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?