5 million+ struggle with mortgage payments

New nationwide research released by ASIC’s Moneysmart reveals that 47% of Australian adults with debt, the equivalent of 5.8 million people, have struggled to make repayments in the last 12 months.

Alarmingly, the research revealed that more than half surveyed, said they are not aware that they are entitled to ask their bank or lender for financial hardship assistance and just one in five said they had ever sought financial hardship assistance. Around 30% also stated that they would not seek a hardship assistance arrangement from their bank or lender and instead sell assets or get a second job rather than talking to their bank.       

What’s changing on 1 July 2024?

Here’s a summary of the key changes coming into effect on 1 July 2024:

·     Tax cuts reduce personal income tax rates and change the thresholds.

·     Superannuation guarantee increases from 11% to 11.5% - check the impact on any salary package arrangements.

·     Superannuation caps increase from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions.

·     Luxury car tax threshold increases to $91,387 for fuel-efficient vehicles and $80,567 for all others.

·     Car limit for depreciation increases to $69,674.

·     $300 energy relief credit for households comes into effect (credited automatically quarterly).

For business

·     $325 energy relief credit for small business commences (for small businesses that meet the relevant State or Territory definition of a ‘small customer’).

·     $20k instant asset write-off extended to 30 June 2025 (subject to the passage of legislation).