Budget 17/18 – what does it mean for property investors

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Michael Beresford, OpenCorp’s Director of Investment Services and resident finance expert covers the budget. Find out how it impacts property investors.

Relating to investment/housing:

  1. Negative Gearing & Capital Gains Tax – 00m:35sNegative gearing is untouched as well as Capital Gains Tax exemptions untouched.
  2. First Home Buyers – 01m:05sGovernment allowing first home buyers to put up to $30,000 in a Superfund and only attract 15% tax
  3. Downsizers – 02m:05sAged over 64 sell their principle place of residence, each individual can put up to $300k into super that is not taxed.
  4. Developer Overseas Buyers Cap & Vacant Tax – 02m:55sDevelopers are not able to sell more than 50% of their development to overseas buyers & introduced a vacant property tax.
  5. $75bn in Infrastructure Over 10 Years – 03m:40sDue to population growth, the government have allocated $75b over a 10-year period to road, rail and airport infrastructure.
  6. Increase Medicare Levy to 0.5% – 05m:05sIn 2 years the Medicare Levy will increase to 0.5% which will fund the NDIS.
  7. Bank Levy to Generate $6.4bn in New Taxes – 05m:50sNew bank levy instilled on the banks & is forecast to generate $6.4b in new taxes.
  8. Surplus of $7.4bn in 2021 – 05m:30sGovernment working towards being back in surplus by 2021.

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