Tomorrow’s federal election is likely to bring about a new approach from a Coalition government or the continued rollout of the current Labor government’s housing policies in the following key areas:
Housing Supply
Labor remain committed to their National Housing Accord target of building 1.2 million homes by 2029 as well as the continuation of their Housing Australia Future Fund (HAFF) and National Housing Accord Facility (NHAF) investment funds, with the aim of delivering 30,000 social and affordable homes across Australia.
The Coalition pledges to shut down the HAFF (honouring existing contracts) and deliver up to 500,000 new homes through a $5 billion housing infrastructure program. According to a report by Real Estate Business (REB), Dutton stated that the Coalition would clear the residential development backlog within 12 months.
First Home Buyers
Under Labor first home buyers will be able to buy property with just 5% deposit and no LMI. Labor also propose further expansions to the First Home Guarantee Scheme such as no caps on the number of places (currently 35,000) or income levels, and higher property price limits.
Under a coalition government first home buyers will be able to access up to $50K from their superannuation fund and claim tax deductions on mortgage interest payments for newly-built homes purchased as a primary place of residence. The ‘borrowed’ super money and a share of any capital gains will have to be repaid to their superannuation funds when the property is sold.
Regardless of the election outcome, we continue with the ‘wait and see’ approach as to which policy promises are implemented, and how they affect the housing industry.
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