06 Jun 2016
How does the 2016-2017 federal budget affect you?
The 2016-2017 Budget introduced a lifetime limit of $500,000 for non-concessional superannuation contributions effective 7:30pm on 3 May 2016.
Significant changes from 1 July 2016 are:
- The company tax rate will reduce to 27.5% for companies with turnover < $10m. The turnover threshold to access the reduced tax rate will increase annually and the company tax rate will reduce to 25% by 1 July 2026
- The 32.5% tax threshold for individuals will increase from $80,000 to $87,000
Significant changes from 1 July 2017 are:
- The concessional superannuation contributions cap will be reduced to $25,000 from $30,000 or $35,000 (depending on your age)
- Removal of the “work test” which will allow people aged 65-74 to more easily contribute to superannuation
- The ability for all individuals to claim a tax deduction for personal concessional superannuation contributions
- Creation of a $1.6 million dollar superannuation pension cap
Please note the 2016-2017 budget initiatives have not been passed through Parliament at time of printing and are subject to change.
Please feel free to contact Andrew Marshall or Janine Orpwood on 5427 8100 for an initial consultation.