2017 Budget (6 things to consider)
Incentive for older Australians to downsize their home:
From 1 July 2018, older homeowners, aged 65 years and over, will be able to make an after-tax contribution to their super of up to $300,000 using the proceeds from the sale of their family home. The house must be their principle residence and must have been held for at least 10 years.
First Home Super Saver Scheme
From 1 July 2017, those looking to buy their first home will be able to make voluntary contributions into their superannuation of up to $15,000 per financial year ($30,000 in total) to save for their deposit. They will be able to withdraw these contributions plus their deemed earnings from 1 July 2018.
Small businesses claiming expenditure deductions on tax
Small businesses with a turnover up to $10 million will be able to claim a tax deduction of expenditure up to $20,000 until 1 July 2018. The Government remains committed to cutting the company tax rate to 25% for all business regardless of size by 2026.
Medicare Levy cost increases
The Medicare levy will be increased by 0.5% to 2.5% from 1 July 2019. This increase to the levy will assist in funding the National Disability Scheme in full, designed to support Australian with permanent and significant disability.
University degree may cost more
Fees on university degrees will be increased by 7.5% to be phased in over four years at a rate of 1.8% each year starting from 2018. These fees can still be covered through the Higher Education Loan Program scheme. There will also be changes to the threshold when the loans need to start to be repaid. This income level at which repayments must start will be lowered from the current level of $54,869 to $42,000.
Changes to childcare
Previous childcare benefits and rebates will be replaced with a single means-tested Child Care Subsidy from July 2018. There will no longer be an annual cap on rebates for families with an income of $185,710 or less. Families with an income between $185,710 and $350,000 will have childcare subsidy rebates capped at $10,000 with wealthier families unable to claim subsidies once combined income exceeds $350,000.