How to Save Money on Home Improvements

For most people, buying a home represents the biggest and most expensive thing they will ever purchase. As with any asset, when you make such a financial commitment to something, it makes sense to ensure it remains intact. When it comes to our homes that will usually mean ensuring we invest in home improvements from time to time. While we may invest in home improvements out of necessity, we may also do so because we want to increase the value of our home, perhaps with an eye on selling it later, or to enhance our lifestyles.

Home improvements can often prove costly. How can we save money on them?

Do What You Can Yourself

Many simple home improvement jobs, such as painting interior rooms, and even some bigger jobs such as refitting a bathroom or external maintenance, can be done by yourself. This means you will only pay for any materials you need, rather than for materials and the cost of paying someone to do the job. When safety issues may be involved, such as with electricals, you should always look to work with professionals, but think about the things that you can do yourself before calling in a contractor.
For some jobs, you may be able to start projects yourself and then only get a professional involved when the work becomes more difficult or beyond your own capabilities. However, ensure you pre-plan this and discuss with a contractor beforehand. Avoid only calling them up if you try to do something yourself and it all goes wrong.

Get Several Quotes

When you do decide you need a professional to do the job, be sure to get several quotes so you know you’re getting the best deal. It is also worth asking friends and family members for their own recommendations, so you know you are getting a trustworthy contractor coming to work in and on your home.

Buy Materials Yourself

Even if you find a recommended and trustworthy contractor, it may still be cheaper to buy the materials yourself, and you have the added bonus of having checked their quality so you’re happy with what is being used. Check with contractors before you hire them that they are happy for you to provide the materials yourself. Most will understand that you’re looking for the work to be as affordable as possible and not have a problem with this.
For an added benefit, if you’re planning a home improvement project far in advance, look to buy materials when trade stores have discounts or sales promotions taking place.

Hire Tools Rather Than Buying Them

If you are doing any work yourself, and only need certain tools to use once, perhaps even for only a couple of hours, it makes more sense to hire rather than to buy them. Workers who rent out tools will also be able to help you choose the one you need and give you safety tips and advice for efficient use, which you won’t always get from making a purchase, particularly if you don’t read the manual or speak to someone at the store you buy it from.
If you would like to buy something to possibly use again, then look at local sales and even online at sites like eBay to see where you can buy good as new tools at a reduced price. You will find many people who were once in your situation and are looking to sell having used their tools only once or twice, but happy to take whatever they can to sell them.

Keep and Store Old Materials

When you next repaint a room in your home, and have half a tin of paint left at the end, keep it. Whether you decide to paint another room the same colour, or simply have one eye on needing to refresh the room in a few years, being able to use the remainder of the paint will prove very useful and save you money.
Both small and large cuts of wood, particularly more expensive hardwoods, should be kept too, while it is always useful to have a box of screws, nails, and other small accessories that you may need to use at various times.

Buy Unclaimed Paint

Colloquially known as ‘oops’ paint, paint that has been mixed incorrectly, or that customers have ordered in a specific colour but never collected from the store, is often available at generous discounts. Another option is to find recycling outlets where people can take old or unused paint, and then find out whether they sell the paint or have passed it onto someone else to sell. Again, this will be available at a fraction of the store price, and maybe even free.

How to Save Money on Home Improvements

Follow these tips when planning your future home improvement projects and you may find yourself able to save money.


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to Pay off Credit Card Debt

A March 2015 report from Moneysmart estimated Australian credit card debt to stand at $33billion.
While the average debt in the same report was cited as being $3,300 per cardholder, there are sure to be many Australians whose credit card debt is way above the average, with others well below it, or even holding credit cards that they never use.

Defining Credit Card Debts

Defining your credit card debts is easy; simply take all of the debt you currently owe on credit cards and on store cards and add it up to discover your total credit card debt.
While this may give you a figure that leaves you taken aback, your balances are merely what you owe without considering interest.
It might be the case that your true level of credit card debt is far higher, and you may ultimately end up paying a lot more in repayments and interest, particularly if you’re not able to pay much more than the minimum every month.

