Federal Treasurer Scott Morrison put forward a number of proposed changes, mainly around contributions to superannuation and taxation, in his 2016 budget speech.
On the 3rd of May, Federal Treasurer Scott Morrison announced his budget in Parliament. There were many initiatives announced including significant amendments to the superannuation scheme.
Superannuation topics include:
Lifetime cap for non-concessional superannuation contributions
Reduction of the concessional contribution cap
Reduction to Division 293 tax threshold
Allowing catch up concessional contributions
Removal of the work test to contribute to superannuation
Making it easier to claim tax deductions for personal super contributions
Introducing the Low Income Super Tax Offset (LISTO)
Making spouse contributions more attractive
Changes to the taxation of Transitioning to Retirement (TTR) income streams
Introduction of a $1.6 million superannuation transfer balance cap
Taxation topics include:
Changes to marginal tax rates
Increase in small business entity turnover thresholds
Lowering the company tax rate to 25 per cent
Unincorporated small business tax discount
Families and social security proposals include:
Deferral of reforms to child care payments.
AMP have provided a financial snapshot of the proposed changes. We are working behind the scenes to understand the impacts of these proposals should they become legislated and will be in touch with our clients to help them navigate a new economic climate.
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