Budget Update 2017

Budget Update 2017

The Balancing Act

The problems that any Australian Government is expected to resolve and the wish list they are supposed to fulfil , is extensive regardless of which party is in power. As author John Lydgate wrote:

“You can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time.”

This Budget delivers a series of measures to attempt to please as many people as possible. It tackles the issues currently in focus across the Australian community – gaps in healthcare, first home ownership, foreign workers, investment and bank accountability to name a few of the pressure points. It also delivers an economic ‘sugar hit’ in the form of $75 billion in infrastructure projects. Key measures include:

Business

  • Extension of the $20,000 immediate deduction until 30 June 2018
  • Contractors in the courier and cleaning industries face greater compliance
  • Access to small business CGT concessions tightened
  • Banks slugged with ‘major bank levy’

Superannuation

  • Super concessions for over 65s to downsize – up to $300,000 per member
  • The ability for would-be first home owners to salary sacrifice into super to save a deposit

Investors

  • An array of housing affordability measures including: a CGT discount increase to 60% for investments in affordable housing, and Managed investment Trust investment opportunities in affordable housing
  • Deductibility of investment property travel costs to end and restrictions on depreciation deductions
  • A series of restrictions on foreign property investments

Individuals & Families

  • Medicare levy increase to 2.5% from 1 July 2019
  • Help with energy bills for some social security recipients
  • Demerit system for job seekers

Overall the 2017-18 Budget will not offend anyone (except perhaps the banks) and there are plenty of give-aways. The only danger is the level of optimism in the economic projections in a climate of uncertainty.

For further detail view the NTAA’s Budget Update Financial Planning Association – Budget Wrap 2017 and SMSF Association – Budget Update 2017-18

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Why your SMSF’s ‘rule book’ may be broken (and how to fix it)

Why your SMSF’s ‘rule book’ may be broken (and how to fix it)

by Hugo Furzer

As you probably know, every SMSF must have a corresponding Trust Deed. Think of it as the rule book every Trustee and Members of the SMSF must follow. And the rules cover pretty much every aspect of the SMSF’s operation, including such things as:

  • the powers and limitations of what the Trustee can do with SMSF assets
  • when and how members must apply to access their benefits
  • how members can contribute to the fund
  • how death benefit nominations are put in place.

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Why Budget Night might be a MayDay call for transition to retirement pensions

Why Budget Night might be a MayDay call for transition to retirement pensions

55 and over – Act NOW to protect your Super

Everyone loves a good rumour and with budget night less than a month away – due to be delivered on 3rd May – there are many going around. With Australia’s population aging and the baby boomers now at retirement age, it is suspected that the government may look to superannuation, contributions tax, and transition- to-retirement schemes (TTRs). Moreover, it is rumoured that TTRs may be attacked in the May budget. This means if you were 55 or over on 1 July 2015 you may need to act now.

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Tax Planning 2015

Tax Planning 2015

It’s Tax Planning Time. Take control of your 2015 tax year,  avoid unpleasant tax surprises, and make a move toward better tax & business decisions. Plan NOW before the end of the financial year.
Click here to view the first of a series of tax planning alerts to help you think about what you can do to make your 2015 tax year different. With some small measures and a little planning you could:
  • Defer tax
  • Minimise tax
  • Manage your tax cash flows & change your whole approach to the “T” word

Don’t let tax get the better of you in 2015!

Need Help? Our team are ready with a tax planning process, whether you’re in business or an individual, we can provide:
  1. Projections of your taxable to income to 30 June
  2. Estimates of tax payable pre-planning
  3. Tax deferral & minimisation strategies
  4. Estimates of tax payable post-planning
  5. A 2015 tax report & action plan
  6. Peace of mind
Contact us with any questions you may have or to book your Tax Planning session now.

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