Housing affordability was a key issues in the lead up to the Federal election. The new Government has a range of policies that will assist first home buyers to enter the market and also increase the supply of low cost rental properties.
The ‘First Home Saver Account Scheme’ is aimed at helping home buyers save a deposit by providing preferential tax treatment on the savings. The minimum savings period will be for four years and withdrawals from the accounts will remain tax free if used for an eligible first home purchase.
Another policy commitment was the ‘National Rental Affordability Scheme’. This scheme will see the Government provide a financial incentive, suggested to be $6000 tax incentive to investors willing to rent their property at 20 per cent less than the prevailing market rate in the relevant area.
The ALP have also committed to a Housing Affordability Fund, which will see funds used to invest in local infrastructure for new housing estates. This will help to ease the levies and taxes that are passed on to home buyers for properties in newly developed neighbourhoods.
The release of land currently owned by the Federal Government was also promised during the election campaign. Lack of available land has been identified as a contributing factor to declining affordability. Therefore land released by Government will play some part in addressing the supply issue.
To ensure greater cooperation between the federal, state and local governments it is important that the new Government appoints a Federal Housing Minister to the Cabinet. This will provide a vehicle for all sections government to work towards developing solutions that will provide meaningful outcomes.
The REIV looks forward to greater detail on these policies and their implementation.
Article Provided by The real Estate Institute of Victoria
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