Markets15 May 20215 min read
May 2021: the 2021–22 Budget and the LMITO extension
The Federal Budget extended LMITO for another year and added $7.8 billion in tax offsets. The borrowing-capacity tailwind kept blowing.
What the Budget did for investors
Extending LMITO meant an additional $1,080 in after-tax income for most middle-income investors, on top of the Stage 2 cuts. Combined with sub-2% fixed mortgages, household borrowing capacity reached its highest real level in twenty years.
APRA's silence
Through May the Council of Financial Regulators kept signalling 'no macroprudential action needed'. That silence was the loudest buy signal of the year. APRA's first move came in October.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.