Our 5 Budget Predictions For 2017
Happy Budget Eve, usually known as Christmas for all those in financial services or for political journalists, but Fairfax management are the Christmas Grinch this year after revealing they are going to slash 125 jobs resulting in a strike this week.
For the budget tomorrow I have a few predictions:
1) The news is not going to be great for students, the HECS (HELP) repayment threshold could reduce from when earnings are $42,000, lower from the current $55,000 threshold.
2) The government will not change CGT or negative gearing, the focus will be on a ‘ghost house tax’ which will target fines on unoccupied properties.
3) Small businesses should be a winner as they have been since the 2016 Federal Budget with the write off of assets under $20,000 for businesses with turnover less than $10 million. I expect this to remain, I also anticipate a long term tax rate reduction proposal for small business with the rate dropping to between 25%-27.5%.
4) There has been significant talk of first home buyers being able to dip into their superannuation as a deposit. This is a disastrous proposal and I do not believe it will be mentioned.
5) For doctors and patients the government have hinted at $2 billion of savings over the next 5 years – I believe the government will plan to change default prescriptions from brand name to generic drugs.
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