Next Month’s Tax Cuts Set To Boost Super And Slash Mortgages

Starting July 1, Australians will benefit from updated stage three tax cuts, which promise to enhance superannuation and reduce mortgage burdens. 

The tax cuts are expected to significantly increase borrowing capacities for homebuyers, providing much-needed relief amid the housing affordability crisis.

Stay up-to-date on the latest news with The National Briefing – keeping you in the loop with news as it hits:

Every taxpayer will receive a tax cut, with amounts varying based on income. 

For example, individuals earning the average wage of $73,000 will see a $1504 reduction in their taxes. 

Those earning $45,000 will get $804 off, while people earning $100,000 and $150,000 will save $2179 and $3729 annually.

Mortgage Choice broker James Algar said: “A home buyer with a $100,000 income could see their borrowing capacity increase by about $25,000.”

RELATED:   Australian Premiers Group Chat Leaked: Steven Miles Reveals Who Gets Roasted 

Mr Algar said this boost could be decisive in competitive property auctions.

He also noticed that households with dual incomes could see even more significant benefits. 

“It’s reasonable to assume this will have at least double the impact for dual-income households.”

PropTrack Senior Economist Paul Ryan said: “Tax cuts will provide a slight tailwind for the property market, especially for more affordable homes,” 

“First-home buyers, constrained by higher interest rates and borrowing capacities, will particularly benefit.”

Subscribe to The Briefing, Australia’s fastest-growing news podcast on LiSTNR today. The Briefing serves up the latest news and deep dives on topics affecting you, all in under 20 minutes.