Stamp duty and family tax benefit changes for new financial year
With a prime ministerial shuffle late last year, a double-dissolution announcement back in May and then an election night that seemed to go on forever, the start of the new financial year was almost a 'blink and you'll miss it' event.
Now that the fog has cleared, here is a list of the changes we will see this financial year and the proposed changes that will be going to the senate later in the year.
Family tax benefit changes
The Family Tax Benefit Part B will no longer include parents who are part of a couple and whose youngest child is 13 years or older.
The age cut-off for the youngest child prior to the change was 18 years.
Changes to the family tax benefit do not affect single parents, grandparents or great grandparents.
In Victoria and New South Wales, foreign property investors are paying more stamp duty.
The foreign buyer surcharge is 7% in Victoria and 4% in New South Wales. From October 1 foreign property buyers will be paying a 3% stamp duty surcharge in Queensland.
In South Australia, stamp duty concessions for off-the-plan apartments will continue for another year. The $15,500 concession was set to end in June but was extended in the state government's budget.
Small business join the super stream
Small businesses will be required to pay super contributions electronically and also electronically report this information back to the ATO.
While the compliance deadline for the 'SuperStream' system was June 30, the ATO is giving stragglers until October 28 to get ready.
First-home buyer grant increase
In Queensland, first home buyers have benefited from a one-off boost to the First Home Owners' Grant. The grant has been increased from $15,000 to $20,000 for one year only.
New start-up incentives
From July 1, if you invest in an eligible start-up you will receive a 10% non-refundable carry-forward tax offset on investments made through an early stage venture capital limited partnership (ESVCLP).
Minimum wage increase
The Fair Work Commission has increased the minimum wage by 2.4% for 2016-2017. This means an extra $15.80 per week for about 1.8 million workers.
Income tax cuts
The following rates are proposed to apply for the 2016-17 income year from 1 July 2016. These rates don't include the Medicare Levy of 2%.
|Taxable income||Tax on this income|
|0 - $18,200||Nil|
|$18,201 - $37,000||19c for each $1 over $18,200|
|$37,001 - $87,000||$3,572 plus 32.5c for each $1 over $37,000|
|$87,001 - $180,000||$19,822 plus 37c for each $1 over $87,000|
|$180,001 and over||$54,232 plus 45c for each $1 over $180,000|
Small business tax cuts
The government has proposed a reduction in the company tax rate from 28.5% to 27.5% for the 2016-17 income year.
The turnover threshold to qualify for the lower rate will start at $10 million and eventually include all corporate tax entities by 2023-24.
Also from July 1, business with a turnover of less than $10 million will be able to access a range of concessions that are currently only available to business entities with a turnover of less than $2 million.
New tax rules for property sales over $2 million
For property transactions of $2 million-plus, purchaser must withhold 10 per cent of price unless vendor shows a clearance certificate from the ATO.
Mortgage duty abolished
In NSW, mortgage duties are now abolished. Mortgagees will no longer be charged a duty on the amount secured by the mortgage.