Property wins for this budget
Budget time! Every year we wait to hear the list of winners and losers of the Federal budget. So, what’s in store for property owners and investors – winning or losing, let’s see.
On the face of it, the real estate sector is set to benefit from post pandemic spending. Our treasurer Mr. Frydenberg has declared the Australian economy is recovering well.
“Over the last 12 months, the Australian economy has outperformed all major advanced economies around the world,” he noted.
“But the job is not done. There is still more to do. Australia is still in the midst of a global pandemic.”
In good news, Australia’s economy is forecast to grow by 4 ¼% in 2021 -2022. Unemployment is expected to reduce to 5% in 2021-2022 and hit 4 3/4 % by 2022-2023. There is also a ‘likely’ assumption the Australian vaccination program will be achieved by the end of 2021.
So, things aren’t looking too bad, but it’s important to protect our growing industries and money spinners.
With housing now worth more than $8 trillion — or four times the size of Australia’s GDP — it’s no surprise that there are several measures in place to ensure the continued security of Australian property.
On the topic of housing and small business, the Treasurer stated that under the Coalition, home ownership will always be supported.
So, what are the key spending promises and policies from this budget?
The establishment of a Family Home Guarantee
Designed to help single-parent families to purchase a home with a deposit of as little as 2 per cent. An amazing initiative.
Expansion of the New Home Guarantee
An additional 10,000 places in this 5 per cent deposit scheme will be created, to bolster the success from the program’s first year.
An increase to the First Home Super Save Scheme
This will see the maximum amount of voluntary contributions, which can be released under the scheme lifted to $50,000 from the previous $30,000 cap.
Other key measures designed to support Australian property and the real estate sector include:
Building Better Regions
Mr. Frydenberg revealed $250 million will be allocated to regional community infrastructure projects under the Building Better Regions fund.
Australians over the age of 60 will be able to contribute up to $300,000 ($600,000 for couples) into their superannuation if they downsize their home. It’s expected this will free up more housing stock for younger families. This scheme was previously only available to Australians over the age of 65.
The government is spending $10 billion over 10 years on a number of infrastructure projects, including:
- $2 billion initial investment for a new Melbourne Intermodal Terminal for the transfer of freight.
- $2.03 billion for Great Western Highway Upgrade (Katoomba to Lithgow) construction of east and west sections in NSW.
- $400 million for Inland Freight Route (Mungindi to Charters Towers) upgrades in Queensland.
- $161.6 million for the Truro Bypass in South Australia.
- $160 million for Agricultural Supply Chain Improvements – “Package 1” in Western Australia.
- $150 million for National Network Highway upgrades (Phase 2) in the Northern Territory.
- $80 million for Bass Highway safety and freight efficiency upgrades in Tasmania.
- $26.5 million for William Hovell Drive duplication in the ACT.
How can I access these benefits?
You’ll be able to see if you’re eligible for any of the new benefits online, but if I can support you, please reach out. I’d love to help you buy a new home, townhouse, villa, apartment or block of land.