Discover the budget updates that could help you this year.
The release of the budget is always something that is met with a mix of stress and excitement from all Australians. While the budget announcement came back in early May, we’ll see the changes roll out on July 2. So what does this year’s budget have in store for those of us who want to see our dollar go as far as possible? What are some of the updates that could mean more dollars straight into your savings for a home loan? We’ve broken it down for you.
How families will save money
This year’s budget saw one update that’s fantastic news for families. The cost of child care is something that hits many Australian parents, so it’s great to see that July 2 will bring a new child care package to reduce the cost of fees. The update will see the childcare subsidy paid into your provider’s account to bring your fees down. You can work out what you might be entitled to by using an online calculator. That said, for families earning under $187,000 per year, there is no annual limit on the amount of subsidy you’ll receive.
In great news for all families with kids in school or soon to start school, $24.5 billion has been allocated to the Quality Schools Package over the next 10 years. And for those families who are sending their young learners off to university (especially those in regional areas) the Parental Income test has been raised from $150,000 to $160,000 with an additional $10,000 for each additional child.
Great budget 2018 updates for everyone – singles and couples, too!
There are some updates to the 2018 budget that everyone can look forward to – and the cost of your energy bill is one of them. Thanks to the National Energy Guarantee, it’s thought the average Australian household will enjoy an average saving of $400 on annual energy bills. That’s a tidy little bonus.
But it’s the income tax rate that is perhaps the most exciting budget update that could really benefit your savings. Those who earn more than $37,000 per year paying 32.5 cents per dollar could see a tax reduction of up to $530 annually. The same for those who earn under $37,000 per year (paying 19 cents per dollar) could see a tax reduction of up to $200. The longer-term plan is to have the tax rate flatten, to see the whole 37% tax bracket totally gone.
We all breathed a sigh of relief when the proposed 2.5% Medicare levy was ditched in favour of holding it at the 2% mark. Another place for you to take what you’ve saved and put it right into your home fund!
The budget also saw many funds being directed to infrastructure updates across the nation, which can mean big things for the value of property. Learn more about investing before the boom here.
Here’s to 2018-19 being a great year for saving!
How is your saving going? Perhaps it’s time to talk with an Aussie Broker. Make a free appointment today.