Mercia | Taxation, Business & Finance Advisers

The quick budget 2016/17 snapshot:

• The concessional contribution cap reduces to $25,000
• Changes to non-concessional contribution limits with a lifetime cap of $500,000 introduced
• TTR pensions lose their tax exemption, and lump sums cannot be treated as income for tax purposes
• Catch up contributions can be made to super where the balance is less than $500,000
• The expected Super Tax (Div 293) contributions tax – threshold reduced to $250,000
• Anti-detriment provisions have been abolished
• The work test for over 65s has been abolished
• Individuals up to age 75 can make tax deductible contributions regardless of working situation
• Low income tax offset to replace the low income super contributions rebate from July 2017
• The income threshold for the spouse tax offset for super contributions increases to $37,000
• The $80,000 personal tax rate threshold increases to $87,000
• Small business tax rate cuts which extend to larger businesses over a ten year period
• The Gov’t ‘proposes’ to introduce a $1.6 million super transfer balance cap on the total amount of super that an individual can transfer to retirement accounts. The intention is to limit the amount of tax payer support for tax-free retirement phase accounts.