Individuals, Tax Cuts and Superannuation
In a move to attract swinging voters, the Budget has revealed a seven-year personal income tax cut plan commencing 1 July 2018.
Several measures have been proposed, which are essentially designed to protect superannuation balances against erosion by fees, and which also introduce flexibility in the way that self-managed superannuation funds (SMSFs) can be used by larger groups of individuals. The measures provide initiatives which should benefit individuals in various ways.
A range of changes to the superannuation system applying to individuals have been announced in this year’s Budget.
The Government proposes to recover the cost of superannuation related activities undertaken by the Australian Taxation Office (ATO), by increasing the Financial Institutions Supervisory Levy (FISL). The increase in the levy from 1 July 2018, is estimated to raise $31.9 million dollars over four years and will be raised in a manner consistent with the Australian Government Cost Recovery Guidelines.