find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Tax budget slow but positive for funding

Tax budget slow but positive for funding

The Government's announcement that it will phase down Interest Withholding Tax on financial institutions has been welcomed by tax experts.In line with one of the core recommendations of the…

The Government's announcement that it will phase down Interest Withholding Tax on financial institutions has been welcomed by tax experts.

In line with one of the core recommendations of the Johnson Report, the Government will effectively reduce the cost of funding for banks operating in Australia and also for branches and subsidiaries of foreign banks, though at differing rates.

Duncan Baxter, head of taxation at Blake Dawson, told Lawyers Weekly that although the process will be a little slower than they would have liked, it is a positive development nonetheless.

"We would have been looking for this [to be implemented] a bit faster, rather than a phased reduction, but you can understand a degree of caution on the part of the government when there is still a deficit in the budget. It is a step in the right direction," he said.

"The idea that by 2014, the 10 per cent withholding tax will be down to zero in the case of a branch, and 5 per cent in the case of a subsidiary, is really good," he said.

"That ultimately should reduce the cost of borrowing for Australian businesses."

Overall, said Baxter, the new budget in relation to tax has a focus on individuals as opposed to businesses, with a definite move towards phasing out the engagement of individuals in the taxation system by simplifying tax returns, and providing individual tax breaks to encourage investment.

Effectively, Baxter does not expect huge changes.

"In relation to business, a lot of the changes are quite marginal ... and they will take quite a while to work through the system," he said.

"We would not anticipate an enormous amount of difference to our work. The focus of the budget is focused on bringing the economy back and encouraging investment, and of course that is where the Government needs to be very cautious not to discourage people from putting money into Australia."

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Tax budget slow but positive for funding
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...