Federal Budget 2017–18 update
5/10/2017 11:47:51 AM
The Federal Government delivered its 2017-18 Budget yesterday evening.
We’re pleased to advise that there were no major announcements concerning existing salary packaging or novated leasing arrangements.
From 1 July 2019, there will be changes that will affect the rate of Fringe Benefits Tax (FBT).
What are the changes?
The Federal Budget contained a measure to increase the Medicare Levy by 0.5% to 2.5% from 1 July 2019 in order to fund the National Disability Insurance Scheme.
This will also increase the FBT rate by 0.5%, to 47.5%, effective from 1 April 2020.
It is important to note that the FBT rate reduced from 49% to 47% from 1 April 2017, so the overall rate remains lower than the previous three FBT years.
First Home Super Saver Scheme
The Federal Budget contained a measure to amend superannuation law to allow first home buyers to withdraw future voluntary contributions to superannuation for a first home deposit, referred to as the First Home Super Saver Scheme.
At this stage, we expect the proposed measure will be managed by superannuation funds and will not be related to workplace benefits. If you have questions about the Scheme, please contact your super fund provider.
What happens next?
There is nothing you need to do. You can continue to package as normal.
We’re here to help
If you have any questions about your salary packaging or novated leasing arrangements, please contact us.