Federal Budget 2013
Whilst tonight’s budget has not presented many shocks, there is be some compounding pressure on the tax burden falling to executives and business leaders further exacerbating the war for talent in Asia, according to leading advisory firm Grant Thornton.
Some of the budget changes include the 30% super tax levied on contributions for earners over $300,000 and an increased personal income tax rate of 47% for high earners.
Peter Berg International Employer Services Lead Partner at Grant Thornton Australia says it is concerning that these changes - in unison with other recent changes including the abolition of the living away from home concessions for foreign executives, the changes to the taxation of equity awards and golden handshakes - will make Australia less competitive in Asia.
"We are seeing a significant number of our international clients setting up their Asian headquarters in alternative jurisdictions such as Singapore. Australia is increasing the tax burden on its executives at a time when it is competing with lower tax jurisdictions that have the infrastructure and the talent".
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Grant Thornton Australia provides audit, tax and advisory services to dynamic, growing organisations and is a single national firm, with over 150 Partners, more than 1,200 people across Australia and national turnover of AUD $232 million. Grant Thornton International is the fastest growing international accounting network in the world, with a global turnover of US$3.7billion and more than 30,000 people, and was recently named 2013 Network of the Year by the International Accounting Bulletin.