Australia's Stage 3 tax cuts abolish the 37% bracket and drop the top rate from 45% to 30%, adding roughly $10,000 per taxpayer. Banks may loosen lending criteria based on higher disposable income, potentially boosting property demand.
Now, with the stage 3 tax cuts, basically what's going to be happening is that they're abolishing the 37% tax bracket completely. What that's going to do is that for the average person, it's going to put almost another $10,000 net income in their back pocket. Yeah. So that $45,000 to $200,000 bracket is going to be dropped to a 30% tax bracket. And so it's going to wind up putting some money back in people's back pocket. What that is going to do is going to increase people's cash flow, but it's also going to help to increase some serviceability along the way. As long as banks kind of pass that on as part of their serviceability criteria. So that's one of the big things that we are looking out for as well, which could potentially have a significant outlook on the property market as well. Again, just bring some more money in people's back pockets.
