Federal Budget 2017: Tax (individuals)

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June 1, 2022
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Please note that each of these proposals will only become law if it is passed by Parliament.- A 0.5{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} Medicare levy increase from 2019- New threshold for HECS-HELP debt repayments.

A 0.5{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} Medicare levy increase from 2019

From 1 July 2019, the Medicare levy will increase by half a percentage point from 2{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} to 2.5{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} of an individual’s taxable income. The Medicare levy low-income thresholds for singles, families, seniors and pensioners will increase from the 2016–17 financial year.What this could mean for youThe increased levy may also result in increases to many tax rates linked to the top personal tax rate, including fringe benefits tax and excess non-concessional contributions tax. Certain lump sum super payments that attract the levy may also be impacted, such as disability benefits paid to people under preservation age.

New threshold for HECS-HELP debt repayments.

From 1 July 2018, income thresholds for the repayment of HECS-HELP debts will be revised, along with repayment rates and the indexation of repayments threshold.What this could mean for youA new minimum threshold of $42,000 will apply, with a 1{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} repayment rate. A maximum threshold of $119,882 will apply, with a 10{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} repayment rate. Currently, the maximum repayment threshold for the 2017-18 financial year is $103,766 with a repayment rate of 8{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357}.This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.

June 1, 2022

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