The outcome for all working Australians
- If your take-home pay is under $37,000, your super fund will get a tax discount of up to $500, which will minimise or even cancel out your super tax bill.
- From July 2017, if you earn over $250,000, super contributions above that amount will be taxed at twice the rate, or 30%. Previously this threshold was $300,000.
- The government will also reduce the annual cap on concessional super contributions – the amount you can put away as a salary sacrifice and pay 15% tax on. Currently this is $30,000 a year for people aged under 50, and $35,000 for those 50 and over. The new cap will be at $25,000 a year for everyone.
- If you earn over $80,000 you are in line for an income tax cut. The threshold at which you begin to pay 37 cents on the dollar has been increased from $80,000 to $87,000. This means that more of your income will be taxed at the lower rate of 32.5%.
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