Although no changes have been made to personal income tax (PIT) rates, for the year commencing 1 July 2017, some taxpayers will pay less tax due to the automatic cessation of the Temporary Budget Repair Levy. See the Taxes on personal income section for more information.
A number of changes were made to modify Australia's superannuation rules, broadly with effect from 1 July 2017, so as to improve sustainability and fairness in the superannuation system in relation to the amounts that might qualify for concessional superannuation treatment.See the Other taxes section for more information.
The Australian government announced in its 2017/18 Federal Budget a series of measures relating to investment in Australian housing. Subject to legislation being passed, these measures may affect a foreign tax resident's entitlement to the capital gains tax (CGT) main residence exemption (from 7:30 pm [AEST] on 9 May 2017) and the CGT discount for investment in affordable housing, and also limit certain deductions for rental properties (from 1 July 2017) (see the Income determination section for more information).
In addition, a new annual vacancy fee is imposed on a foreign owner of Australian residential property that is essentially vacant for at least half of a year. These new rules also require certain foreign owners to report annually to the Commissioner of Taxation in respect of each dwelling, even where there is no liability to the vacancy fee. These obligations apply in relation to an interest in an Australian residential property on which a dwelling is (or will be) situated that was acquired at any time since 7.30pm [AEST] 9 May 2017 (see the Other issues section for more information).
From 1 July 2017, the rate of the non-final withholding tax (WHT) that applies to the gross proceeds of the sale of Australian real property or indirect Australian real property interests (broadly, interests of at least 10% held in an Australian entity, whose majority of assets consist of Australian real property) increased to 12.5%. In addition, the threshold at which withholding is required in respect of Australian real property reduced from 2 million Australian dollars (AUD) to AUD 750,000. See the Tax administration section for more information.