What the 2017-2018 Federal Budget Means for the Australian Housing Industry
The 2017-2018 Federal Budget was recently announced and spells good news for the Australian housing industry.
Two key elements of the agenda are housing affordability and infrastructure. Ideally, these new measures will stimulate private sector investment, make first home purchasing more attainable and address slow growth and demand issues.
Budget measures announced include:
- Establishing the National Housing Finance and Investment Corporation;
- Establishing $1 billion National Housing Infrastructure Facility
- Commitment to identify underutilised commonwealth land suitable for residential development;
- First Home Super Saver Accounts;
- Reducing barriers to downsizing;
- Tighter restrictions and additional taxes on foreign and temporary residents;
- Renewed commitment to the National Affordable Housing Agreement;
- Increasing the capital gains tax (CGT) discount for investors in affordable housing;
- Encouraging Managed Investment Trusts (MITs) to invest in affordable housing;
- Small changes to negative gearing or capital gains tax;
Steps are also being taken to ensure incentives are better aligned with improving housing outcomes, including assisting first homebuyers to build a deposit inside superannuation.
The Government will also provide additional funding of $375 million over the next four years as part of the new National Housing and Homelessness Agreement to fund front line services to address homelessness.
These measures are a positive step towards a brighter future for the Australian housing industry.
For more information on the 2017-2018 budget, visit http://budget.gov.au/
For budget information specifically pertaining to the housing industry: