By Ryan Gair
May 15, 2024
The 2024 Federal Budget proposes a wave of new measures that could significantly benefit self-employed individuals. I’ve broken down a few of the announcements, with a particular focus on property as that is the hot topic issue in Canberra at the moment.
Stage 3 Income Tax Cuts
One of the most significant changes in the 2024 Federal Budget is the implementation of Stage 3 income tax cuts, effective from July 1, 2024. These tax cuts will increase disposable income for many Australians, including the self-employed. By reducing the marginal tax rates for middle-income earners, self-employed individuals can expect to retain more of their earnings, making it easier to save for a deposit and manage mortgage repayments.
Instant Asset Write-Off
The 2024 Federal Budget has extended measures aimed at freeing up cash flow and reduce compliance costs through the instant asset write-off which will remain at $20,000 until 30 June 2025. This measure allows the self-employed with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000.
Support for Green Energy and Infrastructure Projects
Significant investments in green energy and infrastructure are set to create numerous opportunities for self-employed individuals. The government’s commitment to renewable energy projects and infrastructure development not only aims to boost economic growth but also provides stability for self-employed workers in these sectors. This stability can translate into a more predictable income stream, which is always favourable when applying for a mortgage.
Homes for Australia Plan
The Homes for Australia Plan is an ambitious initiative that includes a series of measures to increase housing affordability and availability. Key components of the plan involve a promise to build 1.2 million new homes over five years from July 2024, and another $6.2 billion in new investments, with an overall spend of $32 billion. For self-employed buyers, these measures mean more opportunities to find affordable housing options and secure financing.
If the Government’s new proposals pass through Parliament, the 2024 Federal Budget offers numerous opportunities for self-employed individuals looking to buy property. By taking advantage of the income tax cuts, cost of living relief, support for green energy, and housing initiatives, self-employed buyers can navigate the property market with greater ease and confidence. At Rate Money, we are dedicated to helping the self-employed understand and leverage these opportunities to achieve their homeownership dreams, our website or contact our team of experts today.
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Ella Phillips, Branch Principal Parramatta
Ella and her team are dedicated to serving a diverse self-employed community, from IT professionals to tradespeople. What makes Rate Money special for Ella is the supportive, family-like culture where collaboration always comes first.
Mike O’Malley, Branch Principal, Sydney CBD
As the principal of the Sydney CBD Rate Money branch since 2020, Michael O’Malley is passionate about building long-term relationships with his clients.