"Ensuring that business maintains pace with the government's business tax reform initiatives will be of paramount importance, particularly given the increased funding to be provided to the Australian Taxation Office to undertake field audits," Graeme Bailey, KPMG national managing partner, tax and legal services, said.
"Business will be comforted by the release of a timetable outlining the introduction of the remaining tax reform strategies," he said.
Most will take effect between July 1, 2002 and July 1, 2004.
"Of critical importance will be the implementation of the tax consolidation regime that will require close attention and monitoring by company directors to ensure that key decisions are made prior to July 1, 2002," Bailey said.
The biggest surprise in the budget was a forecast $1.2 billion deficit, breaking the government's four-year run of budget surpluses, KPMG said. At the time of the last election in October a small surplus of $500 million was still expected.
Click here to view KPMG's full Budget Analysis 2002 (155k, Acrobat Reader required).
