New Budget Highlights

 

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.

If you wish to find out more details about the new budget changes and how they apply to your circumstances don’t hesitate to give us a call or visit our Bondi Junction office.