2015 FEDERAL BUDGET SUMMARY
Compared to prior years, the 2015 Federal Budget was comparatively light on in its content. Many of the announcements made on 12 May 2015 had been announced in some detail in the lead up to the Budget, and there really weren’t any hidden surprises.
The Government has again promised that “there will be no new taxes on superannuation under this Government”, and certainly there were no changes announced on Budget night. This should provide you with a level of comfort that the superannuation system will have a degree of stability for the next couple of years. In fact, the only superannuation announcement of note was a positive move to allow those suffering a terminal illness to access their superannuation savings earlier.
The key initiatives in this year’s Federal Budget include:
- Accelerated depreciation for primary producers – Effective date: From 1 July 2016.
- Immediate deductibility for new business for certain start up costs – Effective date: From 1 July 2015.
- Capital gains tax relief for small businesses that change entity structure – Effective date: From 1 July 2016.
- Accelerated depreciation for small business taxpayers – Effective date: Immediately (7:30pm AEST on 12 May 2015) until 30 June 2017.
- Reduction in tax for small businesses – Effective date: 1 July 2015.
- Increase in the Medicare levy low income thresholds for families – Effective date: 1 July 2014.
- Release of superannuation for those suffering a terminal illness – Effective date: 1 July 2015.
- Changes to assets test thresholds and taper rates – Effective date: 1 January 2017.
- Improving integrity of social security income test arrangements – Effective date: 1 January 2016.
It is important to remember that the Budget initiatives have not been legislated and may be subject to negotiation and/or change.
If you are at all concerned with any of the Budget potential changes please do not hesitate to contact us.