It is budget time again and that means thresholds, settings and rules are changing. You have likely heard of some of the big changes, but at Sinclair Wilson we have dug deep into the 2016 budget to ensure we can provide the best possible tax planning, investment and superannuation advice for you.
If you are unsure about how any of the proposed changes in the 2016 Budget will affect you, give us a call. We can give you personalised advice, tailored to your specific circumstances and ensure you are on track to the best possible financial outcome.
Budget 2016: Some noteworthy proposed changes:-
Personal Income Tax:
- Increase to the threshold for the 32.5% personal income tax bracket from $80,000 to $87,000
- Removal of income tax exemptions on earnings from assets supporting Transition to Retirement Income Streams (TRIS)
- Increases to Medicare low-income thresholds
- Increase to the threshold for the low income spouse superannuation tax offset from $10,800 to $37,000
Business Taxes:
- Immediate increase to the Small Business Tax Offset (SBTO) from 5% to 8%
- Increase in the threshold governing access to many small business concessions from $2m annual turnover to $10m annual turnover
- Phased reduction of the company tax rate from 28.5% to 25% over 10 years with smaller companies, with a turnover less than $10m, enjoying an immediate reduction
Superannuation:
- Introduction of a $1.6m cap to the total amount of accumulated superannuation which can be transferred into retirement phase
- Requirement for Superannuation members already in the retirement phase to reduce their balance to $1.6m by July 1st 2017
- Taxation of retirement phase superannuation funds in excess of $1.6m in a similar way to non-concessional contributions
- Introduction of a $500,000 lifetime cap on non-concessional contributions into superannuation funds
- New Low Income Superannuation Tax Offset (LISTO) to provide a tax offset of upto $500 per year for superannuation members with taxable incomes below $37,000