Once again the FPA was present at the 2017 special stakeholder “Budget Lock-Up”. Here are our insights on some of the expected, and unexpected measures.
- From 1 July 2019, the Medicare levy will be increased to 2.5% to fund the National Disability Insurance Scheme.
- key housing affordability measures include, from 1 July 2018:
- A person aged 65 or over will be able to make a non-concessional contribution to superannuation of up to $300,000 from the proceeds of selling their home.
- First home buyers will be able to withdraw salary sacrificed voluntary contributions to superannuation made from 1 July 2017, along with associated deemed earnings, for a first home deposit.
- enabling Managed Investment Trusts (MITs) to invest in affordable housing. For investors to receive concessional taxation treatment through a MIT, the affordable housing must be available for rent for at least 10 years.
- the introduction of a new one-stop shop for external dispute resolution for financial services and superannuation, replacing the existing ombudsman schemes and the Superannuation Complaints Tribunal.
- A new Major Banks Levy will be introduced requiring large banks with liabilities above $100 billion will incur a new bank levy of 6 basis points.
- extra funding for ASIC to broaden its financial literacy program over the next four years.
- improving the small business capital gains tax concessions and extending the instant asset write-off scheme for small businesses.
- consolidating seven working age payments and allowances into a new JobSeeker Payment.
- changes to the treatment of Family Tax Benefit A and child care rebate.
Our Budget Wrap provides an outline of these and other key measures of interest for financial planners and their clients. As with any legislative change, much will remain unclear until legislation is passed.
FPA Budget Wrap
A brief summary of the Budget announcements that are potentially relevant to you and your clients.