Rateseeker Business News Round-up July 2023
As we pass mid year, the biggest news this month covers a few interesting changes across the finance and property sector.
The Reserve Bank of Australia (RBA) reveals a series of reforms, in response to an independent review commissioned by the federal government to provide a more comprehensive approach to monetary policy.
Existing HomeBuilder applicants have also been given a 2 year reprieve with submissions of supporting documents officially extended to 30th June 2025, although only applicable to those who have received formal approval under the scheme.
Good news for homebuyers, as property listings increase, vendors are accepting reduced prices as competition increases. SQM research reported an increase of 1.6% in new listings in June than the previous month.
Preparing your tax return can. be a stressful and confusing time, however the Australian Taxation Office (ATO) has advised any who need help to seek assistance from its digital self-help tools.
Introducing Progressive Reforms by the Reserve Bank of Australia (RBA)
Responding to an insightful independent review commissioned by the federal government, the Reserve Bank of Australia (RBA) is set to embark on a series of forward-looking reforms, shaping the future landscape of monetary policy and communication.
Effective from 2024, the RBA board’s approach will evolve with a focus on enhanced efficiency and strategic depth. The number of annual meetings will be optimised to eight, fostering a deliberate and thorough assessment of the cash rate – a departure from the existing count of 11.
These extended gatherings will provide an opportune platform for comprehensive deliberations on monetary policy strategy, risk evaluation, alternative policy avenues, and nuanced communication strategies. Importantly, each board member will engage with a broader spectrum of RBA staff ahead of meetings, enabling a holistic perspective in the decision-making process.
A notable addition to this transformative paradigm is the governor’s commitment to holding media conferences following each cash rate meeting. This commendable shift ensures a timely and transparent avenue for elucidating the board’s determinations and engaging with pertinent inquiries. Such open discourse underlines the RBA’s dedication to fostering clarity and understanding in financial markets and among the public.
Concurrently, the federal government’s decision not to extend Governor Lowe’s term has set the stage for an impending leadership transition. As Governor Lowe’s term concludes in September, the esteemed Michele Bullock, presently serving as deputy, will ascend to the position. This transition underscores the RBA’s commitment to seamless continuity and prudent leadership in its pivotal role in Australia’s financial landscape.
Ultimately, the RBA’s innovative reforms signify a bold stride into a future of refined monetary policy, transparency, and agile leadership. As the world watches, Australia’s economic trajectory is poised for even greater prosperity underpinned by sound strategies and insightful communication.
HomeBuilder Supporting Documentation Deadline Extended to 30 June 2025
Great news for existing HomeBuilder applicants! The submission deadline for crucial supporting documentation has been officially extended until the 30th of June, 2025.
Formerly set at the 30th of April, 2023, the federal government proposed an extension in March, contingent upon the endorsement of states and territories. This assent has now been secured, affording a lifeline to those who had previously obtained formal approval under the HomeBuilder scheme for off-the-plan acquisitions or renovations.
No action is required on the part of the applicants to access this extension – it will be seamlessly implemented. The motivation behind this extension lies in offering support to individuals who had ventured into financial commitments, banking on the grant they had secured. Unfortunately, due to unforeseen supply constraints and construction industry delays beyond their control, they were unable to capitalise on the grant within the original timeframe.
HomeBuilder applications ceased in April 2021, with states and territories overseeing the scheme’s administration on behalf of the federal government. This extension signifies a compassionate approach to cater to the unique challenges faced by homeowners during these unprecedented times.
Easing the burden for those who embarked on this path, the extended deadline acknowledges the broader circumstances that may have impeded the timely utilisation of the grant. As we navigate the evolving landscape, HomeBuilder continues to stand as a pillar of support for homeowners across the nation.
Are you looking to build your own home and need a construction loan? Get in touch with our loan experts today and we can help provide you with a variety of options from a wide range of lenders.
Vendors reduce prices as property listings are on the rise
In a promising development for prospective buyers, the real estate landscape is witnessing a notable upswing in available properties for sale, accompanied by an expansion in the overall inventory of properties on the market.
According to the latest insights from SQM Research, June brought forth encouraging figures as the number of fresh property listings, defined as those listed within the last 30 days, observed a 1.6% increase compared to the preceding month.
Concurrently, the encompassing tally of properties offered for sale, encompassing both newly listed properties and those with a longer presence on the market, saw a robust 1.8% uptick compared to the previous month.
These upward trends not only paint an optimistic picture for potential buyers seeking an extensive array of options but also hint at a dynamic and evolving real estate sector. As the market continues to exhibit these encouraging signs, buyers are presented with a broader selection, allowing for more informed and deliberate property decisions.
In a landscape where choice is a paramount factor, the recent rise in listings fosters a competitive environment, offering buyers the advantage of exploring a diverse range of offerings and potentially discovering the ideal property that aligns with their preferences and aspirations.
In conclusion, the surge in property listings indicates a positive trajectory for the property market, signifying a vibrant and evolving landscape that benefits both buyers and the industry as a whole. As the market expands its horizons, buyers can look forward to a more enriched and well-informed property journey.
Need a sharper rate on your loan? Get in touch with our team today and find out how we can help reach your mortgage goals.
Simplify your tax return with ATO’s digital self-help tools.
Navigating the intricacies of tax returns need not be perplexing anymore, thanks to the Australian Taxation Office’s (ATO) comprehensive digital self-help resources. Striving to enhance user convenience, ATO Chief Service Delivery Officer David Allen recommends harnessing these tools to streamline your tax-related queries.
The ATO’s official website acts as a treasure trove of invaluable information, providing tailored insights into the latest tax-time updates for individuals and tax professionals alike. Furthermore, a virtual assistant named ‘Alex’ stands ready to guide you through the maze of information, ensuring you find what you need effortlessly.
Experience the power of digital transformation with myTax and the ATO app – dynamic tools engineered to respond to your inquiries and facilitate specific account actions. Seeking camaraderie and shared knowledge? The ATO Community, a dynamic online peer-to-peer platform, awaits your exploration.
Fast-tracking efficiency, online tax returns are now processed within a span of up to 14 days, granting you swift access to the outcome of your financial endeavors.
Seize the reins of your tax journey with ATO’s cutting-edge digital resources. Simplify, empower, and conquer – it’s your time to navigate the tax terrain with confidence.
If you’re looking to borrow for a new home or your fixed term period is ending soon and you’re looking to give your home loan a health check to get a sharper rate, get in touch today. We’ve helped countless Aussie households save thousands in the long term.
** General Advice Warning
The information provided on this website is general in nature only and it does not take into account your personal needs or circumstances into consideration. Before acting on any advice, you should consider whether the information is appropriate to your needs and where appropriate, seek professional advice in relation to legal, financial, taxation, mortgage or other advice.