As announced on Saturday, the Federal Government has proposed to re-introduce a super surcharge, which was abolished back in 2005.
Unlike the previous surcharge, this will affect high income earners who earn more than $300,000. This will increase the take on their contributions from 15% to 30%. We understand that in calculating the $300,000 it will take into consideration, your taxable income, reportable fringe benefits, and concessional contributions. For a husband and wife couple this has the potential to be a $15k per year tax increase.
It is unclear when this is likely to commence but we will find out more on the 8th May on handing down of the federal budget.
As a small business person it is not unusual for you to exceed the $300,000 threshold, in particular if your are selling a business or drawing out large dividends. This therefore presents an enormous opportunity to plan in advance. So please pre-book a meeting / call to talk with us after 8 May once we have more details to hand, email: email@example.com
Visit our Newcastle Accountants on 134 King Street, Newcastle.