What the Budget means for your personal and business tax?

The budget delivers benefits to more small businesses.

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This year’s budget delivers benefits to more SMEs.

Key Initiatives:

  • Raising the 32.5% personal income tax threshold from $80,000 to $87,000 from 1 July 2016.
  • Major SME tax changes – the small business threshold will be increased to $10m, reduced tax rates for small business and lower barriers to access small business tax concessions.
  • A phased reduction in the company tax rate over 10 years to 25% under a Ten Year Enterprise Tax Plan including tax simplification and increasing integrity.
  • Significant new measures directed at tax avoidance for multinationals, eg, a diverted profits tax, hybrid mismatch measures, strengthened transfer pricing rules.
  • Changes to superannuation:

– Concessional contributions cap cut to$25,000 from 1 July 2017.

–  Concessional contributions catch-up for account balances of less than $500,000.

– Superannuation contributions tax (extra 15%) for incomes greater than $250,001.

– Integrity measures for transition to retirement income streams.

For full analysis, download report (PDF, KB)