<\/p>\n

2016 Federal Budget – what it means to you<\/p>\n

As you know the Government released the 2016\/17 Federal Budget with a number of proposed changes below.\u00a0 We will gain clarity on the proposed changes as new information and further detail becomes available to us.\u00a0 Once we have further clarity, we will contact you directly should we identify any actions or changes which need to be made.<\/p>\n

Superannuation\u00a0 – better targeting of concessions<\/strong><\/em><\/p>\n

– Annual cap on concession contributions will reduce to 25,000 for all taxpayers<\/p>\n

Age\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Annual cap amount\u00a0<\/strong>
\nIn 2015\/16 and 2016\/17<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0From 2017\/18<\/strong>
\n48 or under on 30 June 2015\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $30,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $25,000
\n49 or over on 30 June 2015\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $35,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $25,000<\/p>\n

– ‘Catch-up’ concessional contributions
\n– Additional tax on concessional contributions<\/p>\n

Income\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tax on concessional contributions
\n<\/strong>In 2015\/16 and 2016\/17<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0From 2017\/18<\/strong>
\n<$250,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 \u00a0 15% \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0\u00a0 15%
\n$250,000 to $300,000 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15% \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0\u00a0\u00a0 30%
\n$300,000 + \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0\u00a0 \u00a0 30% \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0\u00a0 \u00a0 30%<\/p>\n

Superannuation – better targeting of concessions<\/strong><\/em><\/p>\n

– Changes to non-concessional contributions – from Budget night
\n– LIfetime cap of $500,000
\n– Replaces existing annual caps
\n– All non concessional contributions made on or after
\n1 July 2007<\/p>\n

– Superannuation pension limits – from 1 July 2017
\n– a balance cap of $1.6m on the total amount of accumulation
\nsuper that can be transferred into tax-free retirement phase<\/p>\n

Superannuation – enhancing flexibility and choice –
\nfrom 1 July 2017<\/strong><\/em><\/p>\n

– Harmonising contributions between aged 65 and 74
\n– removal of work test
\n– open up the ability for spouses over 70 to receive contributions<\/p>\n

– Restrictions on personal superannuation contribution deductions eased
\n– all individual up to age 75 will be allowed to claim an income tax
\ndeduction for personal superannuation contributions<\/p>\n

Superannuation – improving integrity – from 1 July 2017<\/strong><\/em><\/p>\n

– Transition to retirement pensions
\n– tax exemption on earnings of assets supporting Transition to
\nretirement income streams will be removed
\n– same taxation as accumulation superannuation to apply
\n(ie 15%)<\/p>\n

– Anti-detriment death benefit provision removed<\/p>\n

Personal tax rate changes<\/strong><\/em><\/p>\n

– Targeted personal income tax relief<\/p>\n

Current tax Thresholds\u00a0 Tax rate\u00a0\u00a0 New tax Thresholds Tax rate\u00a0<\/strong>
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2015\/16\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2016\/17<\/strong>
\n$0 – $18,200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 \u00a0\u00a0 0%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $0-$18,200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 \u00a0 0%
\n$18,201 – $37,000\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 19%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $18,201 – $37,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 19%
\n$37,001 – $80,000\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 32.5%\u00a0\u00a0\u00a0\u00a0 $37,001 – $87,000\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 32.5%
\n$80,001 – $180,000\u00a0 \u00a0\u00a0 \u00a0 37%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $87,001 – $180,000\u00a0 \u00a0 \u00a0\u00a0 37%
\n$180,000+\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 \u00a0 45%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $180,000+\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 45%<\/p>\n

Other personal tax rate changes<\/strong><\/em><\/p>\n

– Spouse superannuation tax offset
\n– Temporary Budget Repair Levy<\/p>\n

Date of effect\u00a0\u00a0 Measures\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 Details<\/strong><\/p>\n

1 July 2017\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Spouse superannuation\u00a0\u00a0\u00a0\u00a0 – Spouse income threshold will
\ntax offset\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 increase from\u00a0 $10,000 to
\n$37,000
\n– Maximum tax offset will
\nremain at $540<\/p>\n

1 July 2017\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Temporary Budget\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0 This levy, which is 2% of
\ntaxable Repair Levy income in
\nexcess of $180,000 will
\nexpire on 30 June 2017
\nas legislated<\/p>\n

Company tax rate<\/strong><\/em><\/p>\n

– Staggered cuts to the company tax rate<\/p>\n

Maximum business turnover to be eligible for 27.5%
\ncompany rate<\/strong><\/p>\n

Tax Year<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02016\/17<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a02017\/18\u00a0\u00a0\u00a0 2018\/19\u00a0\u00a0\u00a0 2019\/20\u00a0\u00a0<\/strong>
\nTurn Over<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $10m\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0\u00a0 $25m\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 $50m\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $100m<\/p>\n

Tax Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2020\/21\u00a0 \u00a0\u00a0 2021\/22\u00a0\u00a0\u00a0 2022\/23<\/strong>
\nTurn Over\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>$250m \u00a0 \u00a0\u00a0\u00a0 $500m\u00a0\u00a0\u00a0\u00a0 \u00a0 $1b<\/p>\n

– Further company tax rate changes<\/p>\n

Tax Year\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a02024\/25\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2025\/26\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 \u00a0 2026\/27<\/strong>
\nAll Companies<\/strong>\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 27%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 26%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 25%<\/p>\n

Measures not announced or affected<\/strong><\/em><\/p>\n

– Negative gearing
\n– Child care rebate
\n– Age Pension
\nPlease don’t hesitate to contact our office should you have any queries. However we will be in contact once the changes have been finalised and if you will be affected.<\/p>\n

Yours sincerely<\/p>\n

Stevens Roberts Financial Planning Team<\/strong><\/p>\n

This presentation has been prepared by Greg Stevens CAR . Launce Kent and Corey Roberts, Trading in Partnership as Stevens Roberts Financial Planning (ABN. 04169074) ABN. 63 277 397 276 are authorised representatives of Meritum Financial Group Pty Ltd, ABN 93 106 888 215 an Australian Financial Services Licensee 245569, Registered Office at 105 \u2013 153 Miller Street, North Sydney NSW 2060 and a member of the National Australia group of companies.
\nThis advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and\/or legal advice prior to acting on this information.
\nInformation in this presentation is accurate as at 3 May 2016. In some cases the information has been provided to us by third parties.\u00a0 While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.
\nOpinions constitute our judgement at the time of issue and are subject to change. We do not give give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
\nCase studies in this presentation are for illustration purposes only. The investment returns shown in any case studies in this presentation are hypothetical examples only and do not reflect the historical or future returns of any specific financial products.\u00a0 Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns. A
\nny tax information provided in this presentation is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or a complete assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

2016 Federal Budget – what it means to you As you know the Government released the 2016\/17 Federal Budget with a number of proposed changes below.\u00a0 We will gain clarity on the proposed changes as new information and further detail becomes available to us.\u00a0 Once we have further clarity, we will contact you directly should Read more about 2016 BUDGET WHAT IT MEANS TO YOU<\/span>[…]<\/a><\/p>\n","protected":false},"author":1,"featured_media":67,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/posts\/66"}],"collection":[{"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/comments?post=66"}],"version-history":[{"count":1,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/posts\/66\/revisions"}],"predecessor-version":[{"id":68,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/posts\/66\/revisions\/68"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/media\/67"}],"wp:attachment":[{"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/media?parent=66"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/categories?post=66"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wealthevolution.net.au\/blog\/wp-json\/wp\/v2\/tags?post=66"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}