Federal Budget, Superannuation and Your Business
The 2017/18 Federal Budget was recently released and there were a few announcements that may impact both your business and your employees. ACA corporate partner Cbus provides an update.
Eligibility for instant tax write-offs
Introduced in 2016 and expanded in 2017, the Government now plans to continue the instant tax offset throughout 2017/18. Businesses that turn over less than $10 million each year will be able to immediately write-off expenditure up to $20,000.
New foreign worker levy
The Government intends to charge a levy on businesses that employ foreign workers. Under the plan, businesses would pay a new one-off and annual levy for each foreign worker as follows:
- Small business: One-off payment of $3,000 with an annual payment of $1,200.
- Larger business: One-off payment of $5,000 with an annual payment of $1,800.
First home super saver scheme
The Government plans to allow first home buyers to use superannuation to help them to save a deposit faster.
From 1 July 2017, the plan is to allow a person to make voluntary contributions to super of up to $15,000 a year, with a maximum overall contribution of $30,000. Voluntary contributions include salary sacrifice arrangements and personal (after-tax) contributions. From 1 July 2018, these contributions and deemed investment earnings could be withdrawn for a first home deposit. Withdrawals of concessional contributions and deemed earnings would be taxed at an individual’s marginal tax rate less a 30% tax offset.
Concessional contribution cap
For the 2017/2018 financial year, a single concessional cap of $25,000 applies for all age groups. This was announced in the 2016/17 budget and is still going ahead.
Please read our 1 July Factsheet for details on the upcoming changes to superannuation.
This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper.com.au for a copy. Cbus Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.