Talking Cents

December
November
October
September
August
July
June
May
April
March
February
January

Small business news - Repeal of the MRRT

For the small business owners out there who have not yet caught up on the news the Federal Government successfully managed to negotiate its way through the maze that is the current Australian senate and finally pass the legislation to repeal the Mineral Resources Rent Tax. Whilst this is great news for the mining sector in Australia, it’s the impact on the small business sector that may well have the larger impact on our nation’s economy and its ability to generate new employment and economic growth for future generations. Small business owners in Australia should take careful note of the other amendments that have also changed as a result of the MRRT repeal.

The school kids bonus will remain in place until December 2016. It will now be means tested so that only families with total income under $100,000.00 qualify.
The proposed increase to compulsory superannuation for employees will now be deferred. It was legislated that the current rate of 9.5% would increase to 12% in 2018. The rate of 9.5% has now been set in stone until 1 July 2021 providing greater certainty for employers, whilst ignoring the future impact on retiring generations and their ability to live off their super in retirement. The rate will start to increase from 9.5% in 2021 to 12.00% in 2025. The rate of increase is 0.5% per year from 2021 to 2025.
The low-income super rebate will now extend its shelf life and remain in place until 30 June 2017 as a $500 rebate on compulsory super for income earners below $37,000.00.
The income support bonus for people on some Government benefits will also be extended and will now be phased out from 1 January 2017.

So now with the mining tax gone as promised and greater certainty for employers, both large and small, over superannuation contribution changes it is to be hoped that the economy will get a boost, both from the legislated changes and the flow on into business confidence that comes from having certainty in Government policy for the short-term at least.