With an economy that is 13% bigger than before the recent GFC and having enjoyed revenue growth of 7%, the federal government’s crying over ‘powerful global forces’ conspiring against its surplus promise is crocodile tears.
These figures would be the envy of any Australian household or business.
There has been positive actions such as increasing the concessional super contributions for people over 60 and removing the draconian excess contributions tax, however 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.
Instead, I would have preferred to see more expenditure (than the $5 million) on improving the nation’s financial literacy.
The $112.4 million set aside to support Australians downsizing their homes is also a positive outcome; however the 10-year exemption rules and other limitations are another example of a good policy hamstrung with administrative compliance or unnecessary complications.
On superannuation, the government’s initiative on taxing super fund earnings in retirement over $100,000 will mean that business retirees potentially pay more tax on investments in super than outside of super, which 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.
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 expand and grow through innovation and employing aspirational Australians.
Ken Raiss is a certified accountant of Chan & Naylor national accounting firm.
Article sourced from: Property Observer