Regulatory changes from 1st July 2017 in Australia – Everyone should know about

Taxation Changes


Budget repair levy not applicable from this financial year

In 2014–15 Federal budget the government introduced a temporary budget repair levy. Individual taxpayers (both resident and non- resident taxpayers) with a taxable income of more than $180,000 per year were needed to pay the levy in 2014–15, 2015–16 and 2016–17 income years. The levy was payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000. From 1st July the levy stands abolished.


Netflix Tax

Until 30th June 2017, things imported by consumers and which are not goods or real property (including digital products and services) were not subject to the GST. In order to maintain the integrity of the tax system and offer a level playing field for domestic suppliers, the Government announced in the 2015–16 Budget that it would extend GST to offshore intangible supplies to Australian consumers with effect from 1 July 2017. But adding the GST to digital downloads, in a move dubbed the “Netflix tax”, The scheme will see overseas firms collect GST from Australian buyers on any digital items, including streaming TV and music services, smartphone apps, digital books, and video games.

CHANGES UNDER THE ‘NETFLIX TAX’

PRICE RISE

Netflix subscriptions

Google Android apps

Steam downloads

Amazon US e-books

SAME PRICE

Apple apps, music, movies

Google Play Music

YouTube Red

Spotify subscriptions

Adobe subscriptions


Minimum Wage Increase


The Fair Work Commission (FWC) has announced a 3.3% increase to minimum wages. The increase applies from the first full pay period starting on or after 1 July 2017.The new national minimum wage will be $694.90 per week or $18.29 per hour.


Superannuation Changes


For more information on superannuation changes from 2017 -18 click the link below

https://www.ato.gov.au/Individuals/Super/Super-changes/

The changes in a nutshell are as follows

Introduction of a transfer balance cap

Concessional superannuation contributions cap reduced

Concessional superannuation contributions tax threshold reduced

Non-concessional contributions cap reduced and criteria introduced

Low Income Superannuation Tax Offset to replace the Low Income Super Contribution

Greater deductibility of personal contributions

More tax offsets for spouse contributions

Changes to earnings tax exemptions

Abolishing the anti-detriment rule

Super Guarantee rate increase changes were previously legislated to increase according to the following timetable


Australia introduces faster visa processing for Indians from 1st July


The Australian High Commission and Australian Department of Immigration and Border Protection have announced that all Indian nationals will be able to lodge Visitor visa applications for Australia online from 1 July 2017. With the applicant’s permission, the online form can be completed by a third party such as a family member here or in Australia, a travel agent, or our contracted visa application centre, VFS.

http://www.border.gov.au/Trav/Visa/Appl/Visitor


New speed limit Victoria: 40km/h at accident scenes


DRIVERS will be forced to slow to 40km/h when passing crashes and incidents where emergency vehicles are stopped on the side of the road or face hefty fines in Victoria.

The new road rule will kick off on July 1 and motorists who do not slow down will face fines between $277 and $793 but will not lose demerit points.


Proposed changes to Australian Citizenship laws


The federal government has proposed changes to three areas of Australian Citizenship which are:  a new residence requirement; a new process for determining an applicant’s integration into the community; and changes to the citizenship test.

Change in residence requirement

Currently, applicants for citizenship need to be resident in Australia for four years, out of which only one year needs to be a permanent resident. Under the proposed changes applicants need to be permanent residents for four years before applying for Australian citizenship.

Testing integration

Applicants will have to show in their written application who well they integrated in Australia through participation in work, Community activities and schooling for children. An English test also will be introduced.

The citizenship test

A new Citizenship test will be introduced with questions which will better assess applicant’s understanding of, and commitment to, shared values and responsibilities.  A person will be able to sit the test a maximum of three times.

Cheating on the test will lead to automatic failure: the implication seems to be it will not be possible to ever sit the test again.


Housing


NSW

FIRST homebuyers in NSW will save more than $34,000 under a suite of housing affordability measures, with stamp duty to be axed for existing and new homes valued up to $650,000. Other changes include abolishing the stamp duty charged on lenders’ mortgage insurance,

The Foreign Investor Surcharge Duty will be doubled from 4 per cent to 8 per cent from July 1, while the annual land tax surcharge on foreign buyers will rise from 0.75 per cent to two per cent a year.

VIC

Stamp duty (land transfer duty) for first-home buyers purchasing a home with a dutiable value of not more than $600,000 has been abolished for contracts entered into from 1 July 2017.First-home buyers buying a home with a dutiable value between $600,001 and $750,000 will be entitled to a concessional rate of duty, calculated on a sliding scale.

The First Home Owner Grant (FHOG) has been increased from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000.


Duty free allowance of Tobacco reduced


importation of tobacco products is regulated by the Department of Immigration and Border Protection. All tobacco imported into Australia must be fully declared and is subject to the payment of duty and GST. This excludes the international traveller’s duty free allowance of 50 cigarettes or 50 grams of cigars or tobacco products, which from 1 July 2017 will be reduced to 25 cigarettes or equivalent tobacco products.

Related Post

Comments

comments

You must be logged in to post a comment Login