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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What you need to know.
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