The 2016-2017 Federal Budget
On Tuesday 3 May, the Federal Treasurer, The Hon Scott Morrison MP, handed down the 2016-2017 Federal Budget announcing a range of proposed changes and initiatives, particularly to superannuation.
How will the Budget affect you?
Click here for the complete wrap up.
Please be aware that these are only proposals and the Budget announcements still need to be passed by both the House of Representatives and the Senate before they become law, and should be discussed with one of our Taxation or Financial Advisers.
Superannuation
Changes to super were wide-ranging and aimed to help those on lower incomes while trimming some of the more generous concessions available to those on higher incomes, such as:
- Introduction of a $500,000, lifetime, non-concessional superannuation contribution cap.
- A new transfer balance cap of $1.6 million on superannuation that can be held in pension phase.
- Changes that reduce the tax-effectiveness of transition to retirement strategies.
- Reduction of the superannuation annual concessional cap to $25,000, regardless of age.
- Introduction of ‘catch-up’ superannuation concessional contributions for those with super balances under $500,000.
- Removing the work test for people aged between 65 and 74 who want to make voluntary superannuation contributions
- Assistance for low income earners
Click here to read a brief Superannuation summary or watch this short video.
This has been prepared by Western Pacific Financial Group Pty Ltd (WP) | ABN 35 050 159 156 | AFSL 224662
This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should
assess your own circumstances or seek advice from a financial advisor and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.
Part of the IOOF group
This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should
assess your own circumstances or seek advice from a financial advisor and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.
Part of the IOOF group
All information provided in the attached pdf newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.