Treasurer Scott Morrison has delivered his first budget and as expected, there were few surprises in areas he targeted. So, how does Budget 2016/17 shape up for you?
Superannuation
Introduction of a $1.6 million superannuation balance transfer cap an individual can transfer tax-free into retirement phase accounts
Reduction of $250,000 the threshold of combined income and superannuation contributions at which an individual pays 30 per cent tax
Lowering of the concessional superannuation cap to $25,000
Introduction of a $500,000 lifetime cap for non-concessional contributions
Introduction of Low Income Superannuation Tax Offset for those earning less than $37,000
Removal of current restrictions on those aged between 65 and 74 who continue to pay superannuation contributions
Increase the income threshold from $10,800 to $37,000 for receiving spouse superannuation contributions
Retirement
Removal of restrictions on the development of new retirement income products
Tightening of the rules surrounding transition to retirement strategies to close potential tax loopholes
Taxation
Increase to the Medicare levy threshold for low-income earners
Increase to the middle tax bracket threshold for those earning over $80,000
Four annual 12.5 per cent increases in tobacco excise
Welfare
Removal of the Clean Energy Supplement for new welfare recipients after 1 July 2017
Tougher assessments for 90,000 Australians currently receiving a Disability Support Pension
Better targeting of dental services for low income adults
Maintainence of the current level of Medicare Benefits Schedule fees for all services until 2020
Is there anything you think should have been included that wasn’t?
Keep an eye on your inbox tomorrow morning for more information on each of these items.
Related articles:
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Budget 2016/17: Super changes for high income earners
Budget 2016/17: Reducing the tax burden
Budget 2016/17: Targeted welfare safety net
Budget 2016/17: Crackdown on multinational tax avoidance
Budget 2016/17: How will the new tax changes affect the individual?
Budget 2016/17: Government to invest a record $50 billion on infrastructure
Budget 2016/17: Scott Morrison on a fairer super system
Budget 2016/17: Making super fairer and sustainable
