“The net present value benefit of this change to the tax allowances for depreciation on new plant and equipment should assist investment in additional mining and infrastructure in Australia,” said Mr Niven

“The Warburton-Hendy report on international tax identified Australia’s tax depreciation regime as an area for reform and it is pleasing that this change has been adopted in this...

“The increase in the diminishing value rate for depreciation deductions by one-third will substantially increase the after-tax yields that property trust investors will receive in the future.

“This is because the amount of tax deferred distributions (that is, distributions that investors don’t have to pay tax on until they sell their investment) will increase as a result of all the extra tax depreciation deductions” said Mr...

“I would predict that the majority of funds will come from retail and offshore investors for start-up and growth companies seeking to commercialise good Australian ideas,” said Mr Taylor.

“Details of the rules applying to ESVCLPs are scant. At first blush the announcement reveals these rules are complicated and restrictive and may lead to a low level of excitement by Australian venture capital...

It allows family trust elections to be changed so the trust can be administered to a wider family group.

Family trusts are required to make a choice to ensure certain tax losses and imputation credits are available for the family group.

Currently the choice cannot be changed, which restricts the administration of the trust to a narrower family group.

“While there is no detail regarding when changes will be allowed, I am...

The concessions are projected to save family businesses $90 to $100 million annually.

“Under the previous system, business owners had to hold at least 50 per cent of the business to qualify,” said Mr Pring.  “Now they only need to hold 20 per cent.

“For example, where a retail store is held 40 per cent by mum, 40 per cent by dad and 20 per cent by one of the children, all three family members will now qualify for the concession. ...

Prior to the budget changes, employees of listed stapled entities were unable to access the existing concessional employee share acquisition scheme (ESAS) tax rules for units in trusts that are stapled to company shares.  The ESAS rules provide significant opportunities for employees to own shares in their employers, and placed stapled entities at a distinct disadvantage to ordinary company employers.

With effect from 1 July 2006, the ESAS...

“As boat expenditure is now deductible against boat income, there is more incentive for boat owners to increase the availability of their boats for charter.

“We would expect more activity on Australia’s harbours, leading to increased competition and the driving down of charter rates.

“Previously, boat expenditure was not deductible even where income was derived from the boat.

“Whilst these...

“This year’s changes go much further than the tax rate reductions announced in last year’s Budget, he said.”

In the past, there has been an incentive for small business operators and contractors to incorporate due to the significant differential between the personal and company income tax rates. As this differential has now been narrowed...

“While increasing thresholds reduces the amount of FBT payable, it does not reduce the compliance cost for employers,” Ms Stein said.

“A considerable amount of time is spent by employers in working out whether benefits are exempt from FBT.

“This continues to be a headache and expense for business and was highlighted in the Hendy-Warburton report last month.

“We welcome the Government’s change today to increase the value of such minor benefits from...

“As opposed to making their job easier, their day to day tax administration will be little different”, he said.

“Nevertheless managers will be pleased with the superannuation changes because they will increase savings and therefore increase funds under management,” he said.

“They will now have to...