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.
Read the full analysis 2017 Federal Budget Analysis (pdf)
View the 2017 Federal Budget with Gemma Dale (Director Investor Behaviour)