BUDGET 2016

(Some changes of Budget 2016 that may affect clients at TAAP office)

WINNER
Small business
Threshold to be considered as small
will rise from $2m to $10m
Tax reduced from 28.5% to 27.5%
ATO
Recover lost tax revenue from Tax
Avoidance Taskforce
Upper middle earners
The limit increase from $80000$87000
Roughly top 25% Aussie will benefit.

LOSER
Multinational corporations
Companies like Google and Apple
will be taxed at 40%
Smokers
University students

SUPERANNUATION

They've upped the tax on superannuation for higher income earners, so people
earning over $250,000 a year will be taxed at 30 per cent for any extra super
contributions over $25,000.
96 per cent of individuals with superannuation will not be adversely affected by
these changes unless they make concessional contributions of more than $25000
a year, have income and contribution of less than $250000, have a super balance
of less than $1.6m, make or plan to make more than $500000 for nonconcessional contributions.

PEOPLE WHO EARNED $80,000 OR MORE

The government is increasing the upper limit for the second highest tax bracket of
37 cents in the dollar from $80,000 to $87,000.
Rather than being taxed at 37 per cent on every dollar earned over $80,000,
workers in that magic range will stay on the 32.5 per cent tax rate.

SMALL BUSINESS

Small businesses are getting another tax cut from 28.5% to 27.5%
At the same time, the instant tax deduction for business equipment under
$20,000, first introduced for small businesses last year, will be extended to
businesses with turnover of less than $10 million.

PEOPLE ON LOW INCOMES

The Medicare levy low-income thresholds will be increased to $21,335 (for a single
person), so that low income taxpayers can continue to be exempted from paying
the Medicare levy.
The government will also keep a tax offset that means they will get up to $500 of
the tax they pay on their super refunded if they earn less than $37,000.

Hayley Le

4/5/2016