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Federal Budget 2017

How the budget affects your Business.

What are the ATO individual income tax rates for 2017-2018?

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The Government will increase the Medicare levy by half a percentage point from 2.0 to 2.5 percent of taxable income from 1st of July 2019 to make sure the National Disability Insurance Scheme (NDIS) is fully funded.

other tax rates are linked to the top personal tax rate, such as the fringe benefits tax rate, will also be increased.

As an employer, it's important to be using the most recent tax scales to make sure your employees are paying the correct tax rate.

An income earner with a HELP debt will use a different tax table to calculate their payment correctly. MYOB has this covered. The government will be revising the income thresholds for repayment of HELP debt, repayment rates and the indexation of repayment from 1st of July 2018.

​What is the compulsory superannuation guarantee rate?​

The superannuation guarantee rate has not changed from the current 9.5 percent rate. Paying super and staying on top of ATO superannuation guarantee is easy with MYOB accounting software.

​Are there any caps on extra super payments? First home owners take note!!!​

The government is encouraging home ownership for first home buyers by allowing future voluntary contributions to superannuation made from 1 July 2017 to be withdrawn for a first home deposit, along with associated deemed earnings. Under the measure, up to $15,000 per year and $30,000 in total can be contributed, within existing caps.

As previously announced, employees will be able to contribute up to $100,000 a year to top up their superannuation from after-tax income until their superannuation reaches a limit of $1.6 million.

​What is the Skilling Australians Fund levy?​

Following on from the cancellation of the 457 visa, effective from March 2018, businesses that employ foreign workers on certain skilled visas will need to pay a levy that will provide revenue for a new Skilling Australians Fund.

Businesses with turnover of less than $10 million per year will be required to make an upfront payment of $1,200 per visa per year for each employee on a Temporary Skill Shortage visa and make a one-off payment of $3,000 for each employee being sponsored for a permanent Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa.

Businesses with turnover of $10 million or more per year will be required to make an upfront payment of $1,800 per visa year for each employee on a Temporary Skill Shortage visa and make a one-off payment of $5,000 for each employee being sponsored for a permanent Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa.

​Has anything changed with GST payments?​

Small businesses with an Australian turnover of $75,000 or more in a twelve-month period continue to be required to register and charge GST. Are you the $75k pa. border?​

New reforms apply from 1 July 2017 for overseas businesses with an annual turnover of $75,000 or more. These businesses will be required under Australian law to register with the ATO to collect GST on all goods sold, including purchases under the current low-value threshold of $1000. Your up-to-date MYOB software takes care of all your BAS and GST needs.

From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.

​Are there any changes to the Taxable Payments Reporting System (TPRS)? - Are you in the courier & cleaning industries? Take note, the ATO is looking for you!​

The Government will extend the Taxable Payments Reporting System (TPRS) to contractors in the courier and cleaning industries. The measure will take effect from 1 July 2017.

​Has the instant asset tax write-off been extended? - Take advantage of the $20k +GST Small Business write off before 30/6/2018. It may disapear after the date. ​

If you’re a small business owner, the $20,000 instant asset tax write-off, introduced in last year’s budget, is being extended for another year to 30 June 2018, and will be open to businesses with an annual turnover of up to $10 million, up from $2 million.

Further support will be provided for small businesses to expand and create jobs. Access to a number of tax concessions will be provided by increasing the threshold for these concessions to $10 million, up from the current $2 million threshold. These changes will benefit over 90,000 businesses.