2017 Federal Budget Update

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The Federal Government has now handed down the 2017 Budget.  Whilst there have been a number of changes, we have given you an overview of the main changes affecting business owners.

  • Small Business  ($10M or under turnover)
    • Extension of $20k asset write off.  Will revert back to $1k from 1 July 2018.
  • Medicare Levy
    • Lower threshold is increasing to $21,655 for singles and $36,541 for families from 9 May 2017.
    • Medicare Levy rate will increase to 2.5% in the 2020 Financial Year.
  • Superannuation
    • First Home Owner Super Saver Scheme
      • Can contribute $15k per year and total of $30k to Super from 1 July 2017.
      • Can pull out funds from 1 July 2018 but may be taxed on the withdrawal depending on personal tax rates.
    • Over 65’s can contribute to Super on Sale of Home
      • From 1 July 2018, ability to contribute $300k per person to Super upon sale of private home.
      • Unclear how it will affect aged pension yet
  • GST
    • From 1 July 2018, purchasers of newly constructed residential properties will be required to remit the GST direct to the ATO, rather than to the builder
  • Rental Properties
    • No new Depreciation on existing Assets in house
    • No Travel Allowance to see property
  • ATO
    • Investing heavily in Audit activity of businesses with turnover between $2M-$15M
    • Repayment thresholds will be reduced to $42,000 at 1%, up to $103k at 10%

If you would like further clarification on the above, please feel free to get in touch!

2017 Federal Budget Highlights

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