Published 7 October 2020
Budget impacts for Homebuyers
Big news for small business
Personal tax cuts – more cash to buy or pay off your home
If you’re saving for a first home, or paying off your home, tax cuts mean extra money to get ahead sooner.
The Federal Budget is bringing forward planned tax cuts by two years, to give more than 11 million Australians a tax cut backdated to 1 July this year.
The 19% tax threshold is being raised from $37,000 to $45,000, and the 32.5% threshold will jump from $90,000 to $120,000. The Low and Middle Income Tax Offset, which was due to be phased out, will stay with us for another year.
The upshot is that more than 7 million Australians will receive tax relief of $2,000 or more this year. Low and middle income earners will receive a tax break of up to $2,745 for singles, and up to $5,490 for dual income families.
If you’re on a high income of, say, $80,000 annually, you’ll have an extra $83 in your pocket each fortnight, rising to $99 fortnightly if your annual income is $140,000.2
Need more information?
Bear in mind, the Budget initiatives will need to pass through Parliament before they take effect. Contact your local Mortgage Choice expert today to know how you can start achieving your property goals – and for more information on how the 2020 Federal Budget can help you get there.
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