There are lots of changes in the 2017 budget and we've highlighted some of the key measures that might impact you directly.
Individuals:
- From 1 July 2018 the Medicare levy will increase from 2% to 2.5% of taxable income to fund the National Disability Insurance Scheme. For example, the taxpayer whose taxable income is $80,000 will pay $400 p.a. more tax to cover this change, no matter whether the taxpayer has private health insurance or not.
- Travel expenses related to the rental properties will not be allowed to claim as the deductions.
- New graduates and anyone with an HECS debt will be forced to pay back the debt sooner. Once the taxable income has exceeded $42,000, there will be compulsorily a 1% of the repayment rate, which equals to at least $420 p.a.
Small business:
- The $20,000 instant asset write-off concession will be extended further 12 months to 30 June 2018 for the small business whose annual turnover is less than $10M. After 1 July 2018, it will be reverted to $1,000 limit.
Superannuation:
- From 1 July 2017 individuals will be allowed to salary sacrifice or make a voluntary contribution of up to $30,000 in total to their superannuation and $15,000 limit in a single year from the pre-tax salary. From 1 July 2018 individuals will be able to withdraw these voluntary contributions for a first home deposit.
If you want to discuss how the budget will affect you please don't hesitate to call Caroline on 0422 311 350.