The 2016 Federal Budget was quite a mixed bag, with some wins for middle income earners and small business and some big changes planned for superannuation.
Here is our quick snapshot of key points from this year’s budget announcement:
- There will be a reduction in company tax from 28.5% to 27.5%.
- The small business tax discount will increase from 5% to 8%.
- Individuals earning between $80,000 and $87,000 will stay in the tax bracket of 32.5%, rather than being taxed 37%.
- One to watch is superannuation. There were some big changes announced including an increase on the threshold for a caps on concessional contributions to and plans to introduce a cap on the amount you can convert from your super into a pension.
- GST will be introduced for online purchases no matter their value.
As always the budget is never set in stone, and in an election year we are faced with even more uncertainty. However over the coming months the Atticus Business Accountants team will continue to monitor this and be on top of any opportunities or pitfalls for our clients. If you’d like to discuss in more detail how this year’s Federal Budget may affect you please contact us on [email protected] or call (07) 4642 5800 for a chat.