Why Australians’ Borrowing Power May Soon Get a Boost

As a part of its give attention to easing price of dwelling pressures, the Australian authorities has introduced that each one 13.6 million taxpayers in Australia will obtain a tax lower on July 1 by means of the already legislated stage 3 tax cuts. In addition to this, households, small companies and renters, amongst others, will profit from a vary of rebates geared toward easing price of dwelling pressures. While it’s excellent news for Australian taxpayers, tax cuts might additionally influence borrowing energy, opening the doorways for first residence patrons and people seeking to improve their residence.

A Boost from the Budget

Jim Chalmers, Treasurer, has revealed the Federal Budget 2024 consists of a $300 power rebate for each Australian family, and a revamp of stage-three revenue tax cuts that can ship taxpayers a mean of $36 a week from July.

“Just as each Australian taxpayer will get a tax lower, each Australian family will get power value reduction,” he informed parliament, noting that 1 million small companies can even profit from a $325 rebate.

The further revenue might translate into a enhance to borrowing energy, serving to extra first residence patrons get into the market sooner, and making mortgage repayments extra manageable.


2024 Federal Budget


All taxpayers in Australia will obtain a tax lower on July 1 by means of the already legislated stage 3 cuts.


Every family in Australia will obtain $300 off their power invoice by means of a rebate.

Small companies

Around a million small companies will obtain $325 off their energy payments. The $20,000 on the spot asset write-off scheme has additionally been prolonged, whereas 457 “nuisance tariffs” will likely be abolished.


Commonwealth Rent Assistance will likely be elevated by a additional 10 per cent, on high of a 15 per cent improve final yr, benefiting practically 1 million households.

People on JobSeeker with restricted work capability

JobSeeker recipients in a position to work as much as 14 hours a week at the moment are eligible for the upper price, a rise of $54.90 a fortnight. The change is anticipated to learn 4700 individuals.

People who use medicines listed on the PBS

The most co-payment for prescriptions on the Pharmaceutical Benefits Scheme will likely be frozen for a yr at $31.60.

For these on the aged care pension and concession card holders, that most co-payment will likely be frozen for 5 years at $7.70 per prescription.


In addition to the five-year freeze for PBS medicines for individuals on the aged care pension, pensioners will profit from the deeming price being frozen for an additional yr. By extending the freeze till the top of June subsequent yr, the federal government says 870,000 individuals, together with 450,000 age pensioners, will likely be higher off.


A change to pupil debt reindexation which has been backdated to final yr and can wipe about $3 billion off the nation’s collective HECS-HELP debt.

There’s additionally Commonwealth Prac Payment – as much as $319.50 per week for college kids throughout their scientific {and professional} placements in an try to fight “placement poverty” that can begin in mid-2025.


The authorities is spending $1.1 billion to pay superannuation on government-funded paid parental depart for fogeys of infants born or adopted on or after July 1, 2025.


Understanding Borrowing Power

Borrowing energy refers back to the quantity a lender is prepared to lend based mostly on elements corresponding to measurement of deposit, family bills, and after-tax revenue. While tax cuts can present a fine addition to revenue and doubtlessly improve how a lot you might borrow, there are another proactive steps you possibly can take to enhance borrowing energy, together with:

Cut again on spending: Trimming down non-essential spending can release further funds to spice up your deposit which can improve borrowing capability.
Reduce bank card limits: Lowering your bank card restrict – or cancelling bank cards you don’t use – can enhance borrowing energy, as a result of lenders assess the utmost credit score restrict slightly than the excellent stability.
Increase revenue: Finding methods to complement your revenue, corresponding to taking up a second job or negotiating a pay rise, can enhance borrowing energy.

Expert Advice From a Mortgage Broker

While on-line calculators – corresponding to this one – can present an estimate of your borrowing energy, getting tailor-made recommendation based mostly in your particular person circumstances is invaluable. Consult with a Mortgage Express dealer to get personalised recommendation based mostly in your monetary state of affairs. Work intently with an knowledgeable, corresponding to these at Mortgage Express, and get insights into your borrowing energy with a strategic plan that can assist you attain your private home possession objectives.

While all care has been taken within the preparation of this publication, no guarantee is given as to the accuracy of the knowledge and no accountability is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication doesn’t represent personalised monetary recommendation. It might not be related to particular person circumstances. Nothing on this publication is, or must be taken as, a suggestion, invitation, or advice to purchase, promote, or retain any funding in or make any deposit with any individual. You ought to search skilled recommendation earlier than taking any motion in relation to the issues dealt inside this publication. A Disclosure Statement is offered on request and freed from cost.

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