Why Credit Card Debts Matter

Credit card debts are significant for a number of reasons. Firstly, they may have a personal impact on your life.
From a financial perspective, your credit card debts may also be a hugely influential factor on your credit report and for your credit score.
Not only can creditors see what types of credit you can currently access, they can also view your credit limit and repayment history. If your credit card debts are so high that you are struggling to meet your repayment obligations, or you have already missed some payments, this will be visible and will negatively affect your credit score.
While some people maintain a particular balance on credit cards and are able to keep up with repayments, for other people, credit card debts can become overbearing and start to affect their lives.
There are several options for people looking to pay off their credit card debts.

‘From a financial perspective, your credit card debts may also be a hugely influential factor on your credit report and for your credit score.”

First, Stop Spending!

It may sound an obvious piece of advice, but it is essential to stop spending on credit cards before you can even begin to deal with the debts you have on them.
If you feel that might be easier said than done, then you’re probably not alone.
When you don’t feel you have the discipline to stop spending while still having the credit cards in your pocket, what are the options available to you?

• Cut the card up so you cannot use it.
• Explain to a friend or family member what you’re planning, and ask them to keep hold of the card for you.
• Place the card in a bag or box filled with water, and then put it all in the freezer.

Granted, some of those might seem like extreme lengths to go to, yet they may be necessary if you’re serious about paying off your credit card debts.
Once you have stopped spending you can then start to explore the options for paying off your credit card debts.

Carry on What You’re Doing

If you have stopped spending on your credit cards, it means you’re no longer growing your balance. Depending on how much you owe, you might be able to bring your debts down quickly just by continuing to pay towards your balance each month.

Pay More

One of the big problems many face with their credit card debts is that they only pay the minimum payment each month. This in turn leads to interest continuing to build up and means that it will take far longer to repay the balance.
The Moneysmart article we referred to earlier cites the following example:

• On a credit card debt of $4,400, only making the minimum payments each month means it would take 31 years to repay the debt in full, and pay nearly $15,000 in interest alone.
• In contrast, by paying $216 a month the credit card debt would be cleared in two years.

Even if you can only commit an extra $50 – $100 a month to paying your credit card debts, this can make a big difference both to the time it will take to clear the balance as well as the interest you will pay.
By continuing to pay only the minimum payment, you are likely doing little more than servicing the interest, which is why clearing the balance will take so long.

Speak to Your Creditors

If you have already reached the point where you’ve missed payments or you are struggling to meet your obligations, then it might be time to speak to your creditors and come to a repayment arrangement.
It may be a good strategy to look at what you can afford to repay per month and then spread this across the various credit card debts you hold. You could look to commit the largest sum of money to the card with the highest balance or interest rate and look to pay this off first. When speaking to your creditors you may also be able to arrange a freeze on your interest so you do not incur any additional charges.

Consider a Debt Consolidation Loan

If you can feel your credit card debts creeping up on you, but you have so far managed to keep up with the repayments, it might be worth considering a debt consolidation loan.
It is advisable to look at this option at the earliest opportunity, as missing payments may damage your credit score and reduce the likelihood of you being successful when applying for a loan.
Someone with numerous credit card debts may be able to use a personal debt consolidation loan to reduce their repayments to one regular outgoing, and also relieve themselves of the stress of dealing with several creditors at a time.
If you take out a debt consolidation loan they can pay off your credit card debts right away, so you can focus on fixing your finances and paying your fixed repayment sum to us.

“If you can feel your credit card debts creeping up on you, but you have so far managed to keep up with the repayments, it might be worth considering a debt consolidation loan.”

Paying Off Your Credit Card Debts

You have several options available when it comes to paying off your credit card debts, but the first step should always be to stop spending on your credit cards and to take a different outlook to personal financial responsibility.
Once you are able to do this you will have a much clearer picture of the best option you have for paying off these debts.



