Federal Budget 2017

May 10

The 2017-18 Federal Budget was handed down on May 9th 2017. ATS Partners has prepared a plain-English wrap-up of the announcements that are most likely to affect our clients and why.  There is also an in-depth analysis for those who want to know more.

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

    Click on the below links for either a summary or in-depth review of last nights budget.

Should you have any questions on how the 2017 Federal Budget will impact you, please give your accountant at ATS Partners a call on 02 60564866.

Leave a Comment:

Leave a Comment: