So what do some of the 2017 – 2018 Budget Changes mean for you?
- The instant asset write off of $20,000 will be extended for a further 12 months to 30 June 2018. This is NOT applicable to buildings or construction or renovations.
- From 2 July 2018 a single means tested Child Care Subsidy will replace the Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance Programme. Use this online calculator to work out how the changes will impact you:
- For the 2018 school year; the Government will extend access to 15 hours per week of preschool education in the year before they begin school.
- From 1 July 2017, first home buyers can contribute up to $15,000 per year and $30,000 in total in voluntary contributions to their superannuation account; that can then be withdrawn for their deposit on their home.
- The Government will encourage people aged 65 and over to downsize from homes that no longer meet their needs and free up housing stock for young families starting out. Older Australians will be provided with greater flexibility to contribute the proceeds of the sale of their home into superannuation.
- University students will contribute an additional 7.5 per cent towards tuition. This will be phased in over four years and can still be met through the Higher Education Loan Program (HELP) scheme so no student will face upfront fees. A new set of HELP repayment thresholds will be introduced from 1 July 2018 and will be indexed by the Consumer Price Index.
- The government will disallow deductions for travel expenses related to owning a residential investment property and target plant and equipment depreciation deductions to those expenses actually incurred by investors
What can you do to prepare for your 2017 Family Day Care Tax Return?