Federal budget 2017/17Yesterday we posted an article on the likely effects of the Federal Budget from the SMSF perspective.

Today we publish a list of the broader areas in which major changes were announced. Naturally, there is a lot more detail behind each bullet point, so if you are interested in finding out more, please don’t hesitate to ask us.

It’s important to note that many of the announcements are yet to be legislated, so it’s vital to seek professional advice before implementing any changes to your strategy based on these topics.

The key announcements are in the areas of:

Taxation

  • Major bank levy
  • Increase in Medicare Levy
  • Indexation of Medicare levy thresholds
  • Lower thresholds for HELP debt repayment
  • Expanding tax incentives for investments in affordable housing
  • Disallow certain deductions for residential rental property
  • Small Business depreciation
  • Improving the small business capital gains tax concessions
  • Capital gains tax changes for foreign investors

Superannuation

  • Contributing the proceeds of downsizing to superannuation for older Australians
  • First home super saver scheme
  • Integrity of limited recourse borrowing arrangements
  • Integrity of non-arm’s length arrangements

Social security

  • Family Day Care
  • Child Care Subsidy – upper income threshold
  • Jobseekers
  • Family Tax Benefit Part A & Part B
  • Energy Assistance Payment
  • Pensioner Concession Card – reinstatement
  • Residency requirements for Pensioners
  • Liquid Assets Waiting Period – increasing the waiting period

Other announcements

  • Affordable housing through Managed Investment Trusts
  • Annual charge on foreign owners of underutilized residential property

If you would like to know more about any of the topics mentioned here, please contact us.