How the 2025 Federal Budget Could Boost Your Borrowing Power
How the 2025 Federal Budget Could Boost Your Borrowing Power
If you’re planning to buy, build, or refinance to find your own budget savings in 2025 — the latest Federal Budget may have given you more of an edge than you realise.
While most of the headlines focused on cost-of-living relief and economic forecasts, there are several Budget updates that could directly (and quietly) help you strengthen your financial position and borrowing power. Here’s what you need to know:
1. More First Home Guarantee Scheme Spots & Help to Buy Expansion
- For eligible first-home buyers, the Government has extended the First Home Guarantee Scheme — opening up more places for 5% deposit loans without Lenders Mortgage Insurance (LMI).
- In addition, the Help to Buy Scheme is being expanded. This shared equity initiative allows the Government to contribute up to 40% of the purchase price for a new home (or 30% for existing homes), helping eligible buyers reduce the size of their loan and repayments.
Why it matters: This means lower upfront costs, reduced monthly repayments, and a faster pathway into the property market. LMI alone can add thousands to a loan, and avoiding it gives you a clear head start. The Help to Buy scheme also reduces your debt burden from day one — making homeownership more achievable for more Australians.
2. Stage 3 Tax Cuts
- From July 1, Stage 3 tax cuts are kicking in. For many Australians, this means more money in your pocket each pay cycle.
Why it matters: More take-home income can improve your serviceability when applying for a loan. Lenders assess how much you can borrow based on income vs expenses — so even a small bump can give you a stronger position.
3. Childcare and Energy Rebates
- Additional rebates for energy and expanded childcare subsidies mean many households could see a drop in regular outgoings.
Why it matters: Lower living expenses free up your monthly budget — which lenders take into account when assessing your ability to repay a loan. More room in your budget = more lending power.
4. Affordable Housing Investment
- The Budget allocated further investment toward building new affordable housing, particularly in key growth corridors.
Why it matters: These areas could become hotspots for first-home buyers or investors looking to get into rising markets early, often with better value and long-term growth potential.
5. Small Business & Self-Employed Support
The Budget includes further targeted relief for small businesses, especially those with annual turnover under $10 million. Key measures include:
- Tax administration simplification to reduce compliance burdens, including digital enhancements to ATO systems.
- Investment in small business support programs, providing access to low-cost advisory services and financial capability training.
- Continued funding for energy efficiency incentives to help reduce operating costs.
It’s important to note the Instant Asset Write-off has NOT been extended beyond 30 June 2025 and legislation is still pending for FY2025 (ie. extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025 is not yet law). It’s important to consider how this will impact your equipment upgrades. Your finance broker can help you make sense of funding solutions and business impacts.
Why it matters: These measures can help improve the financial position of self-employed individuals by lowering taxable income, increasing cash flow, and simplifying income documentation — all of which strengthen your profile when applying for finance.
What You Can Do Next:
If any of the above applies to you, now’s the right time to:
- Recalculate your borrowing capacity
- Review your budget with new tax and rebate figures in mind
- Explore lender options that best suit your personal situation
- Take early action while competition is still low
Need help making sense of it all?
Fill out the form below to book a quick call and we’ll walk through your options together.
Published: 26/3/25
THE FINEPRINT: The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. While all care and attention are taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.
Green Finance Group Pty Ltd ACN 145 035 221 is authorised under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192.
Would you like to know more?
Contact us
LATEST How the 2025 Federal Budget Could Boost Your Borrowing Power ARTICLE
"Green Finance Group wins record 25 finance awards in 6 months"
Meet the Author
“I’m committed to making finance clear and stress-free. With a focus on detail and genuine care, I take pride in turning complex lending structures into straightforward solutions and supporting my clients every step of the way.”
Christina Gonzalez
Finance Consultant - Brisbane, Gold Coast
Level 1 / 161 Robertson St, Fortitude Valley Qld 4006
Christina Gonzalez is a Brisbane-based finance consultant who works with borrowers to help find better home, business and car finance solutions from over 60 banks and lenders.
Before joining Green Finance Group in 2023, I spent over a decade in senior roles with Lloyds Bank (UK), Westpac and Bank of Queensland. This experience means I understand the lending process from both sides, giving my clients the edge when it comes to approvals, negotiations and navigating complex loan structures.