Five things you need to know about the 2020-21 budget

Just to recap on the recent Federal Budget, there are five key things you need to know that may put money back in your pocket:

There’s help for first home buyers.
Affordability continues to plague millennials, Gen X and Ys. So, the government is extending its First Home Loan Deposit Scheme to allow another 10,000 first timers to get around the need to save a deposit totalling 20 percent of the purchase price (or take out lenders mortgage insurance). Announced in the recent Federal Budget, 10,000 additional first home buyers will be able to buy with as little as a five percent deposit. I can help you access this scheme and buy into the Australian dream.

Collect cash for hiring young. 
For small business owners, be aware of the new edition to the JobKeeper, JobSeeker family, introducing JobMaker! The government will pay a $200 “hiring credit” to a business for each week you employ someone on JobSeeker aged between 16 and 29. If they’re slightly older, up to 35 years, the credit is halved. These credits will be paid for 12 months. The rules? The young staff members need to work an average of 20 hours a week, and have been a recipient of one of three key government payments over the previous 3 months.

Full tax deductions for assets.
Business owners will be also delighted to hear that you will be able to deduct the full cost of capital assets purchased from 7 October onwards… as long as the asset is first used by 30 June 2022. On top of that, small and medium businesses will also be able to apply “full expensing” to second-hand assets. This is intended to encourage businesses to bring forward investment by boosting cash flow. It’s certainly an incentive to bring forward future purchases to this financial year.

Personal tax cuts brought forward.
The government was intending to make changes to the tax thresholds in a few years, in 2022. But they’ve brought those changes forward to now, and some 11 million Australians are set to benefit. This financial year, low and middle income earners will see, on average, $2,745 back in their pockets at tax time. Dual-income couples will be $5,490 better off compared to previous years. The biggest beneficiaries are workers on $120,000, as $30,000 more of their income will avoid the 37c threshold. A dual income, no kids (DINK) household on $240,000 will be nearly $5000 better off.

Sick of consolidating super funds? 
Do you have multiple super funds? The old superfund game is done. From now on, when you change job, your existing super fund will follow you. No longer do you automatically end up with a new super fund under a new employer. There are currently 6 million additional funds in Australia, and we are all footing the bill for unnecessary fees on those additional funds. These fees cost Australians more than our gas and electricity bills combined. This is a little but crucial win in the recent budget.

Disclaimer: This has been created by FHNS Pty Ltd (ABN 43 102 271 778, Australian Credit Licence no. 520262). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter.You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, FHNS Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.