The 2022-23 Federal Budget was announced in late October, highlighted by the National Housing Accord to combat the affordability crisis.
The initial announcement on October 25, saw Treasurer Jim Chalmers deliver the budget speech which covered cost of living, hospital, and other initiatives.
After a deeper dive into the Federal budget, here are the initiatives developed to assist with housing affordability and achievability:
- National Housing Accord between government, industry and stakeholders to achieve a target of one million new homes across the country over a 5 year period from 2024
- National Housing and Homelessness Plan to be developed in close consultation with the states and territories and other stakeholders
- An Accord to establish the Housing Australia Future Fund to be used to build 30,000 new social and affordable dwellings over 5 years.
- The expansion of the National Housing Infrastructure Facility to allow more flexibility expected to unlock a projected 5,500 new dwellings.
- A Regional First Home Buyer Guarantee to assist 10,000 eligible first home buyers a year to buy a home in regional Australia.
- The expansion of the Defence Home Ownership Assistance Scheme to support veterans and Australian Defence Force members to purchase a home through monthly subsidies on mortgage interest payments.
- Help to Buy, to provide eligible home buyers access to an equity contribution to buy a home with a smaller deposit and a smaller mortgage.
- Extension of the exemption of home sale proceeds from pension asset testing by 12 months and expanding access to make downsizer contributions to superannuation for people aged 55 to 59.
With these schemes and initiatives in place in some cases from early as 2023 and 24, the conveyancing industry is set to benefit from consistent long-term effect on ensured property transactions.
This will present a chance for small to middle income earners to enter the property market, after seeing property affordability escape with the housing boom in the last three years.
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