2020 Budget Updates: Homeowners & First Home Buyers
The Federal Budget 2020 announcement yesterday had many Aussies on the edge of their seats in anticipation – but what do the changes mean for homeowners?
The numbers coming out of the Bureau of Statistics confirmed the March quarter’s 0.3% decline, meaning Australia’s economy has gone backwards for two consecutive quarters. What this means for us as a nation, is that we’ve entered a recession for the first time in thirty years.
With the economy facing unprecedented pressures thanks to the arrival of Covid-19, the Morrison government are aiming to slow the financial freefall – and ultimately, get Aussies spending again.
Although the Federal Budget is traditionally released in May each year, the announcements were delayed until Tuesday 6 October. In an effort to get Australia’s economy moving, Treasurer Josh Frydenburg has fast tracked tax cuts, relaxed terms and conditions around government grants, and infrastructure upgrades in yesterday’s press release. So what are some key takeaways from the Federal Budget 2020, and what does that mean for homeowners in Queensland?
Federal Budget 2020: Key Takeaways For Homeowners
Like any annual Budget announcement, there’s always winners and losers. The good news is that this time, all you need to do is pay tax in Australia to be better off this year.
Hefty Tax Cuts – While the list is extensive, the winners are low and middle-income single earners earning up to $120,000 a year, as they will be taxed $2745 less than they normally would be. With further cuts being brought forward from their original date of July 1 2022, the government have also announced that the tax breaks will also be backdated from July 1 2020. The concept is to allow more funds to stay in your pockets, to funnel back into the economy.
First Home Buyers Grant Relief – Adding onto the success of the original scheme, an additional 10, 000 First Home Buyers Grants have been added to the pool. The increase on the maximum purchase price has been lifted all around Australia, allowing more first home owners access to acquiring a newly constructed home with as little as 5% for a deposit. Along with keeping the property market intact, it’s also going to benefit trades around the nation.
Less Red Tape For Granny Flats – Building a granny flat for an elderly relative will be cheaper from July 1 2021, as capital gains tax will no longer have to be paid so long as a formal agreement is in place. While it won’t apply to commercial renting arrangements, the relaxation on the relevant legislation will allow Aussies to extend and ultimately add value to their existing home or property.
The JobMaker Scheme – The $74 million JobMaker Scheme is a core component in guiding Australia’s economic recovery, and encompasses a broad range of grants and incentives. Some of these include the introduction of the JobMaker Hiring Credit (incentives for businesses to hire young people aged 18-35), wage subsidies for taking on new apprentices, and significant infrastructure investments to create employment opportuntiies.
How To Reinvest The Federal Budget 2020 Tax Cuts
The tax cuts and relief introduced by the Morrison Government were carefully crafted in an effort to stimulate Australia’s economy – meaning confidence in business, getting consumers spending, and stabilizing the property market.
If a new property is something that you’ve been considering – whether it be as a first home owner or perhaps a secondary investment home – then it may be time to speak to the professionals.
Since their inception in 2012, Madd Loans have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the mortgage process both fun, educational and stress free – and he has a swag of awards to prove it.
An independent operator can be your greatest asset when it comes to navigating loan options, as brokers are there to make you happy – not the banks. To speak to a Brisbane based mortgage professional, please get in touch with the team at Madd Loans today to help turn your financial dreams into reality.