One is we have been heads down and backsides up working through some great work and a good amount of it too!! It is a positive situation to have and we are always seeking to do the very best for our clients and that takes time and our concentration as you would hope ;)
But it has also been pretty quiet on the tax front form small and medium businesses. There are the large taxes being discussed at present, mining tax and carbon tax, but in the first instance we don’t actually act for (surprise) and large multinational miners and in the second instance, well there just isn’t anything we can do about it.
Perhaps the most relevant item at present is the increase in superannuation guarantee levy that employers will pay. Despite government rhetoric (or spin) the simple fact is the only people who will pay for this will be either the employer or the employee. If the employer absorbs it then plain and simple his profit margin will go down. If the employee 'wears' it then they simply will have wage increases absorbed into their superannuation rather than as an increase in take home pay.
Unions are saying the second option above cannot happen but in reality it is our feel that it will likely be a mix of the two. Employers will again be slugged with another cost which will reduce their profit margin. But similarly employees will also suffer as their pay rises are partially absorbed into super rather than take home pay.
The notion and need for increased super is there and good policy but the implementation and funding is questionable especially as we move and operate in these more uncertain economic times. Like much government policy it simple hasn’t been thought through enough.
