The new budget introduced major changes concerning Australian superannuation system.
- Some of the major proposed changes include:
- Changes to contributions caps, including the introduction of a lifetime non-concessional cap
- Limits to how much can be transferred into pension phase
- Removal of work tests for contributions between age 65 and 74
- Extending eligibility to claim deductions for personal contributions
- Restricting tax-concessions associated with transition-to-retirement pensions.
The Budget also introduced a number of changes to company tax rates and concessions as following:
- Progressively Reducing the company tax rate to 25 per cent over next 10 year
- The small business entity turnover threshold to be increased from $2m to $10m for the purposes of accessing certain existing income tax concessions
- Increase the unincorporated small business tax discount
- Personal income tax threshold from $80,000 to $87,000 from 1 July 2016.
