Concessional Contributions Cap Reduced to $25k The annual cap on concessional superannuation contributions will be reduced to $25,000 from 1 July 2017. There will be one cap for all taxpayers irrespective of their age. The cap is currently dependent on the age of the taxpayer as on 30 June of the previous financial year: under…
Large multinationals – integrity measures “Google tax” – A new diverted profits tax There will be a new tax aimed at large multinational corporations that artificially divert profits from Australia, from 1 July 2017. A 40% tax on “diverted profits” will apply where the company shifts profits offshore through arrangements that exhibit certain characteristics. The…
GST will apply to low value imports From 1 July 2017, the GST will apply to low value goods imported by consumers. The intent of this measure is that low value goods imported by consumers will face the same GST regime as goods sourced domestically. Overseas suppliers that have an annual Australian turnover of $75,000…
Raising the 32.5% personal income tax threshold The Government will increase the 32.5% personal income tax threshold from $80,000 to $87,000 from 1 July 2016. This measure will reduce the marginal tax rate on incomes between $80,000 and $87,000 from 37% to 32.5%. The Government anticipates that this change will prevent around 500,000 taxpayers from…
The Government will increase the small business entity turnover threshold from $2 million to $10 million from 1 July 2016. The current $2 million threshold will be retained for access to the small business CGT concessions. The eligibility threshold for the unincorporated small business tax discount will be raised to $5 million. The Government anticipates…
The $20,000 temporary instant asset write-off is extended to businesses with an aggregated annual turnover of less than $10 million. The write-off can provide businesses with some cash benefit. For example, a business with an effective tax rate of 30% can receive up to $5,999 as a tax refund if an asset costing less than…
From the 2016-17 income year, companies with annual turnover less than $10 million will have a company tax rate of 27.5%. This will decrease the tax rate for around 870,000 companies who employ around 3.4 million workers. Since many small businesses are not companies, from July 1, 2016, the government will also increase and extend…