Australian Economy

The Government announced that they are building upon their strong foundations with a responsible Budget focused on housing affordability, infrastructure, education, welfare, and measures that improve fairness.

 Expenditure is expected to top $464 billion over the next financial year on various elements to help bring the budget back to surplus by 2021. Listed below are some of the key drivers of change that are likely to effect you and your family. 

1. First Home Super Saver Scheme:

Why this matters: First home buyers will be able to accelerate their deposit savings by close to 30%.

2. Reducing barriers to downsizing for older Australians

Why this matters: Sale proceeds from downsizing can be contributed into super without effecting existing concessional contribution caps.

3. Abolished tax deductions for travel expenses for investment properties 

Why this matters: Tax deductible trips interstate to 'manage' your investment property are over. 

4. Increase of tax for individuals (2019) with increased Medicare levy and reduction of tax for businesses

Why this matters: High income individuals will suffer while businesses pay less tax. 

5. Return of pensioner's card to those who lost it after asset test changes in January this year 

Why this matters: Pensioners will get some important benefits back. 

6. University fees are on the rise

Why this matters: The income level at which you will have to start repaying your HECS debt will also be reduced. From July next year, you'll have to repay it once you hit $42,000.

7. No child care cap for families on a low-middle income

Why this matters: Families with an income of less than $185,710 can put their children through early childhood care without being penalised. 

Still have some questions?

If you want to discuss the impact of the budget and find out about some helpful strategies, arrange to speak with your SFP advisor, or if you don't have one yet - call us to arrange an appointment on 02 9328 0876.

General Disclaimer: This article 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. Please seek personal financial advice prior to acting on this information.