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Writer's pictureJustin Cornock

Post Budget Roundup



Good Morning and Happy Tuesday!

Well its only 66 days till Christmas! Wait, what! Well that escalated quickly…


As we begin to emerge post budget and things start to trickle through the system in various forms. Canberra had what would seem to be a very quiet election. I’m not sure if it was the lack of democratic sausage sizzles or the ability to cast pre-poll votes on iPads or perhaps resignation to the fact that we will have another 4 years of Labor government. No surprise really, perhaps its no wonder there wasn’t a great deal of press.

There were plenty of articles in the last week that talked about the bleakness of the economy, with increasing business defaults in Sept, increasing unemployment.

However there is also plenty of good news, reduced tax rates, Instant asset write offs, First Home Loan deposit Scheme extension and increase in its caps and the launch of Australian business growth fund. This has been long spoken about with its announcement last year and with similar schemes operating in the UK and Canada. Whilst some of the details are yet to be cemented the fund will be available to business’ with revenue between 2 and 100 million. Eligibility will require business to show three years of growth and profitability with some allowances in place for COVID according to Kate Carnell. It will be interesting to see how it is implemented with the fund looking to be operational inn the first quarter of 2021. This was probably the most informative article I read about the fund……> Here

Rates didn’t really change this week, as expected the banks will hold now especially given the run to Christmas and 55 odd trading days to get there. The Christmas rush hasn’t changed how the banks are processing, with many stating clearly in their weekly updates that deals submitted at this point cannot be escalated. Even the lenders who were doing things very quickly have slowed with many at 18 + days to pick up a file from submission.

We can still get things done fairly quickly with Macquarie on both their asset leasing and residential lending. Both ANZ and NAB are hunting for business in their commercial spaces.

In other news I finished what is the first completed draft of my e-book ‘First Home buyers Guide to the Galaxy’ You can download this from my website.

If you have any questions or want to run any scenarios, reach out.

I hope you all have a cracking week!

JC

Scenarios and interest rates quoted above are suggestions and constitute general advice only.

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