Federal Budget – 09 May 2017
The 2017-18 Federal Budget was handed down last night. Practising Tax have allowed me to share with you, their plain-English wrap-up of the announcements that are most likely to affect you and why.
Highlights include:
- Notwithstanding speculation to the contrary, the Temporary Budget Repair Levy (levied at two percent of taxable income in excess of $180,000) will cease on 30 June this year as planned.
- The $20,000 immediate write-off for small businesses is being extended for one year, to 30 June 2018.
- The Medicare levy is being increased from 2% to 2.5%, effective from the 2019-20 income year.
- A number of measures have been announced to reduce the pressure on housing affordability, including:
- an annual charge on foreign owners of underutilised residential property
- various CGT changes for foreign investors, including denial of the main residence exemption
- an option for individuals aged 65 or over to contribute the proceeds of downsizing their home to superannuation
- denial of deductions for expenses related to inspecting, maintaining or collecting rent for a residential investment property
- access to a higher CGT discount of 60% (as compared to the 50% available in other circumstances) for investments in qualifying affordable housing
- the introduction of a first home super saving scheme
The full summary can be accessed here: Budget Newsletter 2017/18 I hope you find it useful and if you have any questions, please don’t hesitate to contact me.
Cheers,
On-the-Ball Business Services
