The budget has been largely well received with a goldilocks approach: by balancing policy measures across the forces of both supply and demand the budget is attempting to address affordability without causing shockwaves.
Here are some of the highlights, abridged – you’re welcome:
1 – Negative Gearing Saved: With a few fiddles. No more deductions for trips to inspect rental properties. Here is what we had to say on the topic of negative gearing while it was on the chopping block.
2 – Changes to Deductions for Depreciation: For properties purchased after budget night, there are limits to deductions for depreciation on items such as dishwashers, curtains, ovens etc.
3 – Helping Australians Save for their First Home: Despite the failings of the original First Home Saver Accounts, this idea had merit, it was just poorly executed. Let’s hope the 2.0 version announced on the budget might help people trying to get onto the property market and maintain demand in good lifestyle areas like ours.
4 – Give me Land: Federal land releases announce in the budget may help to keep up the pressure on State and Local governments to meet supply targets for new land, to meet population growth targets.
5 – Affordable Housing Solutions: Good news for many vulnerable groups in our community who live on the edge of homelessness or who face housing insecurity.
6 – Downsizing Concessions for Older Australians: It is a great start by #ScoMo but the burden of State stamp and transfer duties represents a significant and remaining hurdle to unleashing this stream of supply.
7 – Foreign Investment Appetite Curbed: The Plans to tax vacant homes with a ghost tax, limits on the share of foreign investment to new development projects and an increase of foreign investor duties may curb the appetite of foreign investors and free up property for the local market.
8 – Capital Gains Tax Breaks: A 60% CGT discount available for investment in affordable housing.
To read more detail of the budget dissected for property, see our own Sarah Bell’s coverage of #Budget17 here.