watch this short video by SMH for a quick review.
http://www.smh.com.au/business/federal-budget/federal-budget-2017-live-scott-morrison-to-unveil-turnbull-governments-financial-plan-20170509-gw0kjv.html
Medicare levy increases to 2.5% from 1 June 2019
The instant asset write-off of $20,000 has been extended for another year to 30 June 2018.
Company tax rates for small & medium businesses dropping to 25% within 10 years.
HELP debt repayment thresholds have dropped to $42000 and are indexed to the CPI.
First home super saver scheme – good opportunity for younger people to salary sacrifice up to $15000 into super and then pull funds out later to fund a first home. Withdrawals are taxed at 30%. Need to weigh up tax savings upon withdraw to see if this is of actual benefit.
Persons over 65 can make additional contributions to super on downsizing the family home without the need to satisfy the work test. But this means that the proceeds are not exempt from the Age Pension asset test.
GST applies to the sale of new homes and is remitted to the ATO at the time of settlement. No taxable result changes.
No changes in negative gearing or capital gains tax.
Second-hand rental properties (purchased post budget 9/5/2017) will be unable to claim deductions for plant & equipment (ovens, dishwashers, air conditioners etc) that were acquired with the property.
Any questions contact the team at HA Accounting on 0390880776
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