We just caught a glimpse of what is high on the government agenda as the Federal budget was handed down mid-October. Extended government assistance and strategies to boost affordable housing, Aboriginal home ownership, HomeBuilder and First home buyer grants are all at the centre of the government’s efforts to support the housing, and construction industries stimulate the economy, and we couldn’t be more pleased.
Three major housing-related measures were highlighted in Treasurer Frydenberg’s budget address: an extension of the First Home Loan Deposit Scheme (FHLDS), additional low-cost financing for affordable housing through National Housing Finance and Investment Corporation (NHFIC), and additional funding for the Indigenous Home Ownership Program.
Tax cuts are coming. Most Aussie workers will receive $1,000 or more in their bank accounts over the coming months as stage two tax cuts are backdated to July 1, 2020, meaning they’ll begin to be taxed less. Medium-income earners can expect $1,080 back, and those on higher incomes will see a permanent cut of $2,430 each year.
The First Home Loan Deposit scheme will also double its intake and support the building industry by applying to new builds, with the ongoing scheme estimated to bring $800m to our economy, stimulate housing and construction activity, and increase housing demand.
Other measures detailed in the budget papers included a proposed capital gains exemption for granny flats for eligible persons from July next year, and a continuation of funding for state social housing services.
These align well with the government’s recent plans to wind back responsible lending laws that have prevented many home buyers from obtaining finance. Together, we think these moves will these moves will enhance fairness and accessibility for people.
