Here’s a glimpse of what’s in store for us next, as the Federal Government handed down the 2020 Budget this week. Extended government assistance and strategies to boost affordable housing are at the core of its efforts to support the housing, employment, and construction industries into 2021.
Tax cuts are on the horizon. Most Australian employees will receive $1,000 or more in their bank accounts over the coming months as stage two tax cuts are backdated to July 1, 2020, meaning they’ll begin to be taxed less - pending the changes being passed first. Medium-income earners can expect $1,080 back under the changes, and those on higher incomes will see a permanent cut of $2,430 each year. With some hard earned money back in the pockets of those saving for a deposit, the tax cuts are likely to play a role in improving housing affordability by helping people meet their savings goals quicker.
The First Home Loan Deposit scheme will also double its intake. Its benefits will resound throughout the entire property market with the continuation of the scheme estimated to generate $800m for the economy, stimulate housing and construction activity, and fundamentally increase housing demand.
These and a number of other announcements made in the Budget neatly complement the government’s recent plans to overhaul responsible lending laws that have hindered many home buyers from obtaining finance. Together, these moves are set to bring greater balance back into place, enabling accessibility, affordability and real opportunities for people to achieve their goal of entering the property market.
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