What did I miss? 1 July changes
July 1 saw the start of many of the Government's budgets measures – Find out what is changing for you.
This year's Federal Budget announced many measures that would be landing for 1 July 2017. As the new financial year gets underway, here is what you should be aware of:
- GST applies to digital products & services imported by consumers
- Small business $20k instant asset write-off extended until 30 June 2018
- Company tax rate reduction to 27.5% for entities with an aggregated turnover of less than $25m (companies with a turnover of less than $10m have been subject to this tax rate since 1 July 2016).
- Major Bank Levy introduced
- 2% temporary debt tax removed from high income earners
- Plant & equipment deductions limited for residential property investors (not yet legislated)
- Residential property investors no longer able to claim travel expenses (not yet legislated)
First home saver scheme begins (not yet legislated)
- Cap on concessional contributions (before tax) reduces to $25,000 for everyone.
- Cap on non-concessional contributions (after tax) reduces to $100,000.
- $1.6 million transfer balance cap limits how much money a member can transfer into or hold in a tax-free pension account. Excess amounts are subject to a transfer balance tax.
- Threshold to access the tax offset for contributions to a spouse increased to $37,000 (partial offset available up to $40,000).
- Threshold for low income super tax offset increased to $37,000.
- The threshold at which high-income earners pay Division 293 tax on their concessionally taxed superannuation contributions reduced to $250,000 (from 300,000).
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.