- by Chan & Naylor
- in Asset Protection Economy Finance Property Investment Small Business Tax & Accounting Tax Planning Wealth Creation Wealth Planning
CHAN & NAYLOR: Budget ‘Crocodile Tears’ Must Give Way to Real Reform
Coalition Response Must Reduce Administrative Waste and Government Spending
Sydney, 9th May 2013 – With an economy that is 13 per cent bigger than before the recent GFC having enjoyed revenue growth of 7 per cent, the Government’s crying over ‘powerful global forces’ conspiring against its surplus promise is ‘crocodile tears’ says National Property, Business Tax Accounting and Wealth Advisory Group Chan & Naylor.
“These figures would be the envy of any Australian household or business,” says Ken Raiss.
Mr. Raiss acknowledges the positive actions of increasing the concessional super contributions for people over 60 and removing the draconian excess contributions tax, however he argues that where this Federal Budget has succeeded most is in creating additional unnecessary bureaucracy.
“The introduction of a levy to fund a super committee to look at a committee to do what the government should be doing is ill-considered and wasteful,” says Mr. Raiss. “Instead I would have preferred to see more expenditure (than the $5 million) on improving the nation’s financial literacy.”
According to Mr. Raiss the $112.4 million set aside to support Australians downsizing their homes is also a positive outcome; however the 10 year exemption rules are another example of a good policy hamstrung with administrative compliance.
On superannuation, the Government’s initiative on taxing superfund earnings in retirement over $100,000 will mean that retirees potentially pay more tax on investments in super than outside of super, which Mr. Raiss says fundamentally defeats the purpose of an effective superannuation system.
“The Federal Budget should be setting the nation up for hope and increased confidence rather than disillusionment,” says Mr. Raiss. “In response to this Budget I would like to see a Coalition plan that helps drag Australia out of gloom and doom, which ensures the safety of our AAA credit status and encourages small to medium as well as big business to grow through employing aspirational Australians.”