What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

Financial Tips for Starting a Family

Starting a family is an exciting time in anyone’s life. As exciting as it may be, raising a family is also expensive, with a 2014 study from the University of Canberra  and AMP stating the cost of raising two children is $812,000 over 18 years for a middle-income family.

Whether an impending new arrival was planned or not, having a financial plan and framework in place is going to be essential. Following these financial tips will help you to to live the life you want while providing for your child now and in later life, while also encouraging you to continue to save for yourself.

Start Saving Early

Whether you save money for your children in your own savings account, wait until your first child is born before opening a savings account in their name, or open an account for them to be held in trust, it is never too early to start saving for your child’s future.
While we all have hopes, aspirations, and plans for our children, it is impossible to know what will happen when they are 18 years old, what they will be interested in, and how they are going to approach life. If you have savings it will allow a degree of flexibility when your children reach adulthood, whether they are preparing to head off to University, are planning to travel and see some of the world, or are looking to move out and start a new job.

Involve Friends and Family in Everything

Close friends and family members will naturally want to be involved with your children. If they offer financial support, you could share the details of the savings account you have set up for your children so friends and family can make payments directly into it. This also means that on special occasions they can pay money straight into the child’s savings account too.
As well as offering direct financial support, family and friends will also offer to buy various products for your child. Use the money this saves you wisely, either to help you pay bills or to save for the future, either for yourself or for your children.

Don’t Be Afraid of Hand Me Downs

Car seats, strollers, and cot beds are all the type of thing you will want to buy brand new for your child. Other things, such as toys and clothes, might only be suitable for your child for a very short time as they grow quickly and their interests change.
It can be frustrating for parents spending money repeatedly on these two things in particular, so look to save money by taking advantage of any offers of hand me downs from those close to you. You might also want to consider shopping for baby clothes on websites like eBay, or finding out if there is a local ‘swap meet’ where you can exchange the things you no longer need for something more useful.
This can save you a small fortune, particularly in the early years of a child’s life.

Consider Your Budget and Lifestyle Changes

Depending on your income and personal circumstances, you may need to make some changes to your budget to cater for having children. Having children means you generally have less disposable income, but even then you may have opportunities to save You should also think about the essential spending you are going to incur when having children, so you can consider this a fixed and regular cost within your personal budget plan.
Don’t assume that certain aspects of your spending will be able to carry on as previously. If you do, you may suddenly find yourself unable to pay bills and other essentials.

Look After Yourself

As well as providing for your children, it is important to have things in place so you can look after yourself, but also provide a safety net for your children for the future.
Some things you can consider are:

• If you are not a homeowner, continue saving towards a deposit for a house. Owning your own home not only provides you with an asset but is also something you can pass onto your children when they are older or when you die.
• Remember to continue your own retirement planning. Having children makes it easy to put planning your own financial future on the backburner, but you should continue to think about planning for your future after retirement

When it comes to your own retirement planning, if you start doing this later in your children’s life you may find you need to save more leaving less available for your children later in life..

Financial Tips for Starting a Family

Considering these financial tips could help you maintain your lifestyle while providing for your children. Plan everything carefully so you can focus on raising your family and not your finances when you need to.


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

How to break your debt cycle

One of the worst things about being trapped in a debt cycle is you might not even realise you’re stuck there. Credit cards and other personal financial products are such a part of modern life that buying on a credit card, paying the balance when you receive your salary, and repeat seems normal to millions of people.

Realising that this debt cycle is a dangerous thing is hugely empowering, and can give you the inspiration to do something about it.

Here are some steps you can take to help you break yours.

Understand how it happens

There are numerous ways you can fall into the debt cycle, but at its most basic point it usually starts with spending beyond your means, and often buying things you want rather than you need, and using credit to do this. You then see your access to credit as an extension of your lifestyle, but as your debt grows and you’re paying more to clear a credit card in full or part each month, credit can quickly start to seem essential for your day-to-day existence.

