THE 2017/18 FEDERAL BUDGET
What as that???? and New GST on overseas purchases
A flawed fiddle is probably the best was we would describe last week’s Budget. We’ll leave it at that. There is very little impacting on anyone before 30 June 2017. But we warned – a whole lot of changes to superannuation starting on 1st July 2017. If you haven’t seen your financial advisor yet, you may need to before 30 June 2017 – read on at this link if you wish to. Guaranteed no fiddles past this point.
From 1st July 2017
A lot of fiddly things will happen. Worthy of mention
- You can’t claim travel expenses relating to a rental property.
- You (and possibly your partner or wife) can, salary sacrifice up to $15,000 p.a into super, with a cap of $30,000, if you have never owned a property and intend to be a first home owner.
New GST
- Small business (turnover up to $10.0m) can still claim for $20,000 – purchases up to 30 June 2018 and get a full write off.
- Yes, it’s finally here. Goods purchased overseas with a value of under $1,000, will attract GST. So get your order in before 1st July 2017. Every dollar saved is another dollar in your pocket.
From 1st July 2018
More fiddly things
- Purchase a new residential property after this date and you will need to send the GST, which is part of the price, direct to the ATO.
- Loads of stuff, about older people selling their homes and downsizing. Just hold back on this one – it really is quite mad
- Businesses in the “cleaning” or “couriers” industries will need to report payments to contractors to the Tax Office. Currently only applies to the building industry.
- HELP fees go up but don’t panic yet – it may not get through Parliament. If it does, you are up for 1% if your Taxable Income is $42,000 and it goes up from there.
From 1st July 2019
Another tax
- Medicare Levy moves from 2.00% to 2.5% of your taxable income
All of the above needs to passed into law and some of it may not make it. But if you have any questions, call us and we’ll do our best to answer them.
From the AVDCPA Team
NOTE: The information above is, of necessity, general in nature. It should not be relied upon. For more targeted advice, please contact our office or your super/finance consultant or ASK us to direct you to one of our network of experts. We do not accept commissions from third parties or other parties in relation to referrals.