Budget 2017 – The Medicare Levy is increasing by 0.5% to 2.5%. This is to pay for the NDIS. Doesn’t sound like much but the govt increased the Levy from 1.5% to 2% just a couple of years ago, again to fund the NDIS. Prediction: Medicare Levy at 5% within a decade to pay for NDIS (unless politicians cap their travel and superannuation perks). PS if you earn $80,000 then an increase of 0.5% means you will pay $400 more per year, or if you normally get a tax refund then your refund will be $400 less than it used to be. This starts in the 2020 tax year so don’t get angry yet.
HECS income repayment threshold lowered to $42,000. If you are lucky enough to be earning over $42,000 get ready to start paying back your HECS/HELP debt. The old threshold was $55,874. This starts in the 2019 tax year.
Reduced deductions for rental property owners. From 1 July 2017 travel expenses to inspect your rental property will no longer be claimable. Also new rental property owners won’t be able to claim depreciation on assets that were purchased with the property. This measure will see a huge reduction in the deductions claimed for rental property owners.
Each year the Federal Budget is handed down it takes more and more from the worker. What will next years budget bring?