The federal government has delivered its latest annual budget. First Home Super Savers Scheme From 1 July 2017, first home buyers will be able to save for a deposit by salary sacrificing into their superannuation account over and above their compulsory superannuation contribution (within the existing $25,000 concessional super cap). Savers can use their existing super account and decide how much of their income they want to put aside to save for their first home deposit. Contributions will be limited to $15,000 per person per year, to a maximum of $30,000. Both members of a couple can take advantage of the scheme. Contributions can be made from 1 July 2017, and withdrawals from 1 July 2018.
Changes to the Medicare Levy
Another notable change that will impact salary packaging is the proposed increase in the Medicare Levy from 2% to 2.5% to ensure the full funding of the National Disability Insurance Scheme (NDIS). Effective 1 April 2019, this is likely to lead to an increase in the FBT rate, expected to apply from 1 April 2020. This may impact the FBT exemption and rebate annual caps and the $5,000 Entertainment Benefits cap.
Changes to HECS/HELP debt repayment
Also influencing salary packaging is a proposal that will see the income level at which HECS/HELP debt repayments commence reduced from $55,000 (including reportable fringe benefits and salary packaged superannuation) to $42,000, effective 1 July 2019.