2015/2016 Federal Budget announcements at a glance

  • Reduction in company tax rate from 30% to 28.5% (from 1 July 2015)
  • Immediate tax deduction of up to $20,000 for capital expenditure (from 7.30pm 12 May 2015) for small businesses with a turnover of less than $2 million
  • Centrelink Asset Test Rebalanced (from 1 January 2017)
    • Asset Free Area Increased to:
      $250,000 (single homeowner, up from $202,000)
      $275,000 (couple homeowner, up from $286,500)

    • Asset Max. Area Decreased to:
      $547,000 (single homeowner, down from $775,500)
      $823,000 (couple homeowner, down from $1,151,500)

  • Removal of Double Dipping from Parental Pay- Employer entitlements to be exhausted prior to commencement of Paid Parental Leave (up to 18 weeks @ national minimum wage)
  • Cap of $5,000 on Salary Sacrificed Meal and Entertainment benefits – (from 1 April 2016)
  • Car Related Expense Calculations reduced to 2 methods only – Cents per km and Logbook
  • Single means tested Child Care Subsidy introduced from 1 July 2017
  • Alignment of Means Testing for Aged Care irrespective of how Accommodation Costs are paid i.e: From 1 January 2016 the exemption of rental income under the aged care means test for residents who are renting out their former home (and paying part of their accommodation payments via a periodical payment) will be removed.