An influx of federal, state, and local government changes took effect on July 1, impacting every investor, homeowner, renter and aspiring homebuyer in Australia.
Of all the government changes kicking in, nine were specifically targeted at homeowners, homebuyers, and renters.
Though each change was formulated and applied independently by the various governments, the combined impact could be overwhelming for some.
Listed here are four of the most crucial changes:
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The federal government will impose a roughly 1.5bn-a-year tax on the Big Five: Commonwealth Bank of Australia (CBA), Australia and New Zealand Banking Group (ANZ), Westpac, National Australia Bank (NAB), and Macquarie Group.
It’s widely expected that the flow on increases will impact mortgage and commercial lending rates. Foreign tax residents will be subject to an increased Capital Gains Tax (CGT) withholding rate of 12.5%, as well as a reduced CGT withholding threshold of $750,000 (down from $2m).
The Australian Taxation Office will disallow deductions related to inspecting, maintaining, or collecting rent for a residential rental property.
Prospective first-home buyers will be able to access specific voluntary contributions made into superannuation after July 1, 2017. The voluntary contributions will be accessible from July 1, 2018. Limits apply to the amount that people can contribute under this measure to $15,000 in a single year and $30,000 in total.
For more information regarding these government and budget changes, check out the page 2 blurb in our latest Market Updates here
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