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.
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.
About the Author
NAB’s Group Economics consists of a leading team of economists who provide accurate, timely and relevant updates on domestic, international and industrial economic trends.
Headed up by the Group Chief Economist, Alan Oster, the team is comprised of three distinct departments:
- Australian economics and commodities
- International economics
- Industry economics
The team publish a wealth of content including reports, surveys, forecasts and indexes.