Commit Yourself

Breaking the debt cycle is tough, especially if you’re familiar with the feeling of relying on credit for essentials such as food or for paying bills. Committing yourself to achieving this is the first and often the most important step.
Once you’ve committed, it is time to start taking positive action.

“Even the most committed person can struggle to break the debt cycle, and still having the problematic credit card in your pocket all the time isn’t exactly going to help”

Cutting down Spending

As the debt cycle is reliant on you continuing to add more debt on a regular basis, the biggest difference you can make is to cut right down on what you spend. If you want to cut to the heart of the cycle immediately, look to stop spending on anything but essentials.
You might think that’s a big ask at first, but start writing down everything you spend your money on and you’ll fast realise there are plenty of ways you can save.

Utilise Friends or Family Members

Even the most committed person can struggle to break the debt cycle, and still having the problematic credit card in your pocket all the time isn’t exactly going to help. Remove the temptation by giving your credit card to a friend or family member. If you’re accessing credit through online lenders then look to change your password to something you won’t remember, or even close your account completely if you don’t have any outstanding borrowings.

Use Your Savings to Pay the Debt Quicker

Controlling or stopping your spending is a big step, and you can break and escape the debt cycle even quicker by starting to use the savings you’ll now make to pay towards your debt. You’ll also save yourself money by reducing the interest you’ll pay on any outstanding balance.
As you reduce your debt, you will find that maintaining your current spending levels is easy, which should prove a valuable incentive against you falling back into the debt cycle. Once you’ve broken it and you’re out, stay out, and don’t repeat the habits that took you into it in the first place.



What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

At Constancy Wealth Management we are always looking for new innovative ways to do things. Challenge what you already know and think outside the box as do many of our clients. I would like to share with you some very creative ways to get extra money you can use to pay off debt or avoid debt completely.

Start Mystery Shopping

Although mystery shopping won’t generate thousands of dollars of income for you, it’s something you can get paid for while doing the things you normally would, and is a fun way to generate a small additional income. The great thing about mystery shopping is that anyone can do it; you’re usually just judging a location based on the quality of the service and won’t need in depth knowledge of the catering or retail industries to be accepted for jobs.

Have a Clear Out

Now, going through the attic, cellar, and that rarely opened cupboard and just throwing things away won’t bring you any money, but selling the things you have in there could make you enough to make a sizeable dent in your debt. Sometimes, you might even find a hidden treasure or something of significant value that you’d forgot you even owned.
You can sell your old unwanted items on eBay, or if you prefer the personal approach and want to have even more fun, then simply have a garage and yard sale.
If you have plenty of other possessions around the house that you know in your heart you don’t really need, and that you wouldn’t miss if they were gone, then consider adding those in, too.

“Make your property work even harder for you by renting out your space in other ways”

Make Your Home a Superstar

Is your home sizeable, and does it have some notable or unique characteristics? If so, you might be able to rent out your home for filming! Many homeowners are looking to jump on this trend given the sums of money that can be earned, but only the very best properties are likely to receive an offer to rent the space.
While the most likely scenario is that your home will earn you relatively modest sums of money through ‘starring’ in a scene or two, there’s always the chance that a massive production could be coming to town and want your home to be the centrepiece.

Other Options for Renting Out Your Space

Make your property work even harder for you by renting out your space in other ways.
Renting out a spare room might be the idea that first jumps to mind, but if you don’t want a lodger you could alternatively consider renting it out as an office. You could allow your garden to be hired for children’s parties, or even rent out your drive as a parking space. The latter idea is brilliant if there are lots of commuters driving into a busy location near you or if you live near a stadium or arena that hosts highly attended events on a regular basis.
Paying off your debts is serious business, but it doesn’t have to be dull. Get creative with generating your additional income and have some fun while doing it!










What you need to know





Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.






