There are a few changes that haven’t had much media attention, but will increase the tax you pay. Please read on.
No longer able to claim deductions for depreciation of items that you don’t actually pay for. Previously you could claim depreciation for the value of items included in your property purchase. Exsting depreciation claims are grandfathered. (From 9 May 2017)
No deduction for travel to inspect, maintain, etc your rental property! (From 1 July 2017)
Foreign investors no longer eligible for the main residence CGT exemption. (From 9 May 2017)
Foreign investors with vacant property (at least 6 months) will be charged at least $5,000 per year. (From 9 May 2017)
If you buy a property for more than $750,000 then you must get an ATO clearance certificate from the seller declaring that they are not a foreign resident. If you do not then you will have to withhold 12.5% of the price from the seller and pay to the ATO. Previously the threshold was $2mil. (From 1 July 2017)
Family Tax Benefit Part A reduced by $28 per fortnight for each child that does not meet immunisation requirements.
No change to income tax rates and thresholds.
Increased Medicare Levy Thresholds (From 1 July 2017)
Medicare Levy increased by 0.5% to be 2.5% (From 1 July 2019)
The $20,000 immediate deduction for plant & equipment is extended until 30 June 2018. It was previously to end on 30 June 2017.
Extension of the Taxable Payments Reporting system to contractors in the courier and cleaning industries. If your business pays couriers or cleaners then you must report all payments to the ATO each year in July. (From 1 July 2018)
FIRST HOME BUYERS
Ability to salary sacrifice into superannuation up to $15,000 per year, and $30,000 in total. The contributions and associated earnings will be held separately wihtin your superannuation fund and able to be withdrawn after 1 July 2018 to fund the purchase of your first home. When withdrawn they are taxed at your marginal tax rate, less a 30% tax offset. (From 1 July 2017)
Persons aged over 65 can make a non concessional contribution into superannuation of up to $300,000 from the sale of their home. This is in addition to the current contribution limits. (From 1 July 2018)
Purchasers of new residential properties and sub divisions will be required to remit the GST directly to the ATO, as part of settlement. Previously the seller was required to remit the GST. (From 1 July 2018)
The HELP Repayment Threshold reduces to $42,000, with the initial payment rate being 1%. This rises to 10% once your income reaches $119,882. Currently the threshold is $55,874 and 4%. (From 1 July 2018)