The Australian Budget 2017-2018 brings in a number of changes that you may see reflected on your payslip.

Salary Sacrifice for First Home Buyers

The new First Homeowners Supersavers Scheme will allow first home buyers to salary sacrifice up to $30,000 (with a maximum of $15,000 in one year) of voluntary pre-tax superannuation contributions towards a deposit for their first home. Just like all other super contributions, these contributions and earnings are taxed at a rate of 15% and withdrawals are taxed at the employee’s marginal rate less 30%. Most first home buyers are likely to be on a 30% marginal tax rate anyway, which means this is effectively tax free. You can start making contributions from 1 July 2017 and withdraw a maximum of $30,000 of contributions plus earnings from 1 July 2018.

Student Debt

From 1 July 2018, those employees with a HELP debt will be required to begin repaying their student loans when they earn over $42,000 rather than the previous threshold of $55,000.

Increase in the Medicare Levy

The Medicare Levy will increase from 2% to 2.5% for singles earning over $21,655 and families earning over $36,541 from 1 July 2019

Budget Repair Levy

From 1 July 2017, those earning more than $180,000 will cease paying the 2% Temporary Budget Repair Levy.

 

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