FEDERAL BUDGET AND FINANCIAL STRATEGIES

May 6, 2016 Posted by CB Financial

Financial strategies and the Federal Budget

Federal Government handed down its annual budget on Tuesday evening and there has already been much commentary. It contained the following key points related to your financial planning strategies:

increased contribution flexibility
new lifetime non-concessional contributions cap
reduced concessional contributions cap
change to the taxation of transition to retirement income streams
$1.6 million cap on the amount that can be transferred into a tax-free retirement income stream.

Other significant financial planning-related items were:

increased income threshold where the 37% tax rate starts to apply for individuals
removal of the anti-detriment provisions for superannuation death benefit payments
a reduction in the company tax rate for small businesses earning below $10m
removal of barriers to innovation in retirement income stream products.

Clearly many of these changes will impact on your financial plans if they are implemented. Regardless there are actions that should be taken now, and others that should be planned for. Therefore we recommend a revision of your plans as soon as possible.

A more detailed review of the budget is available HERE.

To enquire about how the announcements may affect you, or to book an appointment for a review, please contact us on 07 3223 6000.