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Note that these budget announcements are yet to be legislated and may be subject to change. We will keep you up to date on all proposed changes on our website.
The Australian Government has announced it will help first home buyers to build a house deposit inside super through a new First Home Saver Scheme from 1 July 2017. The Scheme will allow first home buyers make voluntary contributions into super for the purpose of buying a house.
What it means for you as an employer
At first glance it might look like this measure won’t affect you as an employer, but if you look closer, it will have some impact on your pay offices because you’ll likely be required to administer a greater volume of salary sacrifice contributions into super.
The Scheme will be administered by the ATO so once you make the payments to your employee’s super account there will be no further impact on your pay office. The ATO will determine the amount of contributions that can be released and will instruct us how to make these payments to your staff.
Other information about the Scheme for your staff
First home buyers will be able to make voluntary contributions of up to $15,000 per year and $30,000 in total, to their super account to buy their first home. Concessional voluntary contributions, which are taxed at 15 per cent along with deemed earnings, can be withdrawn for a deposit. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset and allowed from 1 July 2018. Voluntary non-concessional contributions can be withdrawn tax free.
You can download the Government’s First Home Super Saver Scheme fact sheet here.
The Australian Government has announced it will extend the $20,000 instant asset write-off for an additional 12 months to 30 June 2018 for businesses with a turnover of less than $10 million annually.
What it means for you as a business
If you’re looking to replace or upgrade some of your business assets, you’ll now have extra time to take advantage of this tax write-off.
You can download the full Budget Papers here.
The Australian Government will amend the small business capital gains tax (CGT) concessions to ensure the concessions can only be accessed in relation to assets used in a small business or ownership interests in a small business. This measure will take effect from 1 July 2017.
The concessions will help small business owners by providing relief from CGT on assets related to their business, helping them to re-invest and grow, and contribute to their retirement savings through the sale of the business.
The small business CGT concessions will continue to be available to small business taxpayers with aggregated turnover of less than $2 million or business assets less than $6 million.
In a bid to employ Australian workers first, the Australian Government has announced it will abolish the 457 visa and replace it with a new Temporary Skill Shortage Visa which will have tighter conditions on its use.
If you currently employ staff on 457 visas we recommend you look closely into the merits of employing staff on the new Temporary Skill Shortage Visa because there will be financial implications if you choose to do so.
If you have a turnover of less than $10 million per year you’ll be required to make an upfront payment of $1,200 per visa per year for each employee on a Temporary Skill Shortage Visa. If your business has a turnover of $10 million or more per year you’ll be required to make an upfront payment of $1,800 per visa for each employee on a Temporary Skill Shortage Visa.
Visas will be subject to tighter eligibility requirements, including at least two years of relevant work experience, labour market testing and mandatory criminal history checks.
The Government will provide $9.1 million in 2017-18 to simplify business registration and licensing services across Commonwealth, state and territory governments.
This measure will allow businesses to access registration and licensing services through state and territory government websites, and to be guided through registration and licensing processes.
The Government will redirect $146 million over four years from 2017-18 to facilitate the delivery of innovative and effective support for Indigenous businesses and entrepreneurs.
What it means for our Indigenous businesses
If you’re an Indigenous entrepreneur, you could be eligible for greater assistance through workshops, business planning and training under this measure. It will also provide tailored loan products, including capital assistance, for Indigenous entrepreneurs who want to establish or grow their business.