The 2018 Federal Budget is here. As a result of Scott Morrison ’s 2017 Federal Budget, The National Tax & Accountants Association (NTAA) have announced the following tax and revenue changes:
2018 Federal Budget Recap:
Personal income tax measures
- Limiting plant and equipment depreciation deductions to outlays actually incurred by investors – for residential investment properties acquired from Budget night on 9 May 2017
- No deduction for travel expenses for residential rental properties
Medicare levy-related changes
- Increasing the Medicare levy low-income thresholds
- Increase in the Medicare levy from 1 July 2019
Measures affecting small businesses
- Extending the $20,000 immediate write-off for small business
- New integrity measure for the small business CGT concessions
Superannuation
- First home superannuation saver scheme (FHSSS)
- Limited recourse borrowing arrangements (‘LRBAs’)
- Individuals aged 65 or over able to contribute the proceeds of downsizing into superannuation
- Extending tax relief for merging superannuation funds
- Integrity of non- arm’s length arrangements
Measures affecting the GST regime
- Improving the integrity of GST on property transactions
- Aligning the treatment of digital currency (e.g., bitcoin) with money
Measures affecting foreign investors
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Measures applying from Budget Night on 9 May 2017 (a) CGT changes for foreign investors
- Charge on foreign owners of underutilized residential property
- Restricting foreign ownership in new developments to 50%
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Measures applying from 1 July 2017
- Changes to the Foreign Resident CGT Withholding (‘FRCGW’) regime
- Streamlining and enhancing the foreign investment framework
Encouraging investment into affordable housing
- Increased CGT discount for resident individuals investing in qualifying affordable housing
- Affordable housing through Managed Investment Trusts (‘MITs’)
Black economy task force
- Extension of the taxable payments reporting system to contractors in the courier and cleaning industries
- One year extension of funding for ATO audit activities
- Prohibition on sales suppression technology and software
For further information, you can contact one of your specialists. For the full report please visit NTAA’s 2017/18 Budget Summary
