Some Important Points from the #BUDGET2017

Last night, we had Alex from our office live post some important points throughout the 2017 Federal Budget Release. Whilst she settled in on the couch with bub – armed with her phone and the hashtag #budget2017 – she was able to provide our clients and social media with the below updates:

  • Scott Morrison expects the budget back to balance by 2021;
  • Small Businesses with turnover up to $10 million can continue to write off assets up to $20k until 30 June 2018;
  • Corporate tax rate for “small” businesses reduced to 27.5% from 1 July 2017 (was 28.5%).
  • There is going to be huge investments in new infrastructure projects! Great news for job growth;
  • $1.2 billion expected to be raised from new Foreign Worker levy to contribute to a Skilling Australians Fund;
  • There will be a First Home Super Savings Plan – From 1st July 2017, first home buyers can salary sacrifice into their super funds with earnings to be taxed at 15% to save for their first home. Limit of $30k per person and $15k contributions per year;
  • There will be no changes to negative gearing this year;
  • Australians to pay more tax due to 0.5% increase in Medicare Levy from 2019. The increase is for their decision to fully fund the National Disability Insurance Scheme;
  • Those older than 65 will be able to make non-concessional superannuation contributions of up to $300,000 after selling their home – provided they have lived in it for at least 10 years;
  • HECS Repayment Threshold has been lowered to $42,000.
  • For rental property expense claims, you will be unable to have deductions for travel expenses from 1 July 2017;
  • And for properties bought after today, the Govt will also limit plant and equipment depreciation deductions to only those expenses directly incurred by investors.

It was a MASSIVE night of budget news, to chat about what the 2017 Budget means for you – Contact our office today!

Alex – Out!

 

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