Federal Budget 2016 – Review

Budget 2016 – Review

The government is seeking to elevate this year's budget to a long term 'economic plan' that will support Australia’s transition into an advanced and diverse economy. The path towards fiscal sustainability, however, is proving difficult with the government still forecasting deficits up to 2019-20.

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Business will benefit in the long term by lower company tax rates, although access to the reduced rates will not flow through to our larger companies for many years. Multinational businesses will also need to deal with the additional scrutiny from the Australian Taxation Office that will no doubt arise as part of the government's agenda to combat profit shifting.

Transparency reporting in all its guises is here to stay. How a business proposes to respond requires careful consideration.

Key budget decisions

  • Expenditure reductions: in education and training, health and social services as well as a public sector efficiency dividend.
  • Retirement income: superannuation concessions are pared back for higher income earners, with improved access to superannuation for those on lower incomes. The tax policy focus now shifts to the pension phase of superannuation where benefits are now being capped.
  • Personal taxes: changes to the marginal tax rate threshold for individuals earning greater than $80,000, with negative gearing being retained.
  • Business taxes: a staged reduction in corporate income tax rates and the expansion of smaller business tax benefits, which will be funded by new tax integrity measures focused on multinational businesses.


Translations

2016年度联邦政府财政预算报告 (Chinese Translation) [PDF 2.4MB]

2016年連邦予算案概要 (Japanese Translation) [PDF 1.6MB]

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Federal Budget

Federal Budget

KPMG's review of the business implications of the 2016 Federal Budget.

Tax Reform

Tax Reform

KPMG is providing active analysis and insight to contribute to the reform process. Discover our latest thinking through our videos and publications.

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