Australia’s Stage 3 tax cuts, set to take effect from July 1, are designed to reduce the amount of tax people pay, increasing their take-home pay. This increased take-home pay has a direct impact on borrowing capacity, particularly for home loans. When people pay less in taxes, their disposable income rises. Banks and lenders consider this higher disposable income when determining how much they can safely lend to a borrower. With more money available after taxes, individuals can demonstrate a greater ability to repay a loan, thus qualifying for larger…
