by Ashlee Salamon

The tax cuts introduced on 1 July 2024 are set to ease cost-of-living pressures for Australians by putting more money back in your pockets.

These changes are particularly significant for the housing market, potentially making homeownership more attainable.

Increased Disposable Income

The most immediate benefit of these tax cuts is the increase in disposable income. With lower tax rates, individuals retain more of their earnings, giving them extra funds that can be saved or invested. For homebuyers, this means more money available for a deposit, helping them reach their savings goals faster. Additionally, increased disposable income enhances borrowing capacity, as lenders consider net income when assessing mortgage eligibility.

Boosted Savings for Deposits

Saving for a deposit is often the biggest hurdle to buying a home. The tax cuts allow people to save more quickly. This faster savings process can help more Australians enter the housing market sooner.

Enhanced Borrowing Capacity

With higher take-home pay, potential homebuyers can demonstrate stronger financial health, potentially increasing their borrowing capacity. This improved borrowing power means they can access additional funding, opening up more options in the housing market, including properties that were previously out of reach.

How We Can Help

Understanding the impact of these tax cuts on your financial situation is crucial, especially when planning a property purchase. A pre-approval is more important than ever, giving you a clear idea of your borrowing capacity and making your property search more focused and confident.

Contact us today below or call 02 4969 6600 to discuss a lending pre-assessment tailored to your needs and take the first step towards homeownership with confidence.