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The FBAA has applauded Treasurer Scott Morrison’s maiden budget, saying it will relieve pressure for mortgage-holders and those wanting to enter the property market.
Following the Reserve Bank’s decision to cut the official cash rate to a record low of 1.75 per cent, the FBAA’s Peter White said measures taken in the federal budget will ensure home loans remain within the grasp of working Australians.
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“The tax cuts to small- and medium-size businesses will go a long way to creating more jobs, while the overall tax package for individuals should help lift the burden on the household budget and relieve pressure on mortgage repayments,” he said.
Mr White also congratulated the federal government on its commitment to retaining the many taxation benefits of negative gearing, as well as keeping capital gains tax at current levels.
“Thousands of Australians will now be able to experience the benefits of investment property ownership, and as we’ve seen [yesterday] with most of the banks cutting rates after the RBA decision, the time is perfect for property purchasing.”
However, Mr White, who attended Treasury's budget lock-up on Tuesday, said uncertainty remains around how brokers will be affected by the $127 million in additional funding costs for ASIC.
“We already know where the money is going, with $61 million to be spent on enhancing data analytics and $57 million on boosting surveillance and enforcement,” he said.
“But the big question remains... how much will brokers have to pay for their licence each year to fund ASIC’s additional cost?”
