Once again the FPA was present at the 2016 special Stakeholder’s “Budget Lock-Up”. Here are our insights on some of the expected, and unexpected measures.
- 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.
FPA Budget Wrap
A brief summary of the Budget announcements that are potentially relevant to you and your clients.
For more detailed information on the tax and superannuation reforms the government has developed a series of fact sheets, which are available for download here.
See the superannuation, tax and other relevant policy issues on the FPA website for implementation details of the Federal Budget measures.