The 2021/22 Australian Federal Budget dropped this week and there’s plenty of budget related info to digest. Billions has been spent on COVID-19 response and recovery, and there’s good news for aged care, women, and childcare. Enormous debit is a big talking point of the budget, with a deficit forecast heading towards 1 trillion dollars. In this blog we are focusing on some positive outcomes for our valued CLK clients as we review the broader budget impact on real estate. Listed below are our top three real estate stories from the week, including some positive news for regional homeowners.
Positive Budget News #1: Family Home Guarantee
The first bit of good news was the establishment of a Family Home Guarantee to allow single-parent families to purchase a home with a deposit of as little as 2 percent.
Positive Budget News #2: New Home Guarantee
In more good news about an expansion of the New Home Guarantee scheme, an additional 10,000 places will be created. This builds on the success of the program’s first year and will allow first home buyers seeking to build a new home or purchase a newly built home to do so with only a 5 percent deposit.
Positive Budget News #3: First Home Super Save Scheme
An increase in the First Home Super Save Scheme will see the maximum amount of voluntary contributions which can be released under the scheme lifted from a $30,000 cap to $50,000.
More Positive Budget News
Building Better Regions
Federal Treasurer Josh Frydenberg revealed $250M will be allocated to regional community infrastructure projects under the Building Better Regions Fund, which will create more jobs for regional people. He stated that ‘regional Australia will never be taken for granted’,
The budget also announced 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 – good news all round. This scheme was previously only available to Australians over the age of 65.
For the full Australian Government Budget Papers visit the website here.