First home savers, downsizers and small business are winners in Treasurer Scott Morrison’s second Budget – while taxpayers face an increase in the Medicare levy.
Read and view the full budget analysis below.
Key measures include:
· Individuals aged 65 or older will be able to make non-concessional (after-tax) super contributions of up to $300,000 from 1 July 2018, using proceeds from the sale of the family home.
· First home buyers will be able to save for a deposit from 1 July 2017 by making voluntary concessional and non-concessional super contributions.
· The Medicare levy will increase from 2% to 2.5% pa from 1 July 2019 to fully fund the National Disability Insurance Scheme.
· The ability for small businesses with an annual turnover of $10 million or less to claim an immediate deduction for eligible assets costing less than $20,000 each will be extended for 12 months to 30 June 2018.
· Individuals who lost entitlement to the Pensioner Concession Card as a result of the 1 January 2017 assets test changes will be reissued with the card.
· Eligible pensioners will be entitled to a one-off Energy Assistance Payment of $75 for singles and $125 per couple from 20 June 2017.
· Family Tax Benefit – Part A and B payment rates will not be indexed for two years.
· The maximum Liquid Assets Waiting Period will increase from 13 to 26 weeks.
Download the full analysis 2017 Federal Budget Analysis (pdf)