The problems that any Australian Government is expected to resolve and the wish list they are supposed to fulfil, is extensive regardless of which party is in power.
This Budget delivers a series of measures to attempt to please as many people as possible. It tackles the issues currently in focus across the Australian community – gaps in healthcare, home ownership, foreign workers, investment and bank accountability to name a few of the pressure points. It also delivers an economic ‘sugar hit’ in the form of $75 billion in infrastructure projects.
Overall the 2017-18 Budget will not offend anyone (except perhaps the banks) and there are plenty of give-aways. The only danger is the level of optimism in the economic projections in a climate of uncertainty. The key measures are outlined below.
- The $20,000* immediate deduction threshold for assets purchased by businesses with an aggregated turnover of under $10 million will be extended.
- Contractors in the courier and cleaning industries will face greater compliance on payments to contractors.
- Access to small business CGT concessions tightened.
- Levy on businesses employing foreign workers.
- Banks slugged with ‘major bank levy’.
- Super concessions for over 65s to downsize their home, allowing a non-concessional contribution of up to $300,000 per member ($600,000 per couple).
- The ability for would-be first home owners to salary sacrifice into super to save a deposit.
- An array of housing affordability measures including: a CGT discount increase to 60% for investments in affordable housing, and Managed investment Trust investment opportunities in affordable housing.
- Deductibility of investment property travel costs to end and restrictions on depreciation deductions.
- A series of restrictions on foreign property investments.
Individuals & Families
- Medicare levy increase to 2.5% from 1 July 2019.
- Medicare low-income threshold increased.
- Some social security recipients will receive help with energy bills to offset rising energy costs.
- Student contributions to the Higher Education Loan Program (HELP) will increase.
- Demerit system introduced for jobseekers.
- $1bn National Housing Infrastructure Facility established to provide financial assistance to local government.
- A $101.5 million Advanced Manufacturing Fund will promote research and capital development for high technology manufacturing businesses.
- A $472.2 million Regional Growth Fund will be established over four years from 2017-18.
- Farm Business Concessional Loans Scheme extended to assist farmers and their partners who have received their full entitlement for the FHA.
- A series of changes to agricultural levies and export charges including bananas, avocados, seed cotton, tea tree oil, thoroughbreds and laying chickens.
SOURCE: Knowledge Shop
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DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.