Last night the Treasurer handed down the 2016 Federal Budget.
Please read below some of the changes that may affect you:
- Superannuation tax concessions have been heavily tightened, with existing limits reduced and new caps introduced
- The tax exemption for earnings on assets supporting ‘transition to retirement’ income streams will be removed, and the anti-detriment payment will be abolished.
- There will be new measures to help low-income earners and those with low superannuation balances
- Individuals will be able to claim a deduction for personal contributions to superannuation, regardless of their employment status
- The personal tax threshold will be raised to $87,000
- There are significant changes for small and medium businesses, with the thresholds to access certain concessions raised substantially. The Government also announced that all businesses will eventually face a reduced company tax rate, with the rate gliding down to 25% over ten years.