2016/17 year end - tax changes for individuals

As 30 June 2017 is fast approaching, we have briefly summarised the important tax changes to remember when collating your tax information.

Deductions for plant and equipment depreciation on residential property will only be allowed on actual purchases from 1 July 2017. That is, plant and equipment purchased with the property (ie remaining fixtures) will not be allowed a deduction, generally appearing on a Quantity Surveyor’s report.

For property held before 9 May 2017 (budget night), it is advised that a Quantity Surveyor’s report is prepared for the year ending 30 June 2017. Note: there are no changes to the current Division 43 capital works provisions.

The 2016/17 income year is the final year of the Temporary budget repair levy, which is an additional 2% levy for individuals with taxable income over $180,000.

Following 1 July 2017, the highest marginal rate of taxation is 47% being the 45% marginal rate plus 2% Medicare levy. This also applies for Fringe benefits tax.

Clients who are foreign residents may want to consider the change in capital gains tax rules that will apply from now until 30 June 2019.

For foreign residents who held a main residence (or “absence rule” main residence) at 9 May 2017, the exemption from capital gains tax will be removed after 30 June 2019. It is also worth noting that foreign residents do not get access to the general discount either.

If you would like to discuss these changes with us further, please do not hesitate to contact.
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au

Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au