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Written by Kris Wrenn
This week we saw the Albanese-led Labour Government win the election in a fairly convincing style.
But what does the new Labour Government promise to offer Australians in regards to their finances?
- Labour has promised to support the final stage of the tax cuts promised by the LNP.
- Labour has promised not to introduce any new taxes except for multinationals. Loopholes for the big Internationals are the target.
- Labour has matched the Coalitions policies on freezing deeming rates for pensioners and other payments for two years as well as expanding the eligibility for the Commonwealth Seniors Health Card by raising the income threshold.
- Labour appears to be proceeding with most Coalition infrastructure projects that are underway. They have promised to put $500m for high-speed rail on the East Coast.
- There is the promise of tax breaks for electric cars. Starting July this year, to be reviewed in 3 years.
- They will maintain the coalition’s proposal to lower the age at which people can make a downsizers contribution (put money into Super after selling their home) to age 60. This is meant to encourage downsizing to increase the supply of family homes and help increase supply to meet demand and stabilise prices.
- There is also the promise of a $10billion Housing Australia Fund to build 30,000 ‘affordable’ homes, some to be used for women fleeing domestic violence.
Major change with housing – Help to Buy Scheme
Labour’s main housing proposal is a ‘shared equity’ scheme, where the Government will fund either 30 or 40 percent of a property with home buyers – 30% for established and 40% for new builds. The price of the property will be capped at $950k in NSW and $850k in Victoria.
They will offer 10,000 opportunities per annum, and only to those singles earning under $90,000 or couples earning under $120,000. You do not have to be a first home buyer, as long as you do not currently own a property and are attempting to purchase a Principle Place of Residence. So this may include those that have sold their property, for example following a divorce.
Buyers will need as little as a 2% deposit but they will still need to be approved for the lending by a bank.
The idea is that the portion owned by the Government can then be purchased back by the home-owner over time, in increments of at least 5% at a time. Similar schemes have been applied in the UK and also already in certain states in Australia.