JUNE 2016

With the final days of the financial year upon us, we hope you have attended to any year end tax planning. If you have not addressed any year end strategies as yet, and want to discuss what is available to you, call our office now!

June Super Contributions - June 2016 quarter superannuation contributions are not due until 28 July, however, if you wish to claim a tax deduction for your June contributions in your 2016 Tax Return, you need to pay these before 30 June.

Minimum Pension Withdrawal - Superannuation Fund clients need to ensure they have met minimum pension withdrawal requirements by 30 June.

PAYG Payment Summaries - Businesses paying wages need to ensure PAYG Payment Summaries are distributed to their employees no later than 14 July.

Workflow Scheduling - Workflow scheduling for the new financial year is happening right now and unless we have already spoken to you, you will have a similar tax month to last financial year. Once again salary and wage clients will not be sent a tax month letter. When you require assistance with completion of your tax return, please take advantage of our online services. You can upload your documents to us via our secure client area, or complete the Personal Tax Checklist and upload your supporting documents by clicking here.

Audit Shield Service - Once again, we will be offering an audit shield service to all of our clients. You will soon be receiving a renewal notice prompting you to take up this offer.

SuperStream Deadline - From 1 July 2016 you will need to pay super contributions for your employees electronically (EFT or BPAY) and send the associated data electronically. Cheque payments will no longer be accepted by superannuation funds.... Are you ready? 

Individuals and Families 

• From 1 July 2016, the 37% marginal tax rate threshold will increase from $80,000 to $87,000

Primary Producers

• Deposits to the Farm Management Deposits scheme that allow you to defer income to a later year will increase from 1 July 2016 to $800,000. Changes to the laws preventing FMDs being used as offset accounts will also be effective from 1 July 2016, however availability of offset accounts are at the banks discretion;
• Accelerated depreciation for primary producers;

1. Immediate deduction for the cost of fencing and water facilities such as dams, tanks, bored and windmills;
2. Fodder storage assets depreciated over 3 years; and
3. Primary producers that are small business entitles are eligible to write off assets costing less than $20,000 in the income year the asset is installed ready to use.

Businesses

• The Small Business Entity (SBE) turnover threshold will increase from 1 July 2016 from $2 million to $10 million (the increased threshold does not apply for the purpose of accessing existing small business capital gains tax concessions);
• Small Business Entities can immediately deduct assets purchased (or financed via chattel mortgage) and installed ready for use prior to 30 June 2017 with a GST exclusive cost of less than $20,000;
• Reduction in Small Business Entity income tax rates:

1. Small Business Entities (Companies) tax rate reduced from 30% to 28.5% for the 2016 F/Y and further reduced to 27.5% from 1 July 2016 (remember entities with a turnover of less than $10 million from 1 July 2016 will qualify);
2. Small business entitles (unincorporated) will be entitled to a small business tax offset of 5% of the income tax payable on the business income for the 2016 F/Y. This will increase to 8% on 1 July 2016. This offset is capped at $1,000 per individual.

Superannuation

• High income earners with income greater than $300,000, and making concessional contributions to their Super Funds, are subject to additional contributions tax of 15% tax. This income threshold is set to reduce to $250,000 from 1 July 2017.
• A member balance cap of $1.6 million will be introduced from 1 July 2017. This puts a cap on the amount members can transfer into a tax free environment. Balances above this threshold will be taxed at 15%.
• Earnings from assets supporting a Transition to Retirement Income Stream will no longer receive a tax exemption from 1 July 2017. Earnings will be subject to the usual 15% tax rate.
• Contribution caps have been significantly pared back as follows:

1. Non-concessional contributions now have a lifetime cap of $500,000 effective 3 May 2016. This cap is retrospective by taking into account all non-concessional contributions made on or after 1 July 2007. Any excess non-concessional contributions made after 3 May 2016 will need to be removed or subject to penalty tax.
2. Concessional Contributions cap is set to reduce from 1 July 2017 to $25,000 for all taxpayers regardless of age. The concessional contributions cap for the 2016 F/Y remain at:
   $30,000 for eligible taxpayers under 49 on 30 June 2015; and
   $35,000 for eligible taxpayers over 49 on 30 June 2015
3. From 1 July 2017, individuals with a superannuation balance of less than $500,000 will be allowed to make additional concessional contributions by way of rolling forward any unused cap amounts accrued from 1 July 2017 for a period of 5 consecutive years. 
4. The work test for those aged between 65 to 74 will be abolished from 1 July 2017.
5. From 1 July 2017, all individuals aged up to 75 years will be allowed to claim an income tax deduction for personal superannuation contributions.



If you believe these changes may affect you and you wish to discuss it with one of our accountants, contact us to make an appointment today.

Kind Regards 



The Team
Maxwell & Cameron Pty Ltd
www.maxcamaccountants.com.au   

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