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PROPLAN > 2016 Federal Budget MASSIVE contributions and TTR Changes

Summary:

  • July 1 2017 all concessional contributions caps will drop from $35k pa to $25k pa.
  • Effective May 3 budget night 2016 lifetime cap of $500,000 for all non concessional (after tax) contributions
  • No activity test for contributions to super for 65-74 year olds effective July 1 2017
  • July 1 2017 a cap of $1.6million on transfers from Super to Allocated Pension. Balance above this has to go back to super and consequently taxed at 15%.
  • Additional 15% contributions tax reduced from current $300k pa down to $250k pa.
  • Transition to Retirement Pension funds will have their earnings taxed at 15% from 1 July 2017
  • Anti detriment payments abolished from 1 July 2017
  • Extended ability to claim tax deductions on contributions up to your Caps up to age 75
  • Company taxation reduced to 25% from 2026 for all companies

Detailed summary attached complements of Colonial First State.

 

 

 

 

 

2016-federal-budget-briefing

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