First home savers, downsizers and small business are winners in Treasurer Scott Morrison’s second Budget – while taxpayers face an increase in the Medicare levy.
The key initiatives in this year’s Federal Budget are:
- Individuals aged 65 or older will be able to make non-concessional (after-tax) super contributions of up to $300,000 from 1 July 2018, using proceeds from the sale of the family home.
- First home buyers will be able to save for a deposit from 1 July 2017 by making voluntary concessional and non-concessional super contributions.
- The Medicare levy will increase from 2% to 2.5% pa from 1 July 2019 to fully fund the National Disability Insurance Scheme.
- The ability for small businesses with an annual turnover of $10 million or less to claim an immediate deduction for eligible assets costing less than $20,000 each will be extended for 12 months to 30 June 2018.
- Individuals who lost entitlement to the Pensioner Concession Card as a result of the 1 January 2017 assets test changes will be reissued with the card.
- Eligible pensioners will be entitled to a one-off Energy Assistance Payment of $75 for singles and $125 per couple from 20 June 2017.
- Family Tax Benefit – Part A and B payment rates will not be indexed for two years.
- The maximum Liquid Assets Waiting Period will increase from 13 to 26 weeks.