The AMWU has welcomed the changes to Australia’s tax system announced by the Rudd Government in response to the Henry Tax Review.
AMWU National Secretary, Dave Oliver, said that the superannuation reforms were a key issue for working people, while business and the economy would also benefit from the changes.
“Raising superannuation was neglected during the Howard years and is long overdue. It’s a great change for workers.
“The Resources Super Profits Tax is also important to make sure that our community benefits from the high price of our natural resources, instead of mining companies getting the windfall.
“The increased investment in infrastructure is important for building our economy’s capacity, but it is also important to creating jobs, and therefore it is crucial that the government's procurement policies ensure future projects use as much locally manufactured content as possible,” he said.
Summary of the changes:
The federal government has announced new changes to Australia’s tax system. The biggest change is the introduction of the Resource Super Profits Tax. This will mean the Australian community will benefit more from the mining boom, with the money raised used to fund superannuation increases for workers and reductions in company taxes.
The changes to superanuation will benefit all workers as contributions rise from 9 per cent to 12 per cent by the 2019-20 financial year - an extra $108 000 to the average retirement income of workers now aged 30. Low income workers will be eligible for an additional $500 annual contribution to their super from the government.
Business will also get some of the benefits, with company tax rates falling from 30 per cent to 28 per cent by 2014-15, and 2012-13 for small business. Small business will also be able to write-off assets worth less than $5000.
Prime Minister Kevin Rudd and Treasurer Wayne Swan said that the government was still working on reforms which would be announced over the next few months. These reforms would include making personal tax returns simpler, improving incentives to save and improving the governance and transparency of the tax system.