What the Budget means for your personal and business tax?
The budget delivers benefits to more small businesses.
This year’s budget delivers benefits to more SMEs.
- 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.