Coming out of Budget lockup, here’s a snapshot of the main features of the Australian Federal Budget 2017.
As anticipated, the government released a “Reducing Pressure on Housing Affordability” package, which contains a number of modest measures, with a focus on first home buyers and increasing affordable housing stock for low to moderate income tenants, at the expense of foreign investors and investment property owners. There are no changes to negative gearing or reductions to the CGT discount.
There was nothing further on company tax cuts, but personal taxes will be hit by an increase in Medicare levy from 2 percent to 2.5 percent from 1 July 2019 to fund the NDIS (which partially offsets the roll off of the temporary debt levy).
Major banks are the big losers in this year’s Budget, with a new bank levy applying at an annualised rate of 0.06 percent of liabilities, tax integrity rules for regulatory capital and a number of measures to increase banking competition and strengthen accountability.
For non-banks, there is very little in the Budget by way of tax measures.
Read our two page PDF summary for economic and fiscal analysis and the top five business tax changes.
Read KPMG's detailed analysis of the key decisions and business implications of the 2017 Federal Budget.