"Fairness, Security and Opportunity..." (Treasurer, Scott Morrison)
The Federal Government handed down its 2017-18 budget on Tuesday 9th May. Following are some of the key Budget announcements affecting individual taxpayers, businesses, investors and retirees.
No change to the personal income tax rates or thresholds for the 2017-18 year
Budget deficit levy of 2% for individuals with incomes over $180,000 to end on 30 June 2017
Medicare levy to increase from 2% to 2.5% on 1 July 2019 and similar 0.5% increase to other tax rates that are linked to the personal tax rate, such as the FBT rate
Higher Education HELP debt repayment thresholds to reduce and rates to increase from 1 July 2018
Introduction of the First Home Super Saver Scheme (FHSSS) from 1 July 2017
Extension of the small business $20,000 accelerated depreciation write-off threshold to 30 June 2018, previously 30 June 2017
Commitment to the reduced company tax rate of 27.5% for the 2016-17 year for businesses with turnover below $10 million and below $25 million for the 2017-18 year
New major bank levy of 0.06% from 1 July 2017
Increase in capital gains tax (CGT) discount from 50% to 60% for those investing in affordable housing from 1 January 2018
Limits to depreciation on previously existing assets and travel expense deductions for residential property investments from 1 July 2017
Purchasers of newly constructed residential properties to remit GST directly to the ATO as part of settlement, rather than the developers
Increase to non-concessional contributions cap by $300,000 for retirees aged 65 years and over ($600,000 for a couple) selling their principal residence from 1 July 2018
Reinstatement of Pensioner Concession Cards for those that lost their card following the asset test changes on 1 January 2017
To understand more about these and other Federal Budget announcements and how they might impact your situation, contact John Barrett on 0404 033 464 or via email.
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. You should also obtain a copy of and consider the Product Disclosure Statement for any financial product mentioned before making any decision.