2016 Federal Budget
What to Expect from the 2016 Federal Budget
2016 Federal Budget
As the release of the Federal Budget grows closers, significantly more detail about the Coalition’s plans for Australia’s economic landscape has been revealed. Based on information gathered from various sources, here’s what we can expect from the 2016 federal budget:
- The high income superannuation threshold for heavily taxing superannuation contributions is expected to be reduced from $300,000 to $180,000.
- The current $80,001 threshold, above which dollars are taxed at 37 cents, is expected to be raised, creating a higher income bracket.
- The 2 per cent tax on earnings over $180,000 is expected to be abolished.
- There will be increased regulations placed on multinational tax avoidance and other tax loopholes.
- There will be deeper efficiency dividends in the public service sector to fund the increase to the $80,001 tax bracket. This may result in $1.2 billion worth of cuts to the public service sector.
- Multi-billion dollar packages to encourage private investment in infrastructure.
- Approximately $1.2 billion will be invested into education from 2018-2020, of which $118 million worth will contribute to additional assistance for students with disabilities.
- There will be an additional $127 million funding for ASIC in order to support their role as the central corporate regulator within Australia.
- There may be some reductions to the tax rates faced by businesses, as well as an extension of the $20,000 instant asset write-off for small-businesses.
- Low and middle income earners, such as women who have missed work to raise children for example, will likely have contributions to their retirement incomes raised from the budget, as the Government may decide to reverse its decision to abolish Labor’s Low Income Superannuation Contribution (an annual payment of $500). They may also introduce other methods to ensure that low-income earners are able to increase their retirement amounts.
There will not, however, be any changes to, or implications for, negative gearing, GST, or net spending, despite what the coalition have said in the lead up to the budget’s release.