Daniel Hodgson, Hayley Lock, and Caroline Hickson emphasis Budget matters for employers of expatriates.
#Budget2017 might have been a fizzer for some, but if you are a global mobility program manager here are three things you need to know:
From March 2018, large businesses will have:
The Temporary budget repair levy (TBRL) ends on 30 June 2017. Changes to balance sheets are required from 1 July 2017. Fringe Benefits Tax (FBT) rates have already been adjusted back to 47 percent.
Hot tip: the removal of the TBRL will likely offset the increased costs for visas for inbounds.
The Medicare levy will increase from 2 percent to 2.5 percent from 1 July 2019. Changes to balance sheets are required from this date. FBT rates will be adjusted to 47.5 percent from 1 April 2020.
Non-residents and inbound temporary tax residents will be denied access to the capital gains tax (CGT) main residence exemption from 9 May 2017. Existing properties will be grandfathered until 30 June 2019. This exemption has been one of the key considerations influencing the decision to rent out a home while on assignment.
There has also been a reduction of the threshold for withholding tax (12.5 percent) on real property sales by non-residents from $2m to $750k. This will bring more Australian outbound assignees in scope of these provisions.
It’s important to get in front of these changes – communicate quickly and clearly with your key stakeholders and let us know if you need a hand preparing or reviewing comms.