After a lengthy and grinding election, the votes have been cast and the Liberal party have surprisingly held government. Australians are now set for three years of the Morrison government.
So, what does this all mean?
The promises made by Liberal were to implement tax cuts and provide assistance for first home buyers.
Thumbs up for tax cuts
Many investors and retirees will be breathing a sigh of relief. With Labor defeated comes the scrapping of their widely unpopular franking credits proposal, minimum 30% tax rate for family trusts and lowering of key superannuation thresholds.
The Liberal party estimates approximately 13.3 million tax payers will pay lower taxes in 2024-25.
As announced in this year’s Federal Budget, Australian taxpayers earning up to $126,000 per year are to receive a tax cut. For the 2018/19 financial year, low and middle-income earners will have their tax reduced by up to $1,080 for single earners and up to $2,160 for dual income families.
Thumbs up for first home buyers
Many young voters and families may have been enticed by the Liberal party’s election promise to allow first home buyers to purchase property with as little as a 5% deposit.
The First Home Loan Deposit Scheme will partner with private lenders and be available to first home buyers only, enabling some lenders to provide 95% borrowing.
Thumbs up for investment
Increased funding for energy is set to occur in the coming years. This may present an opportunity for investors that are looking at technologies and companies that are focused on renewable energies.
The Morrison government announced $100 billion (about $25 billion more than currently) in infrastructure spend over the next 10 years. Infrastructure upgrades may present an opportunity for investors to capitalise on property markets.
Thumbs up for Power2 clients?
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