Does the budget affect you?
With a double dissolution election on the way, and one of the longest election leads up in Australian history, it’s no surprise that this budget means some massive changes to tax and government concessions, and in particular, superannuation.
Some budget highlights include:
- Company tax rate reduced to 25% over 10 years
- Increase in tax discount for unincorporated small business to 16% over 10 years
- Small business entity threshold increase to $10m from 1 July 2016
- $1k GST exemption on imported goods abolished from 1 July 2017
- $500,000 lifetime non-concessional contributions cap from Budget night
- Reduction in concessional contribution cap from 1 July 2017
- Tax exemption on earnings supporting transition to retirement income streams (TRIS) removed from 1 July 2017
- 30% tax on super contributions of high income earners extended
- Tax free super balances capped at $1.6m from 1 July 2017
- 5% personal income tax threshold increase to $87,000 from 1 July 2016
- Subsidies to create employment path for unemployment youth
To discuss how these changes, and more, may affect you, contact one of our tax experts at BLG Business Advisers on (02) 42292211.