Federal Budget 2016-17
The Biggest Changes to Super Since 2006?
We haven’t seen so many important changes to superannuation since Peter Costello announced the ‘Simpler Super’ in 2006.
Last night Federal Treasurer Scott Morrison handed down the Federal Budget for the 2016–17 financial year. The Budget measures are designed to aid Australia’s transition from a mining-led economy to a stronger, more diversified economy that encourages innovation and supports job growth.
Although the Budget offers tax breaks to support low income earners and small businesses, far-reaching changes to superannuation rules are likely to impact the retirement strategies of many Australians. Key Budget announcements include:
- changes to the contributions caps, including the introduction of a lifetime non-concessional cap
- limits to how much can be transferred into pension phase
- removal of work tests for contributions for individuals aged between 65 and 74
- extending eligibility to claim deductions for personal contributions
- restricting tax-concessions associated with transition-to-retirement pensions.
The Budget also included a number of changes to company tax rates and concessions. Finally, it is important to note that the Budget announcements are still only proposals at this stage and will depend on the outcome of the upcoming election and on the proposals being legislated.
To find out more, contact the Team at Wise Accountants on Telephone (08) 8364 3246.