There’s so much written about the Federal Budget, but what does it mean for you as an individual? Some significant changes were outlined that will impact families, retirees and business owners – here are the top seven:
• The company tax rate for small businesses with turnover of less than $2 million will be reduced by 1.5%
to 28.5%. These small businesses will also be able to claim an immediate tax deduction for each and every item they purchase up to $20,000.
• Unincorporated small businesses will receive a 5% tax discount;
• Increased childcare subsidies will be available to many lower income young families. The table below explains how this will work.
• Families that don’t vaccinate their kids will miss out on childcare subsidies and family benefits.
• Changes to the pension assets test will be a boost for retirees with less money, however, higher net worth retirees may still qualify for some entitlements.
• It will no longer be possible to claim both the full Government and employer provided parental leave payments;
• Watch out online! You’ll have to pay GST on digital products and services from offshore businesses from 1 July 2017.
• Great news for farmers – expenses for fencing and water facilities will be fully deductible.
The other great news is that negative gearing was untouched in this budget. If you’d like to talk about an investment home loan, give me a call.