The Federal Budget | How will it affect the property market?

Probably the biggest single measure announced in this year’s federal budget that affects the property market, was the worst kept political secret.  The First Home Buyer Boost was always likely to be retained as the market evidence was that it had already had a marked affect on new building and renovation activity.

In summary the extension to the First Home Buyer Boost has been extended for a further 6 months (from 1 July).  For the 3 month period up to 30 September the payments to eligible applicants will remain unchanged.  From 1 October to 31 December the available benefit will halve.  This means that established home buyers will gain a benefit of $3,500, whilst those purchasing new homes will gain a benefit of $7,000.  (A number of States also announced concessions and benefit continuation in their own State budgets.)

The federal government announced a move to improve “building energy efficiencies” with a total of $50 million being announced in expenditure to create the Energy Efficiency Trust.

$22 billion in infrastructure projects were announced.  These include:

$2.6 billion for Education Infrastructure

$3.2 billion for Hospital infrastructure

Over $8 billion in infrastructure projects affecting major rail, road and ports around Australia

Other measures that will affect the property and construction markets include:

Changes to tax rates of non resident owners

Changes to the rules affecting Property Trusts

Changes to Capital Gains Tax provisions