Who do I vote for? A quick guide to the Federal Election

With the federal election fast approaching, there is one thing on everyone’s mind as we head to the polls on May 18... who do I vote for? With policy back-flips, leadership spills, impending tax breaks and tax increases, it’s almost impossible to get a clear idea of who is doing what, for who and when.

What about the financial services sector, will I still be able to get a loan?

No bank wants to be the first to get in trouble from regulators, so they have and will continue to impose stricter lending standards on home loan applications, making it harder for Aussies, like you, to access home loans.  

The Coalition continues it’s fight with the big banks and financial misconduct, enhancing the responsibility and funding of industry regulators to better protect consumers.

Labor will tax the big banks and introduce a $160 million per year banking fairness fund and they will double the amount of financial advisors that are accessible for Aussies.

With the housing market declining - is now the time to invest?

Housing prices continue to drop across Australia, impacting homeowners, renters and investors. In the Coalition’s federal budget, there are no changes to negative gearing or the capital gains tax - two key incentives for property buyers.

But there is a gap. To improve property prices, we need more investors. Investors are key to the revival of the housing market, and the Coalition’s lack of incentive for Australian’s to get into the property market could further hurt house prices.

In its defense, the Coalition is pledging a $100 billion investment into transport infrastructure which will create new investment opportunities in areas with improved roads and public transport.

Now to Labor’s position on housing... Labor’s proposed changes will limit negative gearing to new investments only and will halve the capital gains tax discount. This is one of the hottest topics leading up to the election with Citibank Australia claiming that Labor’s policy could “accelerate the cyclical weaknesses in housing prices”, similar to what we saw when negative gearing was abolished in 1985. So, why the change?

Labor claims that the current arrangement benefits high-income earners and prevents first home buyers from entering the property market. Labor’s‘ plan for housing affordability’ will limit the tax breaks for investors, and drive investments away from established urban areas and into new housing developments. Some predict this will increase housing supply, and create more jobs in growing communities, while others predict a crash

As you can see, there are pros and cons for each policy from both political parties. Before heading to the polls on May 18, take extra time to weigh up your options and decide which policies will work best for you. It’s a big decision, but rest assured, we are all in the same boat!

Source - Loanmarket