2017-18 Federal Budget announced at 7:30pm 9 May 2017

Changes to the plant and equipment depreciation deductions for residential investment properties from 1 July 2017:
1. Plant and equipment forming part of residential investment properties as of 9 May 2017 (including contracts already entered into at 7:30PM (AEST) on 9 May 2017) will continue to give rise to deductions for depreciation until either the investor no longer owns the asset, or the asset reaches the end of its effective life.
2. Investors who purchase plant and equipment for their residential investment property after 9 May 2017 will be able to claim a deduction over the effective life of the asset. However, subsequent owners of a property will be unable to claim deductions for plant and equipment purchased by a previous owner of that property. Acquisitions of existing plant and equipment items will be reflected in the cost base for CGT purposes for subsequent investors.
3. Commercial, industrial and other non-residential properties are not affected.
4. Capital works deductions (Division 43) are not affected. This means you will still be able to claim depreciation on the structure of the building provided it was built after the 16th of September 1987.
No deduction for travel expenses for residential rental properties from 1 July 2017.

From 1 Jul 2019, the Government will increase the Medicare levy from 2% to 2.5% of taxable income.

The small business turnover threshold is $10 million (previously $2 million). This means more businesses have access to a range of tax concessions. However, there are limitations, for example the threshold increase does not apply to CGT concessions.
The company tax rate is 27.5% for businesses under the increased small business turnover threshold of $10 million.
The income tax offset is 8% (to a limit of $1,000) for individuals that have an aggregated turnover of less than $5 million.
Extension of the $20,000 immediate write-off for small business; under current law, the $20,000 immediate write-off ends on 30 June 2017. However, the Government has proposed to extend the concession by 12 months to 30 June 2018 for businesses with an aggregated annual turnover less than $10 million.

First home superannuation saver scheme; Voluntary superannuation contributions of up to $15,000 per year, and $30,000 in total, can be contributed by first homebuyers from 1 July 2017.
The contribution must be within existing concessional and non-concessional caps. Concessional contributions are taxed at 15% in the fund and earnings on contributions are taxed at 15% in the fund.

The Government will extend the taxable payments reporting system (‘TPRS’) to contractors in the courier and cleaning industries with effect from 1 July 2018.
The TPRS is a transparency measure and already operates in the building and construction industry, where it has resulted in improved contractor compliance. Under the TPRS, businesses are required to report payments they make to contractors (individual and total for the year) to the ATO.
This measure brings payments to contractors in the courier and cleaning industries into line with wages, which are reported to the ATO. Businesses in these industries will need to ensure that they collect information from 1 July 2018, with the first annual report required in August 2019.

The Government will act to prohibit the manufacture, distribution, possession, use or sale of electronic point of sale (‘POS’) sales suppression technology and software. The prohibition will have effect from the date of Royal Assent of the enabling legislation.
Sales suppression technology and software allow businesses to understate their incomes by untraceably deleting selected transactions from electronic records in POS equipment. Income earned from these transactions and tax owing from this income is not reported to the ATO.

The Government will revise the income thresholds for repayment of HELP debt, repayment rates and the indexation of repayment thresholds from 1 July 2018. A new minimum threshold of $42,000 will be established with a 1% repayment rate and a maximum threshold of $119,882 with a 10% repayment rate.
By way of background, for 2017/18, the minimum threshold is $55,874 and the minimum repayment rate is 4%. The maximum threshold for 2017/18 is $103,766 with an 8% repayment rate.
The Government will revise the income thresholds for repayment of HELP debt, repayment rates and the indexation of repayment thresholds from 1 July 2018. A new minimum threshold of $42,000 will be established with a 1% repayment rate and a maximum threshold of $119,882 with a 10% repayment rate.

Businesses that employ foreign workers on certain skilled visas will be required to pay a levy that will provide revenue for a new Skilling Australians Fund from March 2018.
Businesses with turnover of less than $10 million per year will be required to make an upfront payment of $1200 per visa per year for each employee on a Temporary Skill Shortage visa and make a one-off payment of $3000 for each employee being sponsored for a permanent Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa.
Businesses with turnover of $10 million or more per year will be required to make an upfront payment of $1800 per visa per year for each employee on a Temporary Skill Shortage visa and make a one-off payment of $5000 for each employee being sponsored for a permanent Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa.