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The Federal Budget & the Housing Market: What you need to know

We’ve outlined some of the key aspects announced in the 2021 Federal Budget in relation to the housing market. You can thank us later.

1. Introducing the Family Home Guarantee Scheme

What is it?
The Government is providing a pathway to home ownership to support single parents with dependants, regardless of whether they are a first home buyer or a previous owner-occupier. 
From 1 July 2021, 10,000 guarantees will be made available over four years to eligible single parents with dependants to build a new home or purchase an existing home with a deposit of as little as two per cent, subject to an individual’s ability to service a loan.
 
Find out more:
 

2. Expanding the New Home Guarantee Scheme

What is it?
Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase or build a new home with a deposit of as little as 5 per cent (lenders criteria apply).
 
What’s changed?
An additional 10,000 places in the scheme will be available for the 2021-22 financial year from 1 July 2021.
 
The catch:
Existing properties are not eligible for the scheme.
 
Find out more:
 

3. Enhancing the First Home Super Saver Scheme (FHSSS) 

What is it?
The First Home Super Saver Scheme (FHSSS) was first introduced as part of the 2017-18 federal budget, and allows first home buyers to make voluntary contributions to their superannuation funds (including before-tax contributions, like salary sacrifice and after-tax contributions), which can later be withdrawn to put towards a house deposit.
 
What’s changed?
The maximum amount of voluntary contributions that can be released from the FHSSS will increase from $30,000 to $50,000, effective from 1 July 2022. This is in acknowledgement that house prices have soared.
 
This means what?
First-home buyers can get as much as $10,000 in tax breaks from the government towards their first home deposit. Because there is a tax break for pushing the money through the super system, buyers keep more of their own cash than if they had saved it in a bank account.
 
Find out more: 
 

4. Changes to Downsizer Super Contribution

What is it?
Retirees, or people not far off retiring, will be able to make a post-tax contribution of up to $300,000 per person ($600,000 for couples) when selling their family home, and downsizing, in an effort to free up housing stock for younger property aspirants.
 
What’s changed?
From 1 July 2022, the minimum age for the downsizer contribution will be lowered from 65 to 60, allowing Australians nearing retirement to make a post-tax contribution of up to $300,000 per person when they sell their family home. 
 
Find out more:
 

5. HomeBuilder – Extension to Construction Commencement

What is it?
HomeBuilder has been a highly successful program, supporting construction activity and jobs. Over 120,000 Australians have applied for the HomeBuilder grant, which is expected to support over $30 billion in residential construction activity.
 
What’s changed?
Whilst Homebuilder applications closed on 14 April 2021, the 6 month construction commencement period has been extended to 18 months for all existing applicants, which will smooth out the HomeBuilder construction activity in 2021 and into 2022.
 
Find out more:
 
Other aspects which might be of interest to home buyers include: 
 
  • $110 billion in infrastructure commitments over 10 years, making outer suburbs and regional areas more accessible
  • $250 million in regional projects
  • An extension of the low-to-middle-income tax offset (LMITO), which will return up to $1080 per year per taxpayer
 

 

NT BUDGET 2021-22

Overview

  • Funding for planning and support of new infrastructures has been allocated
  • A public housing complex will be redeveloped
  • $68M will be spent on major capital works for housing and amenities in Greater Darwin

 

1. 5000 new homes in Holtze and Kowandi

 $15m will be invested over the next five years to grow the Territory’s population, including 5000 homes in the new suburbs of Holtze and Kowandi, near the city of Palmerston. 
 
“By boosting the number of lots in the pipeline for residential development, we can support responsible growth over the next decade and beyond, and get ahead of any growing pains,” Mr Gunner said.
 
Relevantly, the homeowner assistance schemes have been extended with the aim of assisting Territorians with home ownership.
 
Find out more: 
 

2. BuildBonus grant has closed

The BuildBonus grant closed on 14 April 2021. 
 
Find out more: 

 

3. Changes to Territory Home Owner Discount (THOD)

The Territory Home Owner Discount will cease on 30 June 2021. This means it will no longer be available for contracts of sale entered into on or after 1 July 2021.

If you're a home buyer in the Northern Territory (NT), you may be eligible to get up to $18,601 off stamp duty until 30 June 2021.
 
You must be
  • Building or buying a home
  • buying vacant land to build a new home.
  • land to build a new home in the Northern Territory (NT).
  • The home must also be $650,000 or less and be your principal place of residence for at least six months.

Find out more:

 

4. NT First Home Owner Grant

From 7 May 2019, if you are buying or building a new home, you can apply for a First Home Owner Grant (FHOG) of $10,000.

Find out more:

 

More Information

  • Check out the Federal Budget here
  • Check out the NT Budget here
  • Get in touch with your accountant to for further information
 
In the meantime we’ll continue to keep abreast of any new changes that may apply to you and your investment.
 
Absolute Real Estate
08 8930 6600
hello@absolutent.com.au

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