The Institute loudly voiced our concerns on Budget night with three separate media releases and extensive coverage on television and radio. Our main themes included the Government failing its own benchmarks by not reducing the overall burden faced by the majority of small businesses, with new reforms being funded by previously announced reforms which are now being cancelled, including the reduction in the company tax rate. Opportunities for significant tax reform have been overlooked, including various measures recommended by the Institute in its pre-Budget submission, such as a concessionary tax rate for small business, significant rather than piecemeal reform of the fringe benefits tax regime, and a meaningful tax reform agenda following the Henry Tax Review and the Tax Forum.
Another disappointing announcement by the Federal Government is its continued attack on the superannuation system through its short-sighted Budget measures. These include halving the tax concession for those earning over $300,000 and delaying for two years the Government’s previous announcement of an increased concessional cap for certain older Australians.
The cumulative impact of the last five Budgets has been to diminish the incentive for Australians to save for their retirement, pushing more Australians onto the Government pension in future years. Recent research has indicated that potentially $12.4 billion in personal contributions has been removed from superannuation in the 2010/11 year alone.
In our pre-Budget submission the Institute called on the Government to avoid short-term measures and adopt a demographic-centred superannuation policy framework, particularly aimed at older Australians with low superannuation nest eggs.
The Institute also expressed concerns over Budget measures which impose fees on accountants for payment of government regulation. This includes fees payable to ASIC for registration of SMSF auditors, fees to sit exams for registration and ongoing fees. There are also huge increases in ASIC fees relating to financial service licensing.
During Budget week Andrew Conway voiced the opinion of the Institute – and most importantly members – through various channels including radio, television and print media. The Institute was quoted in a number of media mentions, including a radio interview with Ross Greenwood on 2GB, the Herald Sun, Ninemsn and a number of small business publications.
At this year’s Budget we trialled a new member communication medium of online videos. Our YouTube channel features a number of videos shot onsite during Budget week. Members who visit our website will be able to gain access to a number of radio interviews, behind-the-scenes footage of Budget activities and the Institute’s views on the Budget.
For more detailed information on the impact of the Federal Budget see the article on page 36. You would also have received the Budget edition of Technical Advantage which was emailed on Budget night to all members; and a client edition of Technical Advantage has been emailed to all members in practice.
