The 2016 budget sees future tax discounts for companies and small business together with significant reforms restricting access to superannuation concessions. The company tax rate will be reduced to 25% over 10 years. The reduction will initially target companies with a turnover less than $10 million. The tax discount for unincorporated small businesses will increase incrementally over 10 years from 5% to 16%. The opportunities for tax planning, timing of asset sales and business restructuring are where Davies, Thompson and Wright can assist you and your business to make the most of these budget concessions.

Changes which may affect your retirement planning include a reduction in concessional contribution caps, the lowering of the Division 293 tax threshold, capping tax-free assets in retirement and a lifetime limit for non-concessional contributions. Davies, Thompson & Wright can assist you in reassessing your retirement plan in the light of these new restrictions.

For your information Davies, Thompson & Wright have this budget article for you which provides details on each area of the budget in good plain English.