Federal Budget 2017-18 update
The Federal Government delivered its 2017-18 Budget yesterday evening.
We’re pleased to advise that there were no major announcements concerning existing salary packaging or novated leasing arrangements.
From 1 July 2019, there will be changes that will affect the rate of Fringe Benefits Tax (FBT).
What are the changes?
The Federal Budget contained a measure to increase the Medicare Levy by 0.5% to 2.5% from 1 July 2019 in order to fund the National Disability Insurance Scheme.
This will also increase the FBT rate by 0.5%, to 47.5%, effective from 1 April 2020.
It is important to note that the FBT rate reduced from 49% to 47% from 1 April 2017, so the overall rate remains lower than the previous three FBT years.
What happens next?
There is nothing you need to do. You can continue to package as normal.
We’re here to help
If you have any questions about your salary packaging or novated leasing arrangements, please contact us.