The Federal Budget 2020-21
What does it mean for you?
First home buyers incentivised.
Normally a home buyer needs to save a deposit totalling 20 percent of the purchase price (or take out lenders mortgage insurance). As part of the Federal Budget, 10,000 additional first home buyers will be able to buy with as little as a five percent deposit.
If you are considering applying for the First Home Loan Deposit Scheme, don’t wait! I can help you understand if you’re eligible, navigate through the process and find the most competitive home loan rate for your situation. We’ll need to get in quick, places are limited.
Income tax cuts brought forward.
This financial year, some 11 million individuals will benefit from income tax cuts being brought forward. For those earning between $48,000 and $90,000, the relief will be $1,080. Those earning between $90,000 and $120,000 will receive between $1,080 and $2,430 in tax relief and anyone with incomes above $120,000 will end up with the maximum $2,430.
Surplus super fees addressed.
When we change jobs, we often automatically end up with a new super account. As a result, tonnes of us have multiple accounts (6 million additional accounts, in fact!) and are possibly paying extra fees. The total of superannuation fees amount to more than our gas and electricity bills combined. From next financial year, if you change employers your super account will in most cases follow you.
Full tax deductions for assets.
Every business in Australia (except the top 1%) if that’s you, keep scrolling – will be able to deduct the full cost of new capital assets purchased after budget night (6 October 2020) as long as the asset is first used in the business by 30 June 2022. There is no dollar limit on the asset’s capital value, which makes this proposal very appealing to many businesses.
Small and medium businesses with annual aggregated turnover of less than $50 million will also be able to apply “full expensing” to second-hand assets.
Thinking about leveraging this for your business? Let me know, I can help you get this sorted.
A broker who works for you
Even though it can sound like a lot of noise, the release of the Australian budget is a good time to reflect and ponder your own budget and goals. I’m here to help – whatever you might need. Simply call or email and let’s discuss how I can support you.
This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter.You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.