What’s on and off the table Now that the Liberal/National Coalition has been returned to Government what are the key tax policies that are now on and off the table?
Property
• You can still negatively gear
• Individuals and trusts will still benefit from the 50% CGT discount for assets held greater than 12 months
• A new scheme for first home buyers may be introduced which allows them to access 95% loan to value ratios
Super and individuals
• Franking credits are still refundable for super funds and individuals
• Personal and corporate tax cuts will proceed as legislated. Tax cuts for low and middle-income earners announced in the Federal Budget may now proceed
• The Budget Repair Levy will not be reinstated so the top marginal tax rate will stay at 45% • You can still claim a tax deduction for any amount you spend on managing your tax affairs
• The non-concessional contributions cap stays at $100,000 and will not be reduced to $75,000
• The threshold for imposing an additional 15% tax on concessional contributions of high income earners will remain at $250,000 and will not be reduced to $200,000
• Catch up concessional contributions are still allowed for individuals with a total superannuation balance of less than $500,000
• You can still claim a tax deduction for your personal super contributions
• Legislated increases in SG contributions up to 12% from 1 July 2025 will proceed
• A SMSF can still use a limited recourse borrowing arrangement to acquire property
• A SMSF will be able to have up to 6 members
• Proposed measures to target multi-nationals and high net worth individuals will not proceed
Family trusts
• There will not be a standard minimum tax rate of 30% imposed on family trust distributions
Small business
• The Australian Investment Guarantee (AIG) will not proceed which was proposed from 1 July 2020 to immediately expense 20% of eligible depreciable assets in the first year of all new investments; and depreciate the balance from the first year.
• The instant asset write-off up to $30,000 until 30 June 2020 will stay; and there are plans for the write-off to be permanent for SMEs. A new measure may allow all businesses regardless of size to immediately deduct 20% of any new eligible assets worth more than $20,000.
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