Federal Budget 2017: What to expect for Australia's housing affordability
What are the government's plans to ease house prices and increase supply in Australia's hotly contested property market
Treasurer Scott Morrison will tonight deliver his second federal budget, and we’ll be keeping a close eye on what the government plans to implement to improve housing affordability and a supply shortage in the property market.
At a glance, this is what we know so far:
- First-home buyers will benefit from a new type of savings account that allows them to salary-sacrifice contributions towards a deposit from their pre-tax pay. They won’t be able to dip into superannuation, as was suggested earlier this year.
- Retired couples who downsize by selling their homes will be offered exemptions from new superannuation caps of $100,000 in after-tax contributions and $1.6 million in retirement accounts.
- A “ghost house tax” will be imposed on foreign investors who leave their properties vacant, a practice known as “land banking”.
- A “bond aggregator model” will enable loans to community housing associations at lower long-term rates to encourage investment.
- The Government has ruled out doing much to reduce demand, including changes to negative gearing or capital gains tax concessions.
Other notable announcements include: major changes to school funding, an increase to university fees by around 8%, changes to the pharmaceutical bebnefits scheme and a crackdown on welfare recipients with the proposed implementation of a driver style ‘demerit point’ system.
Expect a full breakdown on all proposed cuts and spending at 7.30pm tonight.
Will you be tuning in?