Last night, the Government delivered the 2016-17 Federal Budget, its last before a looming double dissolution election. Superannuation was a key focus of the Budget with the Government’s superannuation package being the most significant changes to superannuation since Peter Costello’s Simpler Super package was announced in the 2006-07 Budget, netting it approximately $2.9 billion over the forward estimate period. Substantial changes were made to contributions, transition to retirement and the retirement phase.
Going forward, the Government is predicting a Budget deficit of $37.1 billion in 2016-17 (2.2% of GDP) with no surplus predicted in the Government's medium term projections but with the Budget deficit reduced to $6.0 billion by 2019-20. As with other recent Budgets, the improvement in the Government’s bottom line has a greater reliance on tax revenues recovering (predicated on a return to 3% per annum GDP) growth rather than spending restraint.
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