Budget 17/18 – what does it mean for property investors

Michael Beresford, OpenCorp’s Director of Investment Services and resident finance expert covers the budget. Find out how it impacts property investors.

Relating to investment/housing:

  1. Negative Gearing & Capital Gains Tax – 00m:35sNegative gearing is untouched as well as Capital Gains Tax exemptions untouched.
  2. First Home Buyers – 01m:05sGovernment allowing first home buyers to put up to $30,000 in a Superfund and only attract 15% tax
  3. Downsizers – 02m:05sAged over 64 sell their principle place of residence, each individual can put up to $300k into super that is not taxed.
  4. Developer Overseas Buyers Cap & Vacant Tax – 02m:55sDevelopers are not able to sell more than 50% of their development to overseas buyers & introduced a vacant property tax.
  5. $75bn in Infrastructure Over 10 Years – 03m:40sDue to population growth, the government have allocated $75b over a 10-year period to road, rail and airport infrastructure.
  6. Increase Medicare Levy to 0.5% – 05m:05sIn 2 years the Medicare Levy will increase to 0.5% which will fund the NDIS.
  7. Bank Levy to Generate $6.4bn in New Taxes – 05m:50sNew bank levy instilled on the banks & is forecast to generate $6.4b in new taxes.
  8. Surplus of $7.4bn in 2021 – 05m:30sGovernment working towards being back in surplus by 2021.
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