As we embark on a new financial year, FY25 brings a host of changes that will impact both individuals and businesses. From tax cuts to energy rebates, these adjustments could significantly affect your financial situation. Let’s explore the key changes and opportunities, with a special focus on the enhanced First Home Guarantee Scheme.
Tax Cuts and Wage Increases:
The implementation of new tax legislation could lead to substantial savings for many Australians. Coupled with a 3.75% increase in minimum and award wages, these changes aim to boost disposable income. However, business owners should factor these wage increases into their financial planning.
Superannuation and Energy Relief:
The compulsory superannuation rate has increased from 11% to 11.5%, bolstering retirement savings. Additionally, a $300 energy rebate, distributed as $75 off each of your next four quarterly power bills, offers some relief against rising energy costs.
First Home Guarantee Scheme:
The standout opportunity in FY25 is the enhanced First Home Guarantee Scheme, effective from July 1, 2025. This initiative offers a lifeline to those dreaming of homeownership.
Here’s what you need to know:
- Increased Availability: Up to 35,000 places will be available, significantly improving your chances of securing a spot.
- Low Deposit, No LMI: Buy your first home with just a 5% deposit, without the burden of Lender’s Mortgage Insurance (LMI).
- Flexible Options: The scheme covers houses, apartments, and land packages, catering to diverse preferences.
- Income Caps: $125,000 for singles and $200,000 for couples, making it accessible to a wide range of income levels.
Eligibility Criteria:
- Australian citizens or permanent residents
- 18 years or older
- First-time buyers or those who haven’t owned property in 10+ years
- Must be owner-occupiers
This enhanced scheme presents an unprecedented opportunity for many Australians to step onto the property ladder. If you meet the criteria, now might be the perfect time to consider homeownership.
Navigating the Changes:
While these changes offer exciting opportunities, they also require careful consideration and planning. Whether you’re looking to optimise your tax strategy, enter the property market, or simply manage your finances more effectively, understanding these changes is crucial.
As we step into this new financial landscape, stay informed, be proactive, and consider how these changes can work to your advantage.
If you’re unsure about how these changes affect you personally or professionally, don’t hesitate to seek expert advice. We can provide tailored guidance to help you navigate FY25 and beyond, ensuring you’re well-positioned to make the most of these opportunities.
Arranging finance can be stressful, especially with some lenders now taking extra steps including going through your living expenses and credit scoring (ouch!). And sometimes banks can make you feel like ‘just a number’. That’s why we want to do things differently: because you deserve better.
As a local family-owned business, our team takes the time to listen, answer your questions and make getting your home, car or equipment loan as easy as possible.