2016 Federal Budget Summary

Treasurer Scott Morrison has handed down his first Federal Budget - the Coalition Government’s third. 

The winners are low and middle income earners, unemployed youth and small business, and there are significant changes to superannuation.

Note: These changes are proposals only and may or may not be made law.

The headlines

• The introduction of a superannuation reform package consisting of ten measures, including changes to contribution caps, the introduction of a balance transfer cap and measures that impact transition to retirement pensions

• Personal tax cuts. The upper limit of the middle income tax bracket (32.5% tax rate) will be raised from $80,000 to $87,000 from 1 July 2016 to help combat bracket creep

• Low income earners will continue to be exempt from paying the Medicare levy with the low income threshold being increased to $21,335 from 2015-16 income year

• Tax cuts for small businesses – and simplified GST reporting requirements

• A tax avoidance taskforce will be established targeting high income earners, multinationals and large organisations

• A major government contribution will be made to public hospital services

• A youth employment package – including a work for the dole program for under 25s

• New funding over three years to continue tackling family and domestic violence

• Ongoing increases in tobacco excise

What’s not changed

• No changes to negative gearing

• No changes to age pension eligibility or payment rates. Some important changes to the aged pension assets test have, however, already been legislated – taking effect on 1 January 2017

Download the full analysis here: 2016 Federal Budget Summary

If you’d like to discuss anything in this years Federal Budget please do not hesitate to contact us at the office on 02 9977 8077.