2009 Federal Budget – Tax Changes And Implications

Damian O'Connor, Special Counsel

Deemed Dividends - Executive And Employee Equity Plans - GST And Property – Overseas Income - Project Wickenby - Overdue Tax

While a number of key budget changes were public knowledge prior to budget night (such as deductible superannuation contribution limits, the 50% small business tax break and private health insurance rebate restrictions) there are other important tax changes hidden away in the detail of this year's federal budget.

Deemed Dividends

The tax law already contains extensive rules that attempt to tax any benefits that shareholders and associates may receive from private companies, including loans and forgiven debts.

From 1 July 2009, arrangements where private companies allow the use of company assets (for example real estate, cars, boats) for less than market value will fall within the tax net.