The 2016-17 Federal Budget was handed down on 3 May 2016.
The main budget measures likely to affect you are outlined below, together with information about other measures that may be of interest to you. To ensure you know precisely how you may be affected by one or more of these measures, you should consult your tax adviser.
Budget measures affecting individuals and families:
Changes to individual marginal tax rates
From 1 July 2016, the 37% marginal threshold will apply to the taxable income of individuals from $87,000. To compare, currently, taxable income above $80,000 is subject to the rate of 37%.
Changes to GST and other indirect taxes
GST on low value imports
From 1 July 2017, GST will apply to all low value goods imported by consumers from overseas. Imported low value goods should be subject to the same GST treatment as low value goods purchased by consumers domestically.
Overseas suppliers with an Australian turnover of $75,000 or more will be required to register for GST and collect and remit GST for low value goods supplied to Australian consumers. A ‘vendor registration’ model will be used for overseas suppliers to register for GST. These arrangements will be reviewed after two years to ensure they are operating as intended and to take account of any international developments.
To read more on Budget measures affecting businesses click here. And for more information on Superannuation changes click here.
Source: Taxwise