Take a look at how the real estate sector is set to benefit from Josh Frydenberg and Scott Morrison’s post-pandemic spending statement released yesterday.
While introducing the Budget to the House of Representatives, Josh Frydenburg said “in the face of a once-in-a-century pandemic, the Australian spirit has shone through”.
The Treasurer went on to say the budget “is about the Australian people, about guaranteeing their essential services, about creating more jobs and keeping Australians safe from COVID-19”.
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.
Real estate incentives
Mr Frydenberg said the construction industry was booming courtesy of initiatives like HomeBuilder.
“New house starts are at their highest levels in 20 years,” he said, while first home buyers are at their highest level in more than 12 years.
Further housing measures in this year’s budget include:
- The extension of the New Home Guarantee – which will help an additional 10,000 people purchase their first home with as little as a five per cent deposit.
- The Family Home Guarantee – which is targeted at single parents with dependents and allows them to purchase a home with as little as a 2 per cent deposit.
- Expansion of the First Home Super Saver Scheme – Which allows first home buyers to withdraw up to $50,000 from voluntary superannuation contributions to put towards a property (up from $30,000 previously).
“Home ownership will always be supported,” Mr Frydenberg stated.
The budget documents also reveal a number of other key measures designed to support Australian property and the real estate sector.
Building Better Regions
Stating that “regional Australia will never be taken for granted”, Mr Frydenberg revealed $250 million will be allocated to regional community infrastructure projects under the Building Better Regions fund, which Mr Frydenberg said will create more jobs.
Mr Frydenberg has revealed that Australians over the age of 60 will be able to contribute up to $300,000 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 Treasurer confirmed the government is spending $10 billion over 10 years on a number of infrastructure projects.