The Federal Budget 2019-20 was released at 7.30pm AEDT last night dated 3rd April 2019, featuring the first surplus in 12 years.
Delivered by Josh Frydenberg, the pre-election Budget detailed the Federal Government’s policy plans for the year ahead and not much was said about the Australian property market.
The Treasurer appears to realise housing affordability is still a major problem for Australians, but you wouldn’t know it from his first Budget.
For the second year in a row, the Budget shows no benefit for first home buyers. Unfortunately, any price movements occurring over the recent months, hasn’t improved the housing affordability for them. Unless of course they have a property deposit, they have been able to source a property under less competition from investors. The Royal Commissioner has heavily influenced the reduction in investors buying given the difficulty to obtaining a loan.
The 2019-20 Federal Budget appears to ignore the barriers to home ownership facing young Australians. There were discussions around funding for affordable housing through community and social housing, but no assistance is on offer to help first home buyers save for a deposit or introduce themselves into the property market.
Josh Frydenberg said the fall in dwelling investment was a concern for the economy, and warned it was the “worst possible time” to switch to Labor. Opposition Leader Bill Shorten is proposing changes to negative gearing on newly purchased properties, which he says will benefit first home buyers and level the playing field by stripping investors’ tax incentives to acquire more properties.
Overall the Federal Budget offers little in the way of policy change or structural reform. Government spending on infrastructure is the chosen remedy to a slowing economy and the tool to seduce voters in an imminent election.
To learn more about other tax reforms please click here .
At Crest Property Investments we devote time to understand the market, legislation and tax reforms to ensure we can help you make the best decision going forward. We have proven strategies to help your affordability and partner with various professionals to accomplish your goals and objectives.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Apr 2019
