In this edition:

  Welcome

  Superannuation

  Small business

  Individuals

Increase in Medicare levy
The Medicare levy will be increased by half a percentage point from 2 percent to 2.5 percent of taxable income. The increase will ensure that the National Disability Insurance Scheme is fully funded.

Other tax rates that are linked to the top personal tax rate, such as the FBT rate, will also be increased.

Current exemptions and relief will remain in place.
From 1 July 2019

Purchasers of new residential properties to remit GST
Purchasers of newly constructed residential properties or new subdivisions will be required to remit the GST directly to the ATO as part of a settlement.
From 1 July 2018

First Home Super Saver Scheme
Individuals will be able to make voluntary contributions of up to $15,000 per year - and $30,000 in total - to their superannuation account to purchase a first home.

Concessional contributions and associated deemed earnings will be taxed at 15 percent. Non-concessional contributions will not be taxed, nor will withdrawals of non-concessional amounts.

These voluntary contributions, along with associated deemed earnings, will be able to be withdrawn for a first home deposit from 1 July 2018.

Withdrawals of concessional contributions and earnings will be taxed at the individual's marginal rate less a 30 percent offset.
From 1 July 2017

Plant and equipment depreciation deductions limited to outlays actually incurred by investors

Owners of a property will not be able to claim deductions for plant and equipment purchased by a precious owner of the property. The acquisition of these items will be reflected in the cost base of the property for CGT purposes.

From 1 July 2017

No deductions for travel expenses to inspect residential rental properties

Deductions for travel expenses related to inspecting, maintaining or collecting rent for a residential property will be disallowed. Costs of engaging third parties for property management services will continue to be deductible.

From 1 July 2017

If you have any questions about how any of these measures impact you or your family, please contact your Goodwin Chivas & Co. representative.