Tax Time is Nearly Here!

The election results are in, you may be asking whats next for tax?

Labor has previously that it would seek to issue its own budget by the time of the usual mid-year fiscal and economy update in December. These measures were not introduced into parliament, and it is unknown at this stage whether the Labor government will proceed or make significant modifications.

Three things you need to know:

• Labor says it is backing the third stage of tax cuts which will see the 32.5{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} rate cut to 30{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} to make one big tax bracket between $45K – $200K from 1 July 2024 (the 37{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} bracket will be removed completely)
• Labor are also saying they will back the freeze to deeming rates and expand the eligibility for the Commonwealth Seniors Health Card by raising the income threshold
• Labor has also announced the introduction of an equity contribution scheme to help first home owners get a foot on the property ladder.  Which means that eligible home buyers will need a minimum deposit of 2 per cent, with an equity contribution from the Federal Government of up to a maximum of 40 percent of the purchase price of a new home and up to a maximum of 30 percent of the purchase price for an existing home.

There is no easy answer for where we are headed!

The question is – what do we do now? 

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