The recent budget set out by the Australian Government contains a number of measures that could have a significant impact on the housing market across Australia, and particularly in Sydney and other major cities where affordability has become a serious issue for many.
According to the Government, the plan that it has put forward will improve outcomes across the housing spectrum – from the homeless and those who depend on social housing, to first home buyers and older Australians looking to downsize.
One such measure aims to support home ownership by allowing first home buyers to build a deposit inside their superannuation and to access tax concessions to build more savings faster.
With effect from 1st July this year, Australians will be able to contribute up to $15,000 per year in voluntary contributions, up to a total of $30,000 that can be withdrawn for a first home deposit. Withdrawals will be allowed from 1st July 2018. Couples will be able to both access the scheme and combine savings for a single deposit.
Other measures introduced through the budget include:
- Helping to free up larger homes for younger families by allowing older Australians considering downsizing to contribute up to $300,000 from the sale proceeds of their home into superannuation as a non-concessional contribution. This will come into effect from 1st July 2018.
- A commitment to boosting the supply of housing by working with state and territory governments to set housing supply targets and facilitate planning and zoning reform.
- Imposing an annual charge of at least $5,000 on foreign owners of residential real estate where Australian residential property is not occupied or genuinely available on the rental market for at least six months of the year.
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Sources:
http://sjm.ministers.treasury.gov.au/media-release/046-2017/