Thanks to Government Tax Incentives, millions of Australian residents may be eligible to redirect large portions of their taxable income to either pay off Mortgages faster or bolster their Superannuation.
With Australian mortgage debt increasing by 600% over the last 30 years, and increased pressure on the welfare system, the Australian Government are offering enticing incentives for full-time Australian workers to help reduce retirement debt.
Full details & qualification criteria below…
According to the Australian Bureau of Statistics (ABS), the average Australian mortgage is around $388,100. But this figure doesn’t reflect the ‘true cost’ of the mortgage for the home owner…
The general rule of thumb (you may be unaware of) is that you will traditionally pay almost double the purchase price of your home to your lendor, by the end of your mortgage term.
This means with an interest rate of 4.55% (the current rate offered by The Commonwealth Bank), the interest repayments will account for an additional $262,365!
Meaning the total cost for this home is actually $650,456.
That’s around $2169 a month, or $26,028 a year (for 25 years) to own the average home in Australia.
For most Australians, this is somewhere between 20-40% of their pre-tax income just to keep a roof over their head…In laymen’s terms, this means you’ll work 3 months every year, just to pay back the banks for your loan.
But before this happens, the ATO will take on average between $11,047 – $63,097 of your personal income in taxes – leaving a huge dent in your household cashflow.
That means, Australians are sacrificing another 3 months (and 20-25% of their total earnings) just to pay the taxman.
Meaning between a mortgage and paying tax, this can cost you up to 60% of your working income…without putting food on the table, fuel in the car, paying for power or any other life expenses.
If this wasn’t bad enough?… What it’s doing to the economy is the scariest part of all,
‘Average mortgage debt among older Australians has blown out by 600 per cent since the late 1980s after accounting for inflation, the study says, and nearly half of all homeowners aged 55 to 64 are still paying off a mortgage, up from just 14 per cent 30 years ago.’ – ABC News
This inability to pay off a mortgage, is not only costing Australians tens-of-thousands in unnecessary interest, but is also putting huge pressure on the welfare system.
Not to mention the damage this financial burden is having on families! both now and into their retirement.
The sad fact is, around 90% of baby boomers expected to rely on some form of pension during their retirement years – just to survive financially.
This pressure has been the catalyst for the introduction of Government incentives, geared at reducing the extreme debt levels of Australian residents.
These incentives allow both homeowners & renters to better secure their retirements, by redirecting the bulk of their taxes you don’t get back at the end of the year, towards areas that benefit you now (such as reducing mortgage debt, or adding to retirement funding).
The outcome is that Australian residents are able to pay off their home loans up to 15 years faster – saving themselves thousands of dollars in interest & tax repayments
While these incentives are available for most Australians who are working full time between the ages of 30-60, you may or may not qualify based on your personal circumstances.
Find out if you are eligible in under 60 seconds using our free online calculator
This is a free, no-obligation service and all information is kept securely. If you qualify, we provide all relative information necessary to take advantage of to you completely free of charge.
‘ATO data suggests up to 2,097,392 Australians may already be eligible for these tax reductions, with that number set to increase in 2020…’