Federal Budget 2017 overview
The theme for this year's Federal Budget is "Good Debt: Bad Debt". The primary focus accordingly is housing affordability.
Much of the Budget has been dedicated to making housing affordable to Australians. In that regard, the Government plans to establish the National Housing Finance and Investment Corporation (NHFIC) to operate an affordable housing bond aggregator to encourage greater private and institutional investment and provide cheaper and longer-term finance to registered providers of affordable housing.
The Government will settle the final details of the NHFIC following advice from the Affordable Housing Implementation Taskforce, due by mid 2017.
The Budget in summary
- Assisting first home buyers to build a deposit inside superannuation
- Allowing older Australians to contribute downsizing proceeds into superannuation.
- Strengthening the CGT rules for foreign investors
- Charging foreign owners who leave their residential properties vacant
- Increasing CGT discount for investors in affordable housing
- Continuation of small business tax deduction of $20,000
- Medicare Benefits indexation lifted & Medicare levy increased
- Adjustments to negative gearing
- Restoring the Pensioner Concession Card
- Superannuation - integrity of non-arm's length arrangements
- New HELP repayments thresholds & rates introduced
View more detailed information and examples regarding each point above in my published research note '2017 Federal Budget Review' (Morgans clients only).