The 2019 Federal Budget was announced last Tuesday – so who are the winners, you might ask?
Low- and middle-income earners are one of the winners from the 2019 Federal Budget. If you fall into this category you will receive personal tax cuts, for singles this is a maximum of $1,080 or couples a maximum of $2,160.
From a business perspective, small- and medium-size businesses received a positive outcome from the budget with the instant asset write off being increased to $30,000. This will benefit an additional 22,000 businesses.
For everyday Australian commuters, the budget announced $15 billion to be used for new roads and rail projects to help with congestion issues on our roads. Not only is this good for jobs and ease of travel, it is important for property investors who could benefit from investing near the right projects, such as the under-construction airport link.
How did Western Australia fare?
As a state, Western Australia is a big winner from the budget, as additional GST payments will continue to be received in 2021-2022 increasing total payments to $11.1 billion.
Unfortunately, despite the Treasurer stating he understands the house affordability issues in Australia, the budget didn’t bring any positive outcomes for First Home Buyers but instead seemed to favour community housing.
Cash rate still on hold!
It was no surprise that the Reserve Bank of Australia (RBA) decided to leave the cash rate at 1.50% this month. Unfortunately, banks have not mirrored the RBA stability over the past two years however, there are signs the banks are starting to factor in the RBA cut and are decreasing fixed rates to test out the market.
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Can we expect loan rates to decrease?
The RBA may move rates, but the question is: how will banks pass this on? Only time will tell.
However, that is why it is important to stay in touch with your broker to make sure your home loan is still working for you. It does not take long to chat to your broker over the phone for a brief chat.
How can your broker help you?
Quite often we get calls from existing clients who have been reading our newsletter, or connecting with us on social media. It only takes a few seconds to pick up the phone to call, email, SMS, (which ever means of communication you prefer) to see if there is a better deal out there for you or any friends or family that we can help.
Remember our business depends on client referrals, if you know of anyone who would benefit from my services, please feel free to pass on our contact details.
And to those that are actively keeping in contact and referring business to us, we wish to thank you for your ongoing support!
On that note, please do not forget to sign the following petitions to show your support to keep competition strong and healthy:
- https://www.brokerbehindyou.com.au/ (website link now removed)
- https://www.change.org/p/federal-treasurer-josh-frydenberg-save-the-mortgage-broking-industry
Property Wizards is a Credit Representative 490157 of House & Home Loans Pty Ltd Australian Credit Licence 364974
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