

the `Simplified Tax System' will cut small business tax payments by more than $1 billion over three years and provide eligible small businesses with cash-based tax accounts, simpler depreciation and trading stock rules

the `Uniform Capital Allowances' system will simplify amortisation regimes and reduce compliance costs, replacing over 27 separate write-off regimes with a uniform approach.

In this Budget, the Government is announcing the bring forward of full input tax credits for business on the acquisition of motor vehicles from 1 July 2002 to 23 May 2001. This initiative will slash business costs by over $600 million and boost motor vehicle sales.

earlier access to input tax credits for motor vehicles

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From 1 July this year:
the company tax rate will drop further (from 34 to 30 per cent), to amongst the lowest rates in the region saving companies around $2 billion a year	around $5 billion in tax cuts next year and simpler administration
State Financial Institutions Duty (FID) will be abolished, saving around $1.2 billion a year for individuals and companies
stamp duty on most share transactions will be abolished, saving around $0.7 billion a year for investors and encouraging the further development of Australia's capital markets
excess imputation credits (for dividends paid from 1 July 2000) will be refunded to resident individuals, complying superannuation funds, endorsed charities and gift deductible organisations. Shareholders will benefit by around $500 million each year
the `Simplified Tax System' will cut small business tax payments by more than $1 billion over three years and provide eligible small businesses with cash-based tax accounts, simpler depreciation and trading stock rules
the `Uniform Capital Allowances' system will simplify amortisation regimes and reduce compliance costs, replacing over 27 separate write-off regimes with a uniform approach.
In this Budget, the Government is announcing the bring forward of full input tax credits for business on the acquisition of motor vehicles from 1 July 2002 to 23 May 2001. This initiative will slash business costs by over $600 million and boost motor vehicle sales.	earlier access to input tax credits for motor vehicles