With the Federal election to be held on Saturday, all but a few campaign and policy announcements are yet to be made. In this article, we have cut through the spin and rhetoric to put a spot light on the key tax-related announcements that both major parties have made. There is a clear difference between the major parties, primarily due to the Liberal Party's commitment to repeal the Mining Tax and Carbon Tax.

No industry is awaiting the election more keenly than the Salary Packaging industry. They will breathe a sigh of relief if the Liberal National Coalition wins Government, ensuring the status quo will be maintained in respect of the FBT rules for motor vehicles. However, if the Australian Labor Party returns to power it will sound the death knell for a large slice of the Salary Packaging industry, as employers will now move away from packaging motor vehicles for their employees in favour of providing car allowances instead.

Support for the Small Business sector has been repetitively spruiked as a key focus for both parties, each promising to cut red-tape. However, these commitments are still pretty light on when it comes to specific policy announcements and most small businesses would justifiably be skeptical about both parties ability to deliver on these promises if their historical record on this issue is any guide.

The (Clive) Palmer United Party has added some colour to this election campaign and they have announced some significant proposed tax decreases that would no doubt reduce the cash flow burden on both small and big businesses. The theory being this cashflow saving is spent thereby stimulating the economy and ultimately creating jobs and positively impacting on tax collections. The Greens Party has also proposed lower tax rates and further depreciation incentives targeted at small businesses.

While the policies and promises will continue to roll in right up to Election Day, we have outlined below what the major parties have advised the electorate so far:

Note: All policies provided are from the respective party websites and statements made by the leaders of each party.

Other Political Parties

Aside from the major parties, the other parties have made various tax policy statements.

The key tax reforms currently announced by the Greens include a small business tax rate reduction of 2% from 1 July 2014 and raising the instant asset write-off from $6,500 to $10,000. The Greens' position on the Emission Trading Scheme is to try and stop the Liberal Party's dismantlement of it.

Taking a more aggressive approach, the Palmer United Party has vowed to scrap Fringe Benefits Tax and reduce the personal income tax rates by 15 per cent from July 2014. The Party believes this will inject additional money into the economy and will stimulate spending and growth.

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