With the 2015 Financial year well under way, Fortis Accounting Partners looks at some of the changes and updates that come with the Federal budget and what the ATO might have in store for us this year.
Medicare Tax Reform
Health Minister Sussan Ley has bowed to pressure to scrap plans to cut a Medicare rebate for short GP visits, and promised to consult on health reform.
The back down means Australians will not pay more from 19th January 2015 if they have a short consultation with their doctor. It comes 24 hours after Prime Minister Tony Abbott defended the proposal to cut $20.10 from the rebate paid to GPs for consultations of less than 10 minutes.
Medicare had to be sustainable, Mr Abbott said, challenging critics to come up with an alternative to the important economic reform. Ms Ley says there’s no new plan yet, but wanted to end confusion surrounding the issue.
Workplace Relations
Currently, rather than focus on the actual minimum wage, the topic of choice by employer groups this year has been against penalty rates, whereby workers get paid higher wages for working on weekends and public holidays.
This focus is not that unusual – it pretty much is an ongoing campaign. The government is nationally leaving the fight to the employer groups, but it is pretty clear the minister for employment, Senator Eric Abetz, is in agreement with them.
GST
The calls for a change to the GST have also been around for a long time. Given that the government is soon to release its tax reform white paper, which will include discussion of the GST, it is no surprise that the issue has cropped up over summer.
Government backbencher Dan Tehan has led the way, calling for GST to be broadened to be applied to food and education – a move supported by the minister for trade, Andrew Robb. The mid-year fiscal and economic outlook suggests that the GST exemption on food, education and health lost $14.15bn revenue in 2014-2015.
If you have any queries regarding tax and how it might affect your financial situation please, do not hesitate to contact us at Fortis Accounting Partners.
