“Currently Mid Cap companies including many private companies have to contend with the same complex tax system that applies to the top end of town. A simpler tax system with reduction of red tape that had been promised in recent years was announced as part of the Budget. The measures are to  be released by the end of 2009.”

SME’s would like to see a simpler system removing complex anti-avoidance provisions and doing away with double reporting of information to the ATO. To...

“Pre-Budget, interest free loans from an employer jointly to an employee and an associate were free of FBT if used for income producing purposes. After the Budget release, the FBT exemption will be limited to loans made solely to the employee, said Mr Szekely.”

The proposed change is quite reasonable in that it closes a loophole used to effectively split income with lower tax bracket associates of high...

“It is a curious change as the rate of technological advances means that the useful life of software is generally becoming shorter rather than longer”, said Mr Pring.

“Amid the hype of improving capability and reform of the taxation system, this change seems a regressive step because companies which develop and use software generally will get a lower tax break even if they update their...

“Whilst the proposed 7.5% tax rate for foreign residents investing in Australian property trusts will be good for the commercial and rural property sectors, it is questionable how this enhances Australia as a regional financial hub.

Other measures that should be considered to further enhance Australia as a regional financial hub include:

• tax incentives for fund managers and their employees
• clarity regarding the taxation of sovereign wealth...

Joe Galea, property tax partner at Deloitte, said the Government has followed through on one of its promises made to the property industry last year.

“The cut should encourage investment into Australian property through a listed or wholesale trust by a non-resident investors who will now be taxed at a level that is very competitive against other major economies such as US and UK,” Mr Galea...

“Projects included are in Tasmania and the Northern Territory. Tasmania will benefit from $104 million towards road, bridge and rail projects with 50% of the expenditure earmarked to construct and maintain Tasmania’s 846 kilometres of roads. In the NT, $78m will be expended on similar projects with $42m directed to construction and maintenance of the NT’s 2,652 kilometres of roads.

There is a further $176 million...

“Specifically the Building Australia Fund – which allocates $20billion to be made available for the national roll out of roads, rail, ports and broadband, together with the role to be played by Infrastructure Australia to review proposals – should mean that the delivery of economic infrastructure is accelerated.

“There may be some criticism of the...

Dr David Charles of Deloitte Economics said the Federal Government has demonstrated it is a prudent economic manager while launching major nation building initiatives and packages to assist working families.

“Business will welcome the strong economic discipline. The numbers look impressive: $21.7 billion surplus, well-exceeding the promise of 1.5% of GDP,” Dr Charles said.

“The Budget is built around realistic...

Deloitte Defence Partner, Dennis Goldner, said the Government had stayed true to its election campaign promise of supporting the Australian Defence Force in a climate of global turmoil – Iraq, Afghanistan, East Timor and Solomon Island etc.

“The budget commits to 3% real growth of Defence’s funding base to 2015-16 and has in fact extended this guarantee by a further two years.

“In the meantime, the Government is awaiting the White Paper to...