This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

Personal Finance Frequently Asked Questions








Today getting finance is easier than it ever has been. One of the benefits of seeking financial advice before taking out a loan is that you can avoid many common pitfalls. We will be creating future blogs about how to best manage personal debt but this blog is not about that. Today I will answer some of the more frequently asked questions from clients who have already decided they want to apply for Personal Finance.







Q) Do I have to go into a bank branch to sign application forms?
A) No there is no requirement to sign the application forms at a branch. We can do this in person or e-mail you the required documentation as long as we have photographic identification.



Q) Can I get finance to pay out existing high interest rate debt?
A) Yes we can structure a loan to pay directly to any other credit provider.



Q) Can you finance private sales or do you need to purchase from a business such as a car dealership?
A) Yes you can finance private sales either straight to their account or yours in certain circumstances.




Q) What sort of deposit do I need?
A) You can get personal finance with no deposit. If you do have a deposit however you may be able to get a better deal.



Q) Can I borrow for business use?
A) Yes you can although not all credit providers off this service.



Q) How long does it take to get finance approval?
A) There are lenders who can provide same day approval and funds within two hours of all documentation being received.



Q) How long does it take to complete an application?
A) If we have all the information we require we can complete an application in around 10-15 minutes.



Q) What purposes can you borrow money for?
A) There are extensive lists of acceptable loan purposes including car purchase, other vehicle purchase, car repairs, auto upgrades, travel, home improvements, household furnishings, educational expenses, debt consolidation, medical and cosmetic surgery, dental surgery, mortgage cost funding, vehicle deposit funding and sporting equipment .








For a complimentary consultation please contact us through our website www.constancywealthmanagement.com.au


What you need to know

Constancy Wealth Management is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.


This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information

2016-17 Federal Budget Report highlights

What it means for you

 

On Tuesday 3 May the Treasurer, Scott Morrison, released the Government's 2016/17 Budget - the Government’s economic plan for Australia’s transition from mining boom to a more diverse economy.

 

The budget contained a number of important changes to the superannuation system, including retirement income streams and tax changes. As some of these changes are significant, it is important that you discuss your particular situation with your financial adviser and how these changes may affect you.

 

Note: These measures are proposals only and will need passage of legislation to become law.

 

The key superannuation changes announced include:

• Reducing the concessional contributions cap
• New lifetime non-concessional contributions cap
• $1.6 million cap on the amount that can be transferred into a tax-free retirement income stream
• Increasing flexibility for contributions made after age 65
• Change to the taxation of transition to retirement income streams

Superannuation

Concessional contribution changes

 

From 1 July 2017:

 

• The concessional contributions cap will reduce to $25,000 per year (down from $30,000 per year for those under age 50 and $35,000 per year for those aged 50 and above). This will also apply to members of defined benefit schemes.  

 

• Individuals with superannuation balances of $500,000 or less will be able to accrue unused concessional contributions cap amounts (up to 5 years) and carry them forward for use in later years.

 

• Individuals with income and concessional contributions above $250,000 per year (reduced from $300,000 per year) will have to pay an additional tax of up to 15 percent on concessional contributions, which is in addition to contribution tax of 15 percent paid. Similar measures will apply to high earning members of defined benefit funds.
   
• All individuals up to the age of 75, regardless of their employment status, will be able to claim an income tax deduction for personal superannuation contributions made in an income year.  These amounts will count towards the concessional contributions cap and will be subject to contributions tax.
   

Non-concessional contributions

 

From 7:30 pm (AEST) on 3 May 2016, non-concessional contributions will be capped at a lifetime amount of $500,000 (indexed). The lifetime cap will replace the existing annual non-concessional contributions caps ($180,000 per annum and the $540,000 ‘bring-forward’ rule) and will include non-concessional contributions made since 1 July 2007. 

 

If the new lifetime cap has been exceeded prior to 7:30 pm (AEST) on 3 May 2016, those amounts can be retained in super however no further non-concessional contributions can be made. Where the lifetime cap is exceeded after this date, any excess will need to be withdrawn, or penalty arrangements will apply.

