Australian Federal Budget
2016-17 highlights
The numbers game
May 2016
Large business
A long-term phased reduction
to the company tax rate to
25% to encourage investment.
Small company rate further
extended to progressively larger
and larger companies over the
medium-term.
Individuals
A modest personal tax rate cut
for taxpayers earning over $80,000.
The $20,000 instant write-off
will be available for one year to
businesses earning less than
$10 million.
Multinationals
A new Diverted Profits Tax for
significant global entities using
artificial or contrived arrangements
to reduce tax by diverting profits
offshore.
Super
Individuals earning over $250,000
will pay higher taxes on their
superannuation contributions.
Further superannuation support
to be provided to low income
earners in the form of a low
income superannuation tax offset.
Replacement of the annual
superannuation non-concessional
contributions cap by a lifetime
cap of $500,000.
The annual superannuation
concessional contributions cap
to lower to $25,000.
A limit of $1.6 million introduced
on the amount that can be
transferred in the retirement phase.
“
Small & medium business
Initial tax rate cut of 1% to 27.5%
and extended to businesses
earning less than $10 million
(previously $2 million).
Increased maximum penalties
for significant global entities for
failing to lodge ATO documents.
New anti-hybrid rules and tighter
transfer pricing rules.
A new Tax Avoidance Taskforce led
by the Commissioner of Taxation.
Tonight’s Budget was asked to do the impossible –
to repair the deficit, boost the economy, deliver tax reform,
pay for tax cuts, protect the AAA credit rating –
and all while boosting popularity in an election year.”
Chris Richardson, Partner, Deloitte Access Economics
© 2016 Deloitte Touche Tohmatsu