The budget has been prepared in uncertain times. Matters which could affect the budget outcomes include:
• The turmoil in Greece, particularly if this spreads to other European countries.
• The expectation that commodity exports from Australia to China and other Asian countries will continue to rise.
• The Government has made a big punt on the continuation of the resources boom.
• The budget expectation is that interest rates will continue to rise.
• The budget is assuming a 7.5% increase in dwellings.
• There are considerable concerns that the resources super profit tax, which is to be determined on a project by project basis, will affect SME operators who may be caught up in resource companies scaling back exploration, repairs and maintenance, capital expenditure and research and development.
The Federal Treasurer, Mr Wayne Swan, presented the Rudd Government’s budget on 11th May 2010. The Treasurer indicated the budget was a “no frills budget” and it was. This series of posts incorporates a summary of matters within the Federal Budget, the Henry Review and other initiatives that have commenced in 2010 that may affect SME operators. Other than those items which have already commenced in 2010, none of the items contained within the budget, nor the Henry Committee Review, will become law until the budget and the various Henry Committee Review recommendations have been passed by the House of Representatives and the Senate, and signed by the Executive Council.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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