This week’s Federal Budget seems to have something for everyone, and the property industry didn’t miss out. There were several measures announced that will help families, first home buyers and downsizers in different ways. Some of these include:
The establishment of a Family Home Guarantee:
This measure will allow single parents with dependent children to purchase a home with a deposit of only 2 per cent. There will be 10,000 places offered across the next 4 years.
Continuation of the New Home Guarantee
An additional 10,000 places in this scheme will be offered following the success of the program in FY 20/21. This scheme helps first home buyers build or purchase a new home with a deposit as low as 5 per cent.
Extension of HomeBuilder construction commencement period
The Homebuilder program has been hugely successful, which is adding to an already busy and backlogged building & construction industry. With supplies like timber, metal and other building products facing price hikes or short supply, in response the Government has announced a 12 month extension to the 6 month commencement period of already contracted works in order to smooth out the congestion. Building works under the HomeBuilder scheme will now have an 18 month construction commencement period.
Increase to the First Home Super Savers Scheme
Starting 1 July 2022, this will see the maximum amount of voluntary contributions released under the scheme increased from $30,000 to $50,000, which helps first home buyers save for a home.
It was announced that Australians over the age of 60 who downsize their family home are now able to contribute $300,000 ($600,000 for couples) to superannuation. Previously, the scheme was available to those aged over 65 and this measure is intended to free up more housing stock for younger families now that this age threshold has been lowered.
These measures that are directly targeted at the property industry, combined with a range of other spending efforts on infrastructure and an extension of the low and middle income tax offset will also help to build confidence and increase household spending to boost our economy.
For more detailed information, please visit the official Government website here.