Budget can be a tough time, even if you are financially savvy. Politicians are experts at putting forward a budget that sounds amazing (spin anyone?) but when you break it down it affects you more than you realise.
So how does the 2017 budget affect you?
Let’s take a snapshot shall we:
- This was the budget of budgets for small business owners: You will now have access to the “instant asset write-off” scheme which means business owners can instantly claim up to $20,000 of necessary business purchases for tax purposes.
- If you are older than 65, are on a pension or are looking at downgrading your home this is a budget for you. This includes the ability to add $300,000 into your super from the sale of your home, tax free. This is to encourage downsizing to free up housing for younger, bigger families.
- If you’re a student this is a tough one for you, fees have increased by 7.5 percent as of next year and you’ll have to pay your loan off faster. Under the new budget, the new HECs repayment threshold is now $42,000 a year – down from $55,000 a year.
- If you’re a first home buyer it was announced that young people can contribute and withdraw up to $30,000 from their super to purchase their first home.
- If you’re married and currently own your own home there doesn’t seem to be anything in the pot for you but also you won’t have anything taken away. So carry on as usual.
- If you have a disability or are the carer of someone who does the government has confirmed it will “fully fund” the National Disability Insurance Scheme to be rolled out nationally by 2020. This is amazing news.
- If you’re a foreign investor there is now an annual levy of $5000 if you do not rent out the property you’ve purchased or have someone living in it. Overseas-based investors will also now only be able to buy 50 percent of new housing developments.
It’s a balanced budget for most, some tough decisions for students but some welcome news regarding foreign investors which may help our affordability issues.