Once again the FPA was present at this year’s 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.