“Big changes to the tax system are on the way thanks to the Henry Review. What do they mean for our personal finances?”

Nothing quite feeds an “us versus them” mentality as voraciously as cutting down tall poppies. It’s as Australian as tax evasion, bagging politicians and drinking cold beer in Bali.

And the Henry Review makes all these national past-times related. So let’s tie them all together.

Rudd’s tall poppies are very successful small business owners (who now run medium-sized businesses), the resources industry, and those with more than $500,000 in super.

Rudd claims he wants Australians to be successful. But the Henry changes make it appear he wants you to aim no higher than mediocrity.

Most Xers working full-time won’t be earning less than $37,000 a year, so will not benefit from the $500 superannuation tax rebate. However, plenty of stay-at-home parents and part-timers will benefit.

The phased increase in super from 9 to 12 per cent is a significant long-term benefit for employees, but will be an increased cost to all but micro-businesses. And while Xers don’t have $500,000 in super yet, this new cap is a pseudo reintroduction of the “reasonable benefits limit” concept.

Don’t underestimate how many Xers are running small and medium-sized businesses. Medium-sized business owners will have to wait to benefit from the company tax changes.

But weren’t we promised “root and branch tax reform”? Kevin, it’s Autumn. This is just a few leaves changing colour.

And drinking cold beer in Bali? Well, that’s what I’m doing as I write this column …

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.