The 2024 Federal Budget proposes new measures that could significantly benefit self-employed individuals. I’ve broken down a few announcements, focusing on property, as that is the current hot topic in Canberra.
One of the most significant changes in the 2024 Federal Budget is the implementation of Stage 3 income tax cuts, effective from July 1, 2024. These tax cuts will increase disposable income for many Australians, including the self-employed. By reducing the marginal tax rates for middle-income earners, self-employed individuals can expect to retain more of their earnings, making saving for a deposit and managing mortgage repayments easier.
The 2024 Federal Budget has extended measures to free up cash flow and reduce compliance costs through the instant asset write-off, which will remain at $20,000 until 30 June 2025. This measure allows the self-employed with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000.
Significant investments in green energy and infrastructure are set to create numerous opportunities for self-employed individuals. The government’s commitment to renewable energy projects and infrastructure development aims to boost economic growth and provide stability for self-employed workers in these sectors. This stability can translate into a more predictable income stream, which is always favourable when applying for a mortgage.
The Homes for Australia Plan is an ambitious initiative that includes measures to increase housing affordability and availability. Key components of the plan involve a promise to build 1.2 million new homes over five years from July 2024 and another $6.2 billion in new investments for an overall spending of $32 billion. For self-employed buyers, these measures mean more opportunities to find affordable housing options and secure financing.
If the Government’s new proposals pass through Parliament, the 2024 Federal Budget offers numerous opportunities for self-employed individuals looking to buy property. By taking advantage of the income tax cuts, cost of living relief, support for green energy, and housing initiatives, self-employed buyers can navigate the property market with greater ease and confidence.
At Rate Money, we are dedicated to helping the self-employed understand and leverage these opportunities to achieve their homeownership dreams. Contact our team of experts today.