2017 Federal Budget..what we know so far

With the Federal Government due to release it’s 2017 budget tonight here is a heads up on what has already been made on some key announcements about the housing industry and how this may affect you.

HOUSING

• First-home buyers will benefit from a new type of savings account that allows them to salary-sacrifice contributions towards a deposit from their pre-tax pay. They won’t be able to dip into superannuation, as was suggested earlier this year.

• Retired couples who downsize by selling their homes will be offered exemptions from new superannuation caps of $100,000 in after-tax contributions and $1.6 million in retirement accounts.

• A “ghost house tax” will be imposed on foreign investors who leave their properties vacant, a practice known as “land banking”.

• A “bond aggregator model” will enable loans to community housing associations at lower long-term rates to encourage investment.

• The Government has ruled out doing much to reduce demand, including changes to negative gearing or capital gains tax concessions.

Go to http://www.budget.gov.au/ to see what else will be included