On Tuesday evening, Treasurer Scott Morrison presented the Federal Budget, referred to by the Government as the ‘Economic Plan’ designed to drive ‘Jobs and Growth’.
Since then the Team at BMG have been busy reviewing the Budget technical reports to ensure we understand the impact of the proposed changes on our clients. It certainly has been the hot topic in the office.
It is pleasing to see the Government recognising the contribution that small business makes to the economy and in particular the extension of the tax concessions available to small businesses with annual turnover of up to $10m.
Whilst we understand that Governments will continue to adjust superannuation legislation, the imposition of a ‘lifetime limit’ on non-concessional (after tax) contributions into superannuation as of Budget night and taking into account amounts contributed from July 2007 is concerning. This measure alone will generate unnecessary uncertainty for people who are in the midst of their retirement plans.