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CLAMPING DOWN POST BUDGET

Lets talk about the Budget, not just any budget, THE BUDGET.

I’m sure you’ve heard the buzz from last Tuesday, the winners and the losers.  Now that everything has calmed down, we can discuss what this means for you. While the budget is similar to your typical labour budget (during a liberal government, yeah I don’t get it either), the budget still remains focused on reducing our national debt.

Here is our take on the budget.

PRO: Easier ways to save for a first home by salary sacrificing into Super.
CON: It’s capped at $30,000 while the median price on a house in the inner city suburbs of Perth is $550,000. $30,000 barely puts a dent in what you need for a deposit.

PRO: Australians over the age of 65 are incentivised to downsize their home to make it available for younger families, and can contribute up to 300k into super from the sale.
CON: You must have lived in the house for 10 years or more and it could cost you more to downsize, as the sale could be costly and be included in the means test.

PRO: The National Disability Affordability Scheme will be funded.
CON: At the cost of the Medicare levy increasing.

PRO: Increased spending on Defence, and the AFP to receive funding for counter terrorism.
CON: Reduced spending on foreign aid.

PRO: $18.6 Billion in extra funding for schools.
CON: Funding will be standardised, therefore over 20 schools will lose commonwealth funding and over 300 will end up with less than expected.

PRO: Temporary sponsored parent visa will allow relatives to stay in Australia for up to 10 years.
CON: The threshold to start repaying the HECS-HELP loan is reduced to $42,000. You’ll be spending more before you earn more. Say goodbye to saving.

PRO: A fund to train Australian apprentices and trainees.
CON: Employers wanting to hire foreigners will be slammed with a levy up to $5,000 per worker to pay for it.

PRO: The introduction of Commonwealth Supported Places in the sub bachelor programs like diplomas.
CON: Australian permanent residents and most New Zealand Citizens will no longer be able to apply for commonwealth supported university fees.

If your worried about how this budget affects you or your business, join us today for a FREE business consultation or simple a chat over coffee. How has the budget affected you? Do you need to clamp down on expenses? Does the thought of new taxes and an increased Medicare levy scare you? Let us know how you feel via email or give us a call on (08) 9474 6333 to discuss more of what you need. There’s nothing more important than having peace of mind.

 

 

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