After much talk of proposed changes to negative gearing and capital gains tax the Budget was released without any tweaks to the way our properties are taxed.
While existing home owners and investors can breathe a collective sigh of relief, some first home buyer advocates feel it was a missed opportunity to address housing affordability.
First Home Buyers Australia (FHBA) co-founder Daniel Cohen told Domain he believed changes to negative gearing could have levelled the playing field and helped younger generations break into the property market.
Negative gearing encourages investors into the market because it allows them to claim back losses from investment properties.
But Treasurer Scott Morrison said removing or limiting negative gearing would “increase the tax burden on Australians just trying to invest and provide a future for their families”, reported Domain.
“Those earning less than $80,000 a year in taxable income make up two-thirds of those who use negative gearing,” he said.
So if property owners didn’t rate a mention, who are the budget winners and losers? Check out this easy read on the ABC for a run down on who will be better off financially and who will be hit in the hip pocket.
Spoiler alert: if you’re a small business you can celebrate, if you’re a smoker you’re getting slugged again sorry.
Trying to piece together your own economic plan? Contact us for a chat about buying, selling or renting.