May 4 2016
2016 Federal Budget Snapshot: Superannuation update
The main changes to Federal Budget 2016 that will impact Salary and Wage earners are the changes to Superannuation and Personal Taxation rates.
To keep you updated, please find the below proposals being reviewed:
- Extending the 30% tax on concessional contribution to those earning over $250,000 ($300,00 previously)
- Reducing annual cap of concessional superannuation contributions to $ 25,000 ($30,000 previously)
- Establishing a lifetime non-concessional contribution cap of $500,000
- Introducing a transfer balance cap of $1.6million on amounts moving into tax-free retirement phase, with balances able to increase above this cap, on account of tax free earnings, once transferred.
Personal Taxation rates
- An extension of the middle market personal 32.5% tax rate beyond an upper limit of $80,000 to $87,000