2017 Federal Budget - Quick Facts

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The federal budget was delivered by Treasurer Scott Morrison on the 9th of May 2017. Some of the changes are as follows.

 

Property Investors

- From 1st of July you will no longer be able to claim tax deductions for travelling to inspect or maintain your rental property.

- Any property purchases after the 9th of May 2017 will no longer be entitled to claims for depreciation on plant & equipment items included in the purchase price of the property. Claims for depreciation will be limited to outlays actually incurred by investors in residential real estate, from July 1st 2017. 

- The Capital Gains Discount increases from 50% to 60% for sale of properties under "affordable rental housing". However the property needs to be managed via a registered community housing body, be rented by tenants on low to moderate incomes and be held for a minimum of 3 years. 

- For property developers, when selling new property, the purchaser will be required to pay the GST component of the purchase price directly to the ATO at settlement.

 

Individuals

- Tax rates remain unchanged.

- The Medicare Levy increases 0.5% from July 1st 2019.

- From July 1st 2018, any HELP debts will start to be repaid once income exceeds $42,000. Currently repayment commences from $51,957.

 

Superannuation

- From July 1st 2018 additional super contributions can be made (up to $300,000) from the sale of your home. This is only available to those over 65 and the proceeds must come from the sale of your principle place of residence that you have owned for at least 10 years.

 

Small Business

- The $20,000 Instant Asset write off has been extended for another 12 months. Therefore the deduction is also available in the 2017/2018 financial year.

- The Instant Asset write off now includes businesses with a turnover of up to $10 million.

- For those in the courier and cleaning industries the ATO will require annual taxable payment reports to be completed. This will start in the 2018/2019 year.

 

If you have any further questions please contact our office. 

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