The former is still expected to be achieved by 2012-13, while the latter reflects the Australian Government’s view that the “dividend” from the minerals boom should be spread to lower and middle income families.
This will be through a combination of social assistance and tax cuts, partly funded from increasing effective tax rates on higher earners.
The other main casualty of the 2012 Budget is the Australian company tax rate cut, which was proposed to apply from 2013-14 for all businesses.
This taxmail summarises the key tax and spending initiatives in the 2012 Australian Budget, and discusses what this means for New Zealand business and, importantly, our own Budget in a few weeks time.
If you have any questions on the above, please speak to your usual KPMG advisor, or contact John Cantin.