So we’ve finally heard Scott Morrison’s federal budget (3/5/2016).
From the information supplied to date the most prominent changes are to super and small business. From a small business perspective, the increase in turnover that defines a small business, means any business with a turnover of less than $10,000,000 can now access tax concessions previously only available to small business with a turnover of less than $2,000,000. These concessions include being able to take advantage of the immediate tax write off for assets less than $20,000 to the proposed company tax rate cut. From an accountants (and business owners) point of view this is fantastic news!
However in regards to super, there’s mixed feelings. With contribution caps potentially being reduced to $25,000 per taxpayer (for concessional contributions) and a lifetime limit of $500,000 for non concessional contributions…. this means it will be harder to put money into super. In conjunction with these changes are the proposed limits on how much a superfund can have in pension mode and hence tax free earnings. The proposed limit from the budget is $1,600,000.
In addition to the above their are minor tax cuts to individuals earning over $80,000 per annum, the removal of the budget repair levy for high income earners and taxpayers will no longer have to pass the work test to contribute into super if they’re between 65 to 75 years old.
As far as timing of the above… we’ll have to wait and see if they get passed by the government and become legislation.
Kim Jay CA – Director