2017/18 Federal Budget

The Government handed down the 2017–18 Budget on 9 May 2017, with several proposed changes to tax and superannuation laws. The announced measures in the 2017/18 are listed below:

• Increase in the Medicare levy: NDIS — The government announced that from 1 July 2019, the Medicare levy will increase from 2% to 2.5% to ensure that the National Disability Insurance Scheme is fully funded. 
• Increasing the Medicare levy low-income thresholds — The government announced that the Medicare levy low-income thresholds for singles, families, seniors and pensioners will increase from the 2016/17 income year. 
• Limit plant and equipment depreciation deductions to outlays actually incurred by investors — The government announced that from 1 July 2017, plant and equipment depreciation deductions will be limited to outlays actually incurred by real estate property investors.
• Black Economy Taskforce: prohibition on sales suppression technology and software —The government announced that the manufacture, distribution, possession, use or sale of electronic point of sale (POS), sales suppression technology and software will be prohibited. 
• Improving the integrity of GST on property transactions — The government announced that it will strengthen compliance with the GST law by requiring purchasers of newly constructed residential properties or new subdivisions to remit the GST directly to the ATO as part of settlement. 
• First home super saver scheme — The government announced that from 1 July 2018 individuals will be able to apply to withdraw voluntary contributions made to super after 1 July 2017 for a first home deposit.
• Disallow the deduction of travel expenses for residential rental property —The government announced that from 1 July 2017 all travel deductions relating to inspecting, maintaining, or collecting rent for a rental property will be disallowed. 
• Expanding tax incentives for investments in affordable housing — The government announced that from 1 January 2018, it will provide an additional ten percentage point capital gains tax (CGT) discount for resident individuals who invest in qualifying affordable housing. 
• Extending the immediate deductibility threshold for small business — The government announced an extension to the 2015/16 Budget measure providing an instant asset write-off provision for small business up until 30 June 2018. 
• CGT withholding and indirect Australian real property interests — If you purchases indirect Australian real property interests from a relevant foreign resident vendor, they need to withhold from the purchase price. This applies to contracts entered into from 1 July 2016.

Source:
​Budget 2017-2018
ATO website update - 2017/18 Federal Budget