The best news from the 2017 Budget appears to be the Government progressively lifting the freezing of Medicare rebates over the next three years. Here are the impacts as highlighted by Aspiron Consulting Tax Specialists.
Here are the impacts (both good and not so good) for GPs
The good tax news for GPs include:
- Doctors who run their private practice as a business will enjoy the current instant asset write-off threshold of $20,000 (if their aggregated turnover is less than $10 million) for a further 12 months.
- Doctors who earn more than $180,000 will no longer have to pay the 2% temporary budget deficit levy after 1 July 2017.
However, there have been some changes that may have a negative impact on GPs:
- Medicare Levy will increase from 2% to 2.5%, meaning they will pay more tax.
- For taxpayers who are planning on purchasing an investment property, there are new restrictions on depreciation reductions.
- Travel expenses relating to the inspecting, maintaining or collecting rent for a residential property will also cease to be deductible.
Here’s the Budget Brief for more details.[pdf-embedder url=”http://www.alectoaustralia.com/wp-content/uploads/2017/05/2017-Fed-Budget.pdf” title=”2017-fed-budget”]
In addition, some of the bad news measures announced in the 2016 Budget will take effect from 1 July 2017, including:
- The annual concessional contribution cap will be lowered to $25,000 per person.
- The income threshold above which the 30% tax for concessional applies will be lowered to $250,000. This means more high income earners will be required to pay additional tax on their concessional superannuation contributions.
If you have any questions on the budget, please contact Alan Leung from Aspiron Consulting on firstname.lastname@example.org.