On 13 May 2014, the Treasurer, the Hon Joe Hockey MP delivered the Coalition’s first Budget. The Deloitte view and analysis on the Budget announcements and the implications for business will be published in the 2014-15 Deloitte Budget Brief on 14 May 2014.
Welcome to the politics of Budget repair. Australia has just seen the toughest Federal Budget since 1997, with spending cut and taxes raised to generate policy savings on a scale not seen for the better part of two decades. As expected, from a business taxation perspective, the Treasurer has continued to reposition existing tax policies with no major surprises or changes. The more important focus for business will be the White Paper on the Reform of Australia's Tax System, which will provide a longer term considered approach to tax reform and which is due prior to the next election.
The 2014-15 Deloitte Budget webinar will be held at 9am on 14 May 2014. Register for the Deloitte Budget webinar.
If you have any questions regarding the items below or any other indirect tax matter, please contact our team listed in the top right hand column.
Fuel excise indexation will be reintroduced from 1 August 2014. This will involve a biannual CPI indexation. Revenue raised through this measure will be linked to funding for new road infrastructure.
The burden of fuel excise indexation will fall largely on consumers and to a lesser extent on the business sector. This is as a consequence of the fuel tax credit scheme, which is available to businesses acquiring taxable fuel for eligible uses and which will remain essentially unchanged.
Some further changes were announced in the Budget to schemes relating to fuel products. These may have more implications for business and include:
No changes were announced in the Budget for other indirect taxes, including Goods and Services Tax, the Wine Equalisation Tax and other excises (e.g. tobacco).