Tax cuts increase borrowing power but could fuel inflation, property prices
Home buyers will be contemplating more expensive property purchases with their increased borrowing power, while mortgagees will be hoping to bolster their loan repayments, with the Stage 3 tax cuts coming into effect.
Tax cuts may feel like a financial new year gift but could come with a sting in the tail. (Image source: Shutterstock.com)
As the new financial year begins, millions of Australians will be feeling a sense of mild relief that they have received a cut to their tax rate.
But as well as having an average of $1,888 extra on their annual income statement, for many Australians it will be welcomed for another reason.
For home buyers, the Federal Government’s Stage 3 tax cuts are set to receive a boost in borrowing power. Those already on the property ladder could slice yea…
