Here are a few fast facts about how the budget
may affect you.
Superannuation
-
Objective
of superannuation to be made law – “to provide income in retirement to
substantiate or supplement the Age Pension”
-
Cap
of $1.6 million to be applied to the amount of superannuation earnings that can
be tax-free during retirement – excesses of $1.6 million to be taxed at
concessional rate of 15%
-
Annual
cap on concessional superannuation contributions will be reduced to $25,000 –
previously $30,000-35,000
-
Life-time
non concessional cap of $500,000 to replace existing annual caps
-
Higher
tax rate of 30% to apply to contributions of those earning more than $250,000 –
previously 15% tax rate
-
Further
reforms are expected
Enterprises
-
Small
business company tax to be lowered to 27.5%
-
Threshold
for small businesses to be raised to companies with an annual turnover of less
than $10 million (previously $2 million)
-
Unincorporated
small businesses to receive increased tax discount from 5% to 16% over 10 years
-
Company
tax rate is to be reduced to 25% over 10 years
Multinational
corporations
-
40%
tax penalty rate to apply to multinational corporations that attempt to shift
their profits made in Australia offshore – “Diverted Profits Tax”
Individuals
-
Threshold
for marginal tax rate of 37% to be increased from $80,000 to $87,000
-
GST
to apply to low value goods imported by consumers (i.e. less than $1,000)
-
Investors
– no changes to negative gearing (yet)
-
Smokers
– cigarettes to be subject to 4 annual increases of 12.5% from 2017 to 2020 –
time to quit?
G&B Lawyers
Office: Suite 1, Level 1, 229 Macquarie Street, Sydney, NSW 2000
Mail: GPO Box 1849, Sydney, NSW 2001
M: 0481 287 528 | 0401 175 934
W: www.gandblawyers.com.au
No comments:
Post a Comment