 

Similar measures will apply to members of defined benefit and constitutionally protected funds with excess non concessional amounts (plus earnings) being deducted from non-concessional contributions within any accumulation account they have.

 

Retirement income streams 

 

From 1 July 2017:

 

• The government will limit the amount of superannuation that can be transferred to tax-free retirement income streams to $1.6 million. Individuals with more than $1.6 million in tax-free retirement income streams on 1 July 2017 will be required to either withdraw the excess amount or transfer the excess back to an accumulation account. However, where the retirement income stream exceeds $1.6 million because of future earnings, the excess will not be required to be withdrawn or transferred.

 

• Existing and new transition to retirement (TTR) pensions will have investment earnings taxed at up to 15 percent, in line with superannuation in accumulation accounts.
   
• Remove barriers to innovation in retirement income stream products by extending the tax exemption on earnings to products such as deferred lifetime annuities and group self annuitisation products. This will allow product providers to offer new retirement income products that can help individuals achieve a broader range of retirement goals.

 

Other superannuation measures:

 

From 1 July 2017:

 

• Individuals aged 65 to 74 will no longer need to meet a work test to make a personal contribution or to receive a spouse contribution.

 

• The spouse contribution tax offset of up to $540 will be available to individuals contributing to their spouse’s superannuation fund who can earn up to $37,000 per annum (up from $10,800 per annum).

 

• A Low Income Superannuation Tax Offset (LISTO) of up to $500 will be available to those with adjusted taxable income below $37,000 per annum.

 

• Superannuation funds will no longer be able to pay an anti-detriment payment to an eligible dependant after the death of a member.
   
• The Government will enshrine into legislation the objective of superannuation which is ’to provide income in retirement to substitute or supplement the Age Pension’. 

 

Taxation

Increase to Medicare levy low-income thresholds

 

From the 2015-16 financial year, the Medicare levy low-income threshold will be indexed for individuals and families to take into account movements in the CPI.

 

	Medicare Levy threshold (2015-16)	Medicare Levy threshold (2014-15)
Single	$21,335	$20,896
Single eligible for SAPTO	$33,738	$33,044
Couple	$36,001	$35,261
Couple eligible for SAPTO	$46,966	$46,000
Additional threshold for each dependent child	$3,306	$3,238

 

Changing the income tax thresholds

 

From 1 July 2016, the income threshold where the 37% marginal tax rate starts to apply will increase from $80,001 to $87,001. The income threshold and marginal tax rates from 1 July 2016 are as follows:

 

Taxable income threshold	Tax payable (excluding Medicare levy)	% tax on excess
$18,200	Nil	19.0%
$37,000	$3,572	32.5%
$87,000	$19,822	37.0%
$180,000	$54,232	47.0%

 

Temporary Budget repair levy

 

The three year Temporary Budget Repair Levy on high income individuals will cease from 1 July 2017. Up until then the temporary levy will continue to apply at a rate of two percent on individuals’ taxable income in excess of $180,000 per annum. This will mean that the top marginal tax rate will reduce from 47% to 45% (excluding Medicare Levy) from 1 July 2017.

 

Negative gearing

 

The Government has announced officially that they will not remove or limit negative gearing because it would increase the tax burden on Australians trying to invest for their future.

 

Extending the existing freeze on the Medicare Levy Surcharge and Private Health Insurance Rebate thresholds

 

From 1 July 2018, the Medicare Levy Surcharge and Private Health Insurance Rebate thresholds will remain paused for three more years.  

 

Company tax changes

 

From 1 July 2016:

 

• The small business entity turnover threshold will increase to $10 million (from $2 million) for an incorporated entity, allowing eligible businesses to access the lower company tax rate of 27.5%.
   
• The Government will progressively reduce the company tax rate to 25 per cent over 10 years.