Federal Budget - What is means for you
The Federal Budget was released last night and there are some key changes that will affect first home buyers, investors, small businesses and all tax payers in general.
Key changes include:
- Opportunities for First Home Buyers to enter the market by providing incentives for savings, additional opportunities for land purchases and measures to reduce foreign investors purchasing in developments. First Home Buyers will be able to use their voluntary superannuation contribution to save for a house deposit. Withdrawals will be taxed at a lower rate with the maximum capped at $15,000 p.a and $30,000 in total. Both members of a couple can take advantage of the scheme.
- Small businesses will benefit from the extension of the $20,000 immediate asset write off for another year.
- All tax payers will incur an increase to the medicare Levy from 2% to 2.5%. This will assist in unfreezing the Medicare Benefits Schedule Indexation. If passed, this will come into affect 1 July 2019.
- University students - fees will increase in phases from 2018 to 2021 by 1.8% p.a. The compulsory HELP repayment threshold will be set at $42,000 (down from the current $55,000).
- Negative gearing for investors has not been changed.