Insurance organisations that have consolidated and settled liabilities prior to 8 May 2007 will be disadvantaged by the changes to the Capital Gains Tax rules announced in the Federal Budget, said Deloitte Tax Partner John Giannakopoulos.

“SMEs in emerging industries or innovative businesses, who want to collaborate globally can now benefit from proposed grants and industry support activities announced in the Federal Budget,” said Peter Jordan, Partner Deloitte Growth Solutions.

The Budget proposed expenditure on infrastructure does not reflect the findings of the Government’s own Intergenerational Report in terms of the pressing need to fund the infrastructure backlog according to Deloitte head of Infrastructure, Roger Black.

The 2007 Federal Budget fails to deliver tax and red tape simplification for small business says Deloitte Growth Solutions Partner, David Pring.

The Budget did very little for investors unless you are fortunate to hold stocks which will reap more business from the budget incentives or expenditures.

The Treasurer has missed an opportunity to give an incentive to those on lower incomes to provide more for their retirement, says John Randall superannuation partner at Deloitte.

“It is pleasing to see that the Government has recognised the need to simplify the rules relating to investments in cash management trusts for corporates and trusts that form part of a tax consolidated group.” said Deloitte Tax partner Adele Watson.

The R&D tax concession turns 21 on 1 July 2007, however the Budget has delivered few presents.

In his twelfth Budget the Treasurer chose once again, to ignore the global trend to decrease company tax rates.

Changes announced in the Budget for year end 2008/09 are likely to encourage small business operators and contractors to favour partnerships, trusts and other alternative structures over the use of companies, according to Deloitte Tax Partner David Pring.

The Budget focus on environmental technologies and vocational training may assist small businesses who provide products and services in these areas said Deloitte Growth Solutions Partner, Peter Jordan.

“It was disappointing that the Treasurer did not take the opportunity to make changes to the treatment of Capital Gains Tax for divorcing couples effective immediately,” said Deloitte Superannuation partner John Randall.

The 2007 Federal Budget has missed the opportunity to abolish tax returns for the majority of individual tax payers says Deloitte Tax Partner David Pring.

Corporate tax collections are projected to increase by almost 11% during 2007/08 according to the Budget forward estimates released last night.

The government missed an important opportunity in its child care announcement last night by failing to link workforce participation to the funding for child care according to Deloitte National Employment Taxes Leader, Elizma Bolt.

Large corporates will welcome the proposed changes in the Budget that will once again allow them to recoup same business test losses according to Deloitte Tax Partner, Neil Ward.

“The announcement that finance leased taxation is to stay the same is a pragmatic solution to an issue that would have been potentially been fraught for business,” said Deloitte Tax Partner Neil Ward.

Commenting on yesterday’s Federal Budget release, Deloitte head of Mining Bhavesh Morar said the Budget failed to address the capacity constraints currently facing the sector and capping its ability to underpin continued Budget surpluses.