How the 2024 Federal Budget impacts the self-employed

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.  

House with coins depicting saving money and home loans

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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