On Tuesday night the Federal Government handed down the Budget for 2017. As foreshadowed, the Budget contained relatively few surprises with a number of announcements made in the previous weeks.
We have reviewed the Budget and have summarised the most important and relevant aspects for our clients:
Personal income tax
- Temporary Budget Repair Levy still to cease 30 June 2017
- Medicare levy to increase to 2.5 per cent from 1 July 2019
- Disallow certain residential rental property deductions
- Increase in capital gains tax discount to 60 per cent for qualifying affordable housing
Superannuation
- First home super saver scheme to commence 1 July 2017
- Home downsizing superannuation contributions where over age 65
- Integrity of limited recourse borrowing and non-arm’s length arrangements
Business owners
- Limiting access to small business capital gains tax concessions
- Extending the immediate deductibility threshold
Foreign residents
- Lower threshold for withholding tax for residential property disposals
Please click here to read a detailed review of each of the points raised above.
It is worth remembering that the Budget announcements are still only proposals at this stage. We see no immediate actions required, and will discuss anything relevant to once the proposed changes are legislated. In the meantime, if you have any questions please contact us on 9935 0970.