The Federal Government will give first home buyers a helping hand by implementing a range of measures designed to allow them to enter the property market sooner.
Treasurer Scott Morrison announced a number of initiatives in the Federal Budget tonight.
First home buyers will be able to to salary-sacrifice into their superannuation, taxed at a lower margin, to save for a home deposit.
They will be able to contribute a total of $30,000 into their super, on top of compulsory contributions, or $15,000 per year.
The Treasurer also announced incentives to encourage older Australians to downsize and confirmed a tax of $5,000 per year will be imposed on foreign investors with vacant properties.
But not all young people will be celebrating.
As predicted, students have been hit hard and will have to start paying back university loans at a lower income threshold.
The most significant announcement affecting Penrith was that up to $5.3 billion will be committed to build Badgerys Creek Airport, with construction work to commence next year.
The Government announced it will increase the Medicare Levy from two per cent to 2.5 per cent of taxable income from July 1, 2019 to fund the National Disability Insurance Scheme.
Exemptions will only apply if your income is below the threshold of $21,655 for singles, $36,541 for families and $34,244 for pensioners.
In his highly anticipated Budget speech, Mr Morrison acknowledged times have been tough but said positive signs are ahead.
“Small business owners have gone without to keep their businesses open. Australians have taken second jobs, where they can, so bills can be paid,” Mr Morrison said.
“And it’s been a fair while since most hardworking Australians have had a decent pay rise.
“I know this has put real pressure on Australians and on their families. Terribly, this has meant some families have even broken apart.
“I believe, though, that we are now moving towards the end of this difficult period.”
On Facebook, Lindsay MP Emma Husar said many locals will be paying more tax as a result of the Budget measures.
“If you earn $65,000 per year you’ll pay $325 more each year in tax,” the Labor MP posted.
“If you earn $1 million per year you’ll pay $16,400 LESS per year in tax. And then they had the audacity to use the word ‘fair’.”
Troy Dodds is the Weekender’s Managing Editor and Senior Writer. He has more than 15 years experience as a journalist, working with some of Australia’s leading media organisations.