Welcome to our Bongiorno & Partners (NSW) Federal Budget E-Newsletter
The Turnbull Government presented its first Federal Government Budget last night.
Our clients will pay less income tax on their personal income and potentially more income tax when retired in their superfund.
1) Less Personal Income Tax
The commitment to remove the “Temporary Budget Repair Levy” of 2% on 30th June, 2017 effectively reduces the top personal marginal tax rate from 47% back to 45% effective from 1st July, 2017 on personal taxable incomes exceeding $180,000.
Also, an increase in the 32.5% income bracket from $80,000 up to $87,000 reducing your personal income tax.
2) More Superfund Income Tax in Retirement
From 1st July, 2017 a cap on tax free earnings in a superfund has been limited to $1.6m of superfund assets per member.
The earnings on superfund assets exceeding $1.6m per member will be taxed at 15% on earnings and 10% on capital gains on those assets.
The Budget announcements last night are yet to be legislated. In this newsletter, you will find the main changes relevant to our clients.
If you have any questions, please contact us via email or on (02) 9326 2788.
Bongiorno NSW Team