The Federal Budget was handed down last week, with one of the big ticket items being that single parents will be backed to buy their own home with just a 2% deposit. Dubbed the ‘Family Home Guarantee’, the new scheme aims to help single parents enter the housing market. From July, single parents with dependent children will be able to buy a home with a deposit of just 2 per cent with the Government guaranteeing the remaining 18%.
Also,the low and middle income tax offset (LMITO) has been extended for another year, meaning Australians will be $1,080 better off at tax time.
A number of tax incentives have been included in this year’s budget for small and medium (SME) businesses. The corporate tax rate for SME’s will drop from 27.5% to 25% come July 1.
Retirees will be given more flexibility when it comes to their superannuation. Those over the age of 60 will now be allowed to contribute up to $300,000 into superannuation if they downsize their home. Previously retirees needed to be 65 or older to make this contribution.
Note also the $450 per month minimum income threshold for the superannuation guarantee. This means those who earn under that amount will now receive superannuation contributions, whereas previously they did not.
June 30th is fast approaching, so if you haven’t yet lodged last years tax return or previous years for that matter then you need to get your returns lodged.
Give us a call on 3351 6111 with any queries. TaxArana