Here is a quick snapshot of the budget update
– 20,000 immediate write off for small business with a turnover under $10m to be extended until 30/06/2018.
– Medicare Levy increased by 0.5% to fund National Disability scheme (1 July 2019).
– From 01 January 2018 CGT discount will increase to 60% for investments in qualifying affordable housing.
– Ability for first home buyers to salary sacrifice up to $15,000 in a single year each ($30,000 account cap total allowed per person) into their super then withdraw these funds plus earnings to buy a first home. Funds taxed at 15% on the way in and taxed at marginal tax rates (less 30% offset) on the way out. Funds may be withdrawn from 1 July 2018.
– From 01 July 2018 new HELP threshold of $42,000 with 1% repayment rate.
– Bank Levy tax (not to apply to mortgages or $250,000 government guaranteed deposits) and additional powers for regulators will likely impact bank earnings in the short-to-medium term.
– Deduction for travel expenses to inspect rental properties / collect rent removed and equipment depreciation now limited.
– Range of measures targeted at foreign buyers (vacant home tax, removal of CGT exemption, 50% limit on foreign ownership in new developments) may impact demand in certain areas.
– Ability for people who sell their home (if over age 65 and have lived there for at least 10 years) to put up to $300,000 each from the proceeds of their home into super even if they have retired and have reached the $1.6 million pension cap.