According to The Australian Financial Review today, here are the winners and losers in the Australian federal budget 2016.
Company tax cut to 27.5 per cent for all small companies with annual turnover of up to $10m from July 1, 2016. Over next decade lower tax rate extended to all companies and then progressively reduced for all to 25 per cent by July 1, 2026.
Middle income earners
Increases middle tax bracket threshold of 32.5 per cent from $80,000 to $87,000. Prevents 500,000 taxpayers being pushed into 37 per cent tax bracket.
Young job seekers
Interns to get $200 a fortnight and their host employer to get $1000 per placement.
Wage subsidy gives employers $6,500 and $10,000 for taking on young job seekers.
People who don't salary sacrifice can make catchup payments in following years, if their super balance is below $500,000.
$50b infrastrusture spend on roads and rail, including Sydney and Melbourne metros and inland rail.
$2b water program to invest in new dams and pipelines across Australia.
Teachers and students
Additional $1.2b between 2018-2020 for schools contingent on better education outcomes.
$2.9b more for public hospital services plus new money for essential dental services for children and low income adults.
High end superannuation users and high income earners
New $1.6m cap on amount of super that can be transferred tax-free into retirement phase; 30 per cent tax on concessional super contributions extended to those earning over $250,000; annual concessional contribution caps cut to $25,000 for all; lifetime cap on $500,000 on all non-concessional contributions.
Earnings of transition to retirement income streams will be taxed to kill the incentive to use them to minimise tax.
New ATO taskforce to crackdown on tax avoidance and raise $3.7b by 2020.
Annual 12.5 per cent tax increase to continue to 2021.
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