The Treasurer handed down the 2016-17 Federal Budget on Tuesday 3 May, 2016. It contains a number of measures which, if legislated, will impact on us as individuals and families.
Here is a brief overview of the impact on you if the Budget is approved and made law.
Personal tax matters
- The 32.5% personal income tax threshold will increase from $80,000 to $87,000 from 1 July 2016. Those earning above $80,000 will receive a maximum tax saving of $315 per year.
- The Medicare low-income threshold for singles, families and seniors and pensioners will increase.
- The Temporary Budget Repair Levy of 2% that applies to all income in excess of $180,000 will expire on 30 June 2017 as previously legislated.
Comparison of tax rates and threshold
Buying goods online? GST will apply to all imported consumer goods
|Current tax thresholds
|Tax rate||New Tax thresholds
|$18,201 – $37,000||19%||$18,201 – $37,000||19%|
|$37,001 – $80,000||32.5%||$37,001 – $87,000||32.5%|
|$80,001 – $180,000||37%||$87,001 – $180,000||37%|
|$180,000 +||45%||$180,000 +||45%|
NB: These tax rates do not include the Medicare levy and Temporary Budget Repair Levy.
For more information on how the proposed Budget may affect you, please feel free to contact our Accounting Team.
Buying something online
GST will apply to all imported consumer goods.
Currently, the GST system provides an exemption for goods that are imported into Australia with a value of less than $1,000. This exemption will be removed so that GST can apply to all goods imported by consumers from 1 July 2017.