Last night (9 May 2017) the Treasurer, Mr Scott Morrison, handed down the 2017-18 Federal Budget.
Mr Morrison described the Budget as one “about making the right choices to secure the better days ahead” through a “fair and responsible path back to a balanced budget” based on “the principles of fairness, security and opportunity”. As was the underlying sentiment of the previous year’s Budget, the choice is to “ensure the Government lives within its means” while still having a plan to:
- grow the economy to create more and better paid jobs;
- guarantee the essentials that Australians rely on; and
- reduce cost of living pressures.
Small to Medium Businesses
Corporate & International Businesses
Businesses employing foreign workers will be subject to extra levies as a result of the Federal Budget. Larger corporates will also be subject to further restrictions under the MAAL provisions.
The Government have introduced a significant number of property related changes which seek to reduce pressure on housing affordability. The measures will have a significant impact on property developers, investors and non-resident property owners.
Individuals will be impacted by an increase to the medicare levy, changes to HELP repayment thresholds and various property related measures.
Retirees looking to downsize their main residence are the big winners in this budget with the ability to contribute some of those sale proceeds to superannuation outside of the standard contribution limits. Those saving for a first home also have new superannuation measures which may be of assistance.