2016 Federal Budget…should we be worried?

With almost every conceivable tax saving on the table in the last 6 weeks, what’s still left standing for the government to consider?

To date the government has ruled out changes to the GST system, changes to capital gains tax and negative gearing (or has it?).  What we do know for sure is it hasn’t ruled out changes to superannuation. 

Most tipsters are predicting there will be some form of change to super for high wealth individuals.  We’ve already got a super contributions surcharge for taxpayers who earn over $300,000….so what’s next?

Whatever the Budget brings, most likely taxpayers will have until July 1, 2016 – or even January 1, 2017 – to prepare.  Some new rules, however, could be effective immediately from budget night. 

Therefore based on the above we’d recommend you consider the following prior to budget night:

  • Maximise your contributions 
  • Review your current pension arrangements or look at setting up a pension (if eligible)
  • Consider spouse contribution splitting
  • Look at timing of asset sales – just in case there are capital gains tax changes within super

So what’s on your list of the above to do before 3 May 2016?

Kim Jay CA – Director