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Federal Budget – What you need to know

Treasurer, Scott Morrison, delivered his second Federal Budget on 9 May 2017 and the second budget of the Turnbull government.   This budget’s focus was on economic growth – investing in infrastructure and improving housing affordability.

We have summarised the Federal Budget essentials for our clients including individuals and small business owners.

Superannuation

With so many changes announced in last year’s Federal Budget applicable from 1 July 2017, there were only a few changes impacting Superannuation this year:

Extending tax relief for merging superannuation funds

An extension of the existing loss relief and asset rollover for merging superannuation funds until 1 July 2020.  

Downsizing Incentive

First Home Super Saver Scheme

Limited Recourse Borrowing Arrangements (LRBAs)

Non-arm’s length arrangements

From 1 July 2018, non-arms length provisions will be amended to ensure expenses that would normally apply in a commercial transaction are included when considering a transaction is on a commercial basis.

Negative Gearing Changes

Business Owners

Extending the immediate $20,000 write-off of depreciable assets for small businesses

Small-medium businesses with a turnover under $10 million have a one-year extension up to 30 June 2018 for an instant asset write-off scheme for capital equipment expenses up to $20,000.  This will provide incentives for many businesses to increase their current capital expenditure spend.

Improving the small business CGT concessions

Medicare Levy

More Information

For all the Federal Budget’s key initiatives, visit the Federal Government budget website at Federal Budget 2017-2018  If you have any questions after reading this please contact your TAG Financial Services adviser on (03) 9886 0800 or via email.

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