Federal Budget 2017

NEW FOREIGN WORKER LEVY

The Government intends to charge a levy on businesses that employ foreign workers. Under the plan, businesses would pay a new one-off and annual levy for each foreign worker as follows:

• Small business: One-off payment of $3,000 with an annual payment of $1,200.
• Larger business: One-off payment of $5,000 with an annual payment of $1,800.

FIRST HOME SUPER SAVER SCHEME

The Government plans to allow first home buyers to use superannuation to help them to save a deposit faster. From 1 July 2017, the plan is to allow a person to make voluntary contributions to super of up to $15,000 a year, with a maximum overall contribution of $30,000. Voluntary contributions include salary sacrifice arrangements and personal (after-tax) contributions.

From 1 July 2018, these contributions and deemed investment earnings could be withdrawn for a first home deposit. Withdrawals of concessional contributions and deemed earnings would be taxed at an individual’s marginal tax rate less a 30% tax offset.

CHILD CARE SUBSIDY

From 2 July 2018, the Child Care Subsidy will provide more support for the families who need it the most. The single simplified, means-tested Child Care Subsidy will replace the Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance Programme.

The Child Care Subsidy will ensure families on low to middle incomes of $185,710 or less (in 2017-2018 terms) who need to use more child care will not face an annual cap. An annual cap of $10,000 will apply to families earning more than $185,710 (in 2017-2018 terms). From 2 July 2018, the new Child Care Subsidy will provide more support for families who need it the most.