HOW DOES THE 2016-2017 FEDERAL BUDGET AFFECT YOU?

Significant changes from 1 July 2016 are:

– The company tax rate will reduce to 27.5% for companies with turnover < $10m.
  The turnover threshold to access the reduced tax rate will increase annually and the
  company tax rate will reduce to 25% by 1 July 2026

– The 32.5% tax threshold for individuals will increase from $80,000 to $87,000 

Significant changes from 1 July 2017 are:

–  The concessional superannuation contributions cap will be reduced to $25,000 from
   $30,000 or $35,000 (depending on your age)

–  Removal of the “work test” which will allow people aged 65-74 to more easily