The Federal 2017-18 Budget has delivered a fiscal plan with bosting tax law changes that will affect business as well as families. If you are a business owner, make sure you become acquainted with these changes before completing your 2017 tax return.
Family Tax Benefit
Some of the changes affecting families include changes to payments of child care rebates and a stricter means test for Family Tax Benefit. From July 2018, there will be a deduction of 30 cents coming off the Family Tax Family for every dollar a family earns above $94,316. Families with household incomes below $185,710 will be no longer be subjected to an annual cap for child care payments. For those households with incomes over $185,710 but under $350,000 a year, the cap for child care will increase to $10,000, whereas child care subsidies will be cut off for families earning more the $350,000.
In terms of income tax, the Budget delivered little change. Here is a brief summary of what you should expect to pay in tax:
- Nil tax for income up to $18,200
- 19c for every $1 above $18,200 and under $37,000
- $3572 and 32% for every $1 above $37,001 and under $87,000
- $19,822 and 37c for every $1 above $87,001 and under $180,000
- $54,547 and 45c for every $1 above $180,000 and above.
Changes to business tax
Small businesses seem to be the main recipients of good news in this Budget round. Some of this changes include:
- Business with assets of up to $20,000 will benefit, thanks to the extension of the instant tax write-off for another 12 months. From 1st July 2018, the instant tax write-off reverts back to $1000.
- The $20,000 instant tax write-off has been extended to companies turning over up to $10,000,000 per year.
- State and territory government will receive $300 million in funding to reduce red tape
- Manufacturing and scientific research will receive $100 million funding injection
- Establishment of a new national skills fund to train and support apprentices
- An extension to the crowdsource equity framework to include proprietary companies
- Scholarships and study hubs for students in regional Australia.
Changes to tax law will also see increased penalties for businesses and individual that breach Australian Consumer Law and more rigorous rules relating to capital gains tax concessions for small businesses. In addition, businesses that hire people on temporary work visas will pay an extra $1,800 per year in additional levies.
A Master of Laws (Business Law) can help bring you up to speed with emerging business law trends and develop the skills to make informed business decisions. To learn more, get in touch with a Student Enrolment Advisor on 1300 589 882.