Federal Budget 2020-21: What’s in it for you?

The First Home Loan Deposit Scheme (FHLDS) helps eligible first home owners get into the market with just a 5% deposit and no lenders mortgage insurance because the government guarantees your loan.

The Scheme was initially limited to 10,000 first home owners each financial year. The Budget has doubled that number to 20,000. 

Applicants will need to build a new home or purchase a newly built home eligible for the FHLDS but the property price limits have been increased. Check out the new price caps in Table 1.

Call your local Mortgage Choice broker today to find out if you’re eligible for the First Home Loan Deposit Scheme, and start the ball rolling on buying your own home!

Source: Housing Minister and Assistant Treasurer

The new HomeBuilder scheme provides $25,000 in cash to eligible new home builders or renovators but it is due to end on 31 December 2020, and this deadline was not extended as part of the Budget.

If you’re keen to tap into the $25,000 HomeBuilder cash grant, contact your local Mortgage Choice broker urgently – time is running out.

Thinking of adding a granny flat to your backyard? It just became more attractive. 

Building a granny flat for an elderly relative or for those with permanent disabilities,  will be cheaper from July 1 next year as capital gains tax will no longer have to be paid.²

Talk to your local Mortgage Choice broker about funding options for your granny flat.

From 6 October 2020 until 30 June 2022, businesses with turnover of up to $5 billion will be able to immediately write off on tax the full value of any eligible asset purchased for the business.

That’s great news for your small business! It’s a supersized extension of the $150,000 instant asset write off, which was scheduled to end on 31 December 2020. It means you can invest in new equipment to boost productivity or explore new product lines, while pocketing valuable savings on tax. 

Even better, it’s an opportunity to take advantage of super-low interest rates on business loans to fund new equipment.

Talk to your local Mortgage Choice broker about competitively priced asset finance that helps your business grow.

The new JobMaker scheme pays businesses to hire JobSeeker recipients. It’s worth $200 a week for each new employee aged 16-29, or $100 weekly for new eligible employees aged 30-35. The scheme will run until 6 October 2022, and your new hire(s) needs to work at least 20 hours each week to be eligible.

The Budget announced a loss carry-back scheme that will let businesses, which were profitable last year claim back some of the taxes paid.

Losses incurred to June 2022 can be offset against prior profits made in or after the 2018-19 financial year. If your business is eligible, the tax refund will be paid when you lodge your 2020-21 and 2021-22 tax returns.