(1) First Home Buyers
First home buyers will be able to make tax deductible payments into a special savings account to save for a deposit faster. It is limited to $30K, but it’s a step in the right direction, however it’s not the removal of stamp duty, which is what the new generation really want. Saving 5% or 10% is hard enough without the additional 4% to ‘donate’. The younger generations despise the thought of it, and this needs to be addressed in the future.
(2) Foreign Investors
Foreign investors who own houses and keep them empty will be charged a levy in order to encourage them to rent them out, opening up the rental market in already crowded suburbs.
With the new ability to use sales proceeds to make a non-concessional contribution into their Super, Retirees will be encouraged to downsize, freeing up houses for younger families. However this doesn’t come with a tax break.
(4) Landlords and Rentals
Affordable rental housing will be encouraged via a scheme (similar to the National Rental Affordability Scheme) with investors offered a Capital Gains Tax Discount of 60% rather than 50%, if they wait at least three years to sell and rent it out a bit cheaper than market rent.
(5) Bank Switching
To encourage competition in the banking sector, a new Payment Platform will be created to make it easier to switch banks, however this is yet to come. We are still waiting to see what form this will come in.
(6) Negative Gearing
Common sense has prevailed on negative gearing, with no changes occurring.
Depreciation has had a mild change. Investors will no longer be able to claim depreciation on items within the property that weren’t bought direct by them, and can no longer claim travel expenses to go inspect our property every year. However, existing investments will be grandfathered.
If you need more information or wish to talk to us about this, give our specialist team a call today at any of our offices.
Strathfield: 9747 114
Concord: 9743 1369
Drummoyne: 9819 7244
The Devine Team.