2020 saw Australians ride a whirlwind of natural and economic disasters, with COVID-19 bringing the world into the most severe global economic downturn since the Great Depression.
Despite a tremendously challenging year, Australians have coped extremely well and are ready to return to normalcy and regain their freedom.
The NEW Federal Budget announced yesterday evening, will certainly kickstart the economy with RECORD government spending aimed to create jobs, rebuild the economy, and see a return to normal living for most Australians.
It is predicted that economic growth over 2021-22 will jump to a staggering 4.75%, and then returning to regular growth of 2.75% over 2022-23. This jump is a result of enormous Government spending intended to bounce back the Country into a thriving and prosperous position.
KEY BUDGET HIGHLIGHTS
- An astounding $110 billion will be spent on infrastructure over the next 10 years, making it the highest spend on infrastructure in Australian history.
- $1 million new jobs will be created between 2020-24
- Business tax breaks of $26 billion over 2020-24
- $17.8 billion in tax relief – more than 11 million taxpayers will get a tax cut, backdated to 1 July (for more than 7 million Australians, this change mean tax relief of $2,000 or more this year.)
- A new JobMaker hiring credit will be available for employers who hire people on JobSeeker, aged 16-35, supporting around 450,000 jobs for young people.
- A new 50% wage subsidy will support 100,000 new apprentices and traineeships. This builds on the existing 50% wage subsidy to protect 180,000 apprenticeships and trainees, and the JobTrainer fund, which will create up to 340,000 training places.
- Business support – the Government will offer “temporary full expensing” meaning businesses that make new investments will be able to write off the entire cost in one year, rather than having the asset depreciate over several years.
IMPORTANT CHANGES FOR THE PROPERTY MARKET:
In any economic recovery, we expect to see property prices rise as more people are incentivized to enter the market. This is a consistent trend documented over the last 50 years.
New tax relief refunds provide an opportunity for money to be added towards a deposit for a new home.
First Time Home Buyers will benefit significantly from the various Government Schemes, low deposits and will now be in a better financial position to not only buy their first home, but to also buy an investment property.
Record spending on infrastructure will boost the economy, jobs and consequently boost property prices.
Now is the time to get into the property market before the big boom.
New budget changes for the property market include:
INCREASING HOME OWNERSHIP AND AFFORDABLE HOUSING
An additional 10,000 first home buyers will be able to purchase a new home sooner under the First Home Loan Deposit Scheme. This builds on the 20,000 first home buyers that are currently being supported to purchase a home this year with a deposit as low as 5%.
In the new Budget, the Morrison Government is also enabling an additional $1 billion of low-cost finance to support the construction of affordable housing. This will take the total concessional finance that has been made available to community housing providers to $3 billion.
DISCOVER HOW YOU CAN UTILISE THE NEW BUDGET TO PROPEL YOUR PROPERTY INVESTING PORTFOLIO.