The 2016-2017 Budget introduced a lifetime limit of $500,000 for non-concessional superannuation contributions effective 7:30pm on 3 May 2016.
Significant changes from 1 July 2016 are:
– The company tax rate will reduce to 27.5% for companies with turnover < $10m.
– 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
– Removal of the “work test” which will allow people aged 65-74 to more easily
contribute to superannuation
– The ability for all individuals to claim a tax deduction for personal concessional
– Creation of a $1.6 million dollar superannuation pension cap
Please note the 2016-2017 budget initiatives have not been passed through Parliament at time of printing and are subject to change.
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.