- The Australian Labor Party announced a range of property-related changes they would implement if elected
- This included a new Help to Buy scheme
- Dino Pacella discusses these policies and changes
While the recent Federal Budget of 2022 was announced prior to the election win by the then governing Coalition, the Australian Labor Party announced property-related changes they would introduce if elected.
A revised budget will be announced by the new treasurer, Dr Jim Chalmers, later in the year.
The following is a summary of the pledges by the Albanese government during their campaign:
- A new Help to Buy scheme, involving an equity contribution from the Federal Government of up to a maximum of 40% of the purchase price of a new home (and up to a maximum of 30% of the purchase price for an existing home) for 10,000 Australians each financial year;
- A Regional First Home Buyer Support Scheme, which will provide a government guarantee of up to 15% for eligible first home buyers, so that locals with a 5 per cent deposit can avoid paying mortgage insurance
- Establish a National Housing Supply and Affordability Council that will set targets for land supply (in consultation with State and Territory Governments) and advise on ways to improve land use planning and supply for housing; as well as collect “nationally consistent data” on housing supply, demand and affordability and report on rental affordability, social housing, and homelessness and advise on ways to boost the construction of social and affordable housing.
- A $10 billion Housing Australia Future Fund, which will build 30,000 new social and affordable housing properties in its first five years
- Provide $200 million from the Housing Australia Future Fund for repair, maintenance and improvement of remote housing in Western Australia, South Australia, Queensland and the Northern Territory.
- Commit $100 million to start work on urgent housing and essential infrastructure on Northern Territory homeland and negotiate a new remote housing agreement with the Northern Territory that includes homelands, when the current agreement expires in mid-2023.
To gain an insight into the impact of these policies I invited Dino Pacella, head of Third Party Advisory at Strategic Finance & Advisory to comment on his thoughts of the budget and how the property finance sector will perform following the budget.
I should note this was shot prior to the Labor Party victory.
In the above video, Dino summarize the following points:
- Property prices in Brisbane, Adelaide and Perth continue to rise
- two or three more interest rate hikes predicted in the coming months
- Olympics coming to Brisbane driving Infrastructure growth
- Thoughts on Scott Morrison’s announcement of using superannuation for deposit to purchase your home
- Land Tax Concession in WA for July 2023 for Rent to Build Scheme
Here’s to the coming months of positive impacts of our new party in the world of property and finance.