Victorian Budget 2023 impacts
The Victorian state budget for 2023-2024 has both positive and negative measures for taxpayers. It is also geared towards helping the government repay its COVID-19 debt, and as a result, measurements are made, and they have a significant impact on several industries and financial plan holders.
In this article, we will outline the major measurements made, their impact to different key Australian demographics and their impact:
Family Homeowners – Generally Positive
The budget includes positive measures for family homeowners and first home buyers. There will be a new first homebuyer grant program with a $250 million investment, making it easier for you to buy your first home. Additionally, a $100 million investment in a home renovation grant program will support home improvements.
However, there is a temporary increase in stamp duty on residential property purchases over $1 million, which may have a negative impact on family homeowners or those with a single mortgage. This increase in costs should be considered when planning your repayment budget.
Small Business Owners – Generally Positive
For small business owners, the budget has mixed implications. On one hand, there are investments in new resources and support, such as a $50 million small business accelerator program and a $10 million small business grants program.
On the other hand, changes to WorkCover means further increased operational costs.
Older Victorians – Positive
The budget aims to improve the quality of life for older Victorians with a $250 million investment in an aged care reform package and a $100 million investment in a seniors’ transport program. These measures should positively impact your quality of life as an older individual.
High-Income Earners – Generally Negative
High-income earners may experience negative effects due to increased taxes. A temporary payroll tax surcharge of 0.5% for businesses with national payrolls over $10 million and a temporary increase in stamp duty on residential property purchases over $1 million will increase their tax burden.
The temporary increase in stamp duty on residential property purchase over $1 million dollars also negatively impacts higher incoming earners looking to purchase a home in the near future.
However, the payroll tax-free threshold will be raised from $700,000 to $900,000 from July 1, 2024, providing some relief for high-income earners.
Property Investors – Negative
Property investors may face challenges with the budget’s measures. The temporary increase in stamp duty on residential property purchases over $1 million and the lowering of land tax threshold from $300,000 to $50,00 will significantly increase the cost of maintaining a property.
What Should I Do Next?
If you are concerned about how the budget may affect you or to explore how to mitigate the impact of the budget has already affected you, please do not hesitate to contact your financial advisor.
We can help you understand the budget’s impact and discuss your options to protect, secure and ensure the long-term growth of your wealth.
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If you are a client of The Hopkins Group, we encourage you to speak to your THG financial advisor directly. To book a meeting with your THG adviser, please click the link.
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