DarrenJMorris's JumboTweets
The budget and you
The 2016-17 Federal Budget is a budget of targets – broad targets to boost business and innovation, and the narrow revenue targets of the wealthy and multi-nationals. Designed to give enough pre-election glow but with structural measures to control spending and reduce concessions.
So how does this effect you?
https://cxc.xplan.iress.com.au/docnote/files/ea59a504780b0245/143880
Retirement planning
the work test was abolished as at budget night, re-opening the door to all contributions for those between the age of 65 – 74.
Concessional contribution caps (pre-tax) will be lowered to $25,000 from 1 July 2017.
· Personal contributions to super will provide a tax deduction (up to $25,000), regardless of your employment status. Currently the deduction is limited to the unemployed, self-employed or ‘substantially self-employed’.
· Individuals with superannuation balances under $500,000 will be entitled to rollover their unused concessional contributions caps from the previous 5 years.
· Non-concessional contribution caps (post-tax) will be reduced to a ‘life-time limit’ of $500,000 effective from 7.30pm budget night. This will include all non-concessional contributions made from 1 July 2007.
· $1.6 million superannuation transfer balance cap, effective 1 July 2017. This will limit the amount that a single member can hold in a tax-free retirement account, with the balance above $1.6 million required to be held in accumulation with a 15% tax rate on earnings.
· Transition to retirement pensions (TTR) will lose their tax concessions within superannuation (effective 1 July 2017), and the assets supporting the pension will continue to be taxed at 15% until all benefits are unrestricted non-preserved. This will not be grandfathered to those in existing TTR pensions.
· Anti-detriment payments will be abolished from 1 July 2017.
https://cxc.xplan.iress.com.au/docnote/files/ea59a504780b0245/143879
Personal wealth accumulation
32.5% personal income tax threshold will increase from $80,000 to $87,000 from 1 July 2016.
· Division 293 superannuation tax will be introduced for those earning above $250,000. This will see an additional 15% tax on concessional contributions, up to a total rate of 30%. This change involves reducing the threshold from its current level of $300,000. Based on $25,000 in contributions, this can increase the tax on contributions by $3,750.
· Low-income superannuation tax offset will be introduced to reduce the effective tax rates on concessional contributions to super for those with incomes under $37,000.
· Spouse superannuation tax offset will provide a contributing spouse with an 18% tax offset for a $3,000 contribution into the lower-income earning spouse’s account. The lower income threshold will be raised from $10,800 to $37,000.
https://cxc.xplan.iress.com.au/docnote/files/ea59a504780b0245/143878
Big, medium and little business
Reducing the company tax rate to 25% over 10 years. Franking credits will also be adjusted in line with the company tax rate.
Business entity aggregated turnover will increase from $2m to $10m for the purposes of accessing certain existing income tax concessions, allowing more business entities to gain access to small business concessions.
ASIC will receive $127.2 million over four years to fight against misconduct in the financial services industry.
The ATO will receive an additional $678.9 million to establish a new Tax Avoidance Taskforce. This will include the introduction of “UK style” diverted profits tax to reign in multinationals with global revenue of $1billion or more.
Finally, we remind you that the above announcements are still only proposals at this stage and will depend on the outcome of... <<<<<< N.B from Jumbotweet: auto-truncated at 4K characters on index page - Click here or on the "view" link to see entire jumbotweet! http://www.jumbotweet.com/ltweets/view/142429