What Are the Proposed Changes in the 2017 Budget?

TL;DR

The 2017 budget proposes significant changes, including allowing downsizers to contribute up to $300,000 each to superannuation, and enabling first home buyers to salary sacrifice up to $30,000 into superannuation for deposits. Additionally, a new banking levy will raise $6.2 billion, the Medicare levy will increase by 0.5%, and measures to improve housing affordability are introduced.

Transcript

g'day and welcome to this week's video well it's budget week and we thought we'd better do a video on some of the proposed changes that will lay down on Tuesday night please remember that they are only proposed and they're not legislated at this point in time first of all huge superannuation for people that are downsizing from their larger family h... Read More

Key Insights

• 🤕 Proposed changes allow downsizers to boost their retirement savings by contributing to superannuation without age or work test restrictions.
• 👪 First home buyers can now salary sacrifice into superannuation, making it easier to save for a deposit.
• 🤨 The new banking levy aims to raise funds from major banks, but concerns exist regarding the potential burden on customers.
• 😘 The Medicare levy increase supports the National Disability Insurance Scheme and raises thresholds for low-income earners.
• 🤯 The budget introduces measures to make housing more affordable, including investment schemes for lower-cost housing and taxes on unutilized rental properties owned by foreigners.
• 🥺 Capital gains tax changes for foreigners may lead to increased property sales to benefit from exemptions.
• 🫗 Energy assistance payments will be provided to eligible individuals, and the liquid assets waiting period for welfare recipients will increase.

Questions & Answers

Q: How does the proposed change in downsizer contributions to superannuation work?

Individuals who downsize their homes can contribute up to $300,000 each into their superannuation accounts, allowing them to boost their retirement savings without age or work test restrictions.

Q: What are the benefits of the proposed changes for first home buyers?

Under the proposed laws, first home buyers can now salary sacrifice up to $30,000 per year into superannuation, helping them save for a house deposit. Couples can contribute a maximum of $60,000, accumulating wealth in a concessionary tax area.

Q: What is the purpose of the new banking levy?

The banking levy aims to raise $6.2 billion by imposing a 0.06% tax on liabilities of major banks. However, there are concerns that the cost may be passed on to customers.

Q: How will the increase in the Medicare levy benefit the National Disability Insurance Scheme?

The Medicare levy will rise by 0.5%, providing additional funds for the National Disability Insurance Scheme. Alongside this, the thresholds for low-income earners to start paying Medicare will also increase.

Summary & Key Takeaways

• Proposed changes allow individuals downsizing their homes to contribute up to $300,000 each into superannuation for retirement, regardless of age or work test.

• First home buyers can now salary sacrifice up to $30,000 per year into superannuation to save for a deposit, with a maximum of $60,000 for couples.

• A new banking levy aims to generate $6.2 billion over time, raising concerns of banks passing the cost on to customers.

• The Medicare levy will increase by 0.5% to fund the National Disability Insurance Scheme, and income thresholds for Medicare payments will also rise.