• Federal Budget 2016 - Individuals

Individuals

Superannuation – $500,000 Lifetime Cap for Non-Concessional Contributions (after tax contributions)

From Budget night 2016, individuals will be limited to a lifetime non-concessional contribution cap of $500,000 which will replace the existing annual non-concessional contribution cap of $180,000 per year (or $540,000 if the 2 year bring forward rule was applied). Read more.

Superannuation – Catch-up concessional contributions

From 1 July 2017, members with superannuation balances of less than $500,000 will have the ability to make additional concessional contributions up to the sum of their unused cap amounts. The unused cap amount is the total of the concessional contribution cap amounts that have not been utilised in previous years. Read more.

Superannuation – Concessional Contribution Caps reduced

The Government has announced that it will cut the annual cap on concessional contributions (deductible superannuation contributions) to $25,000, applicable to all individuals regardless of age from 1 July 2017. Deductible contributions include employer Superannuation Guarantee, salary sacrifice amounts, and contributions claimed as deductions in personal tax returns. Read more.

Superannuation – Maximum pension account balances $1.6 million

From 1 July 2017, the Government will introduce a ‘transfer balance cap’ of $1.6 million. This will mean that all individuals will have a maximum amount of benefits which can be held in a pension account and receive concessional income tax treatment.  Read more.

Superannuation – Restrictions to Accessing Transition to Retirement Income Streams (TRIS)

Under the current rules, Australians who have reached their preservation age (i.e. currently 56 years of age) can commence a Transition to Retirement Income Stream (TRIS) while still working. Read more.

Tax Cuts for Average Wage Earners

The Government has announced that it will increase the average 32.5% personal income tax bracket from $37,001 - $80,000 to $37,001 - $87,000, effective 1 July 2016. It is expected that this will prevent half a million average full-time wage earners from moving into the second top tax bracket until 2019-20. Read more.

Increase to tobacco excise

The Government has announced a number of measures aimed at further discouraging smoking and improving the health of Australians. This includes increasing tobacco excise, and excise equivalent customs duties by 12.5% per year for the next four years. Read more.

GST and customs duty reforms

The Government has recommitted to implementing its August 2015 proposal to extend the GST to low value goods imported by consumers from 1 July 2017. The Government also announced a number of minor changes to simplify the GST for small businesses, and customs duties for importers. Read more.

Higher Education Loan Programme

The Government introduced changes to the Higher Education Loan Program (HELP) repayment framework in the 2015 Budget to recover repayments of debts owed by overseas residents who live or intend to live overseas for more than six months in any 12 month period. Read more.