Federal Treasurer Scott Morrison’s second budget was delivered this month to Australia, with a range of changes for first home buyers, property investors and older Australians looking to downsize. Overall, the measures are designed to free up more development land and get first home buyers into the market sooner. Here are the highlights relating to the property market.
A lending hand for first home buyers
From 1 July, first home buyers able to salary sacrifice extra contributions into their superannuation account up to a maximum of $30,000 in total and $15,000 in a single year.
From 1 July 2018 onwards, the ‘First Home Super Savers Scheme’ will allow first home buyers to withdraw that cash, along with any associated earnings. Under this plan, it’s proposed first home savers fast-track their savings by at least 30 per cent.
Tighter rules for foreign property investors
Overall, foreign investors are negatively impacted in the Budget package through a number of tighter restrictions, which came into effect last night. These include:
Freeing up more properties through encouraging empty nesters to downsize is at the heart of the Federal Government’s plan.
From July 1, 2018, people aged 65 and over will be able to make a non-concessional contribution of up to $300,000 from the sale of their principal residence into their superannuation, provided they have lived there for at least 10 years.
In 2016, Ray White drove a successful education campaign, highlighting the value negative gearing provides to our industry. Last night’s Budget announced that negative gearing will remain and while property management fees for agents will remain tax deductible, from 1 July:
Extra housing to stimulate growth
Addressing the housing shortage, the Federal Government will work with states and territories to reform planning and zoning laws, opening up more Commonwealth land for development, and establishing a $1 billion National Housing Infrastructure Facility.