FED­ERAL 2017

Highfields' Own - - Real Estate - BY MORT­GAGE CHOICE

The Fed­eral Gov­ern­ment has un­veiled its 2017-18 na­tional bud­get, with first time buy­ers and small busi­ness own­ers the big win­ners, and for­eign work­ers, Aus­tralia’s ma­jor banks and mid­dle to high in­come earn­ers the big­gest losers.

Last year, the Fed­eral Gov­ern­ment’s na­tional bud­get gave us the usual show­bag of fringe-based changes that seemed to af­fect few peo­ple. This year how­ever, the story was a lit­tle dif­fer­ent. Ac­cord­ing to trea­surer Scott Mor­ri­son, this year’s fed­eral bud­get was hon­est.

“This is an hon­est bud­get: it does not pre­tend to do things with money we do not have,” Mr Mor­ri­son said. “This is a bud­get and a plan that can be sup­ported.” And while some mem­bers of the com­mu­nity will likely sup­port the Gov­ern­ment’s 2017-18 bud­get, oth­ers — namely higher in­come earn­ers and for­eign work­ers — may find it hard to do so.

Be­low are some of the high­lights from the 2017-18 fed­eral bud­get:

Prop­erty in­vestors

As promised, neg­a­tive gear­ing was largely kept off the agenda. But while there were no ma­te­rial changes to this in­vest­ment pol­icy, the trea­surer made it clear that cer­tain tax ad­van­tages given to these prop­erty in­vestors would be re­stricted. Neg­a­tively geared land­lords will no longer be able to claim tax de­duc­tions for travel ex­penses re­lated to own­ing and rent­ing an in­vest­ment prop­erty. In ad­di­tion, the rules around de­pre­ci­a­tion de­duc­tions for plant and equip­ment items have been tight­ened. As a re­sult, in­vestors will only be able to claim de­duc­tions on plant and equip­ment items (such as wash­ing ma­chines and ceil­ing fans) that they ac­tu­ally pur­chased. Mean­while, in­vestors look­ing to pur­chase af­ford­able hous­ing will be re­warded with var­i­ous tax in­cen­tives.

Hous­ing and cost of liv­ing changes

In a bid to un­lock even more prop­erty and cre­ate more sup­ply for po­ten­tial buy­ers, the gov­ern­ment also said it would fo­cus on

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