As you’d be well aware, the 2021-22 budget was released this week. There’s been a lot of talk so we wanted to help break down the key initiatives targeting business asset wrote offs & home ownership for first time buyers which with many of our clients does not affect them, but may well help people you know:
Instant asset write off
Good news if you’re a business owner! The instant asset write off scheme was due to expire on June 30, 2022. However it will now continue for another 12 months, giving business owners the chance to use it for all eligible assets acquired from 7.30pm on October 6, 2020, and first used or installed by June 30, 2023.
Family Home Guarantee
This is a newly created government scheme that will see 10,000 places made available over a four year period, this means 2,500 First Home Guarantees will be made available each year.
This scheme will provide single mums and dads with dependants the chance to build a new home or purchase an existing home with a 2% deposit without having to pay lender’s mortgage insurance, also known as LMI.
While this is a great initiative, similar schemes have come up before and they getting taken up extremely quickly.
First Home Loan Deposit Scheme (FHLDS)
Also known as the New Homes Guarantee, this scheme will provide an additional 10,000 places in this year’s federal budget.
If you have a 5% deposit, looking to build a new home or purchase a newly built home, this scheme could help first time buyers get into the property market sooner.
It’s important to note there are property price caps that vary from state-to-state for this scheme.
Again, this scheme is ultra competitive, reach out to us if you’d like to know more.
Super Saver Scheme (FHSSS)
The FHSSS scheme allows you to save money for your first home inside your super fund. In this year’s budget, the government announced that the maximum amount of money able to be released through the Super Saver Scheme has increased from $30,000 to $50,000.
High level government budgets are never that exciting, but they can have an impact, and each change you can take advantage of, goes towards the goals of growing your wealth and financial wellness. This is as good a time as any to reflect on your own budget and goals. We’re always here to help – whatever you might need. Simply call or email to discuss how we can be of support to you.