But that wasn’t the only measure home buyers, vendors and investors will find interesting.
Here are some highlights from CoreLogic’s wrap of Federal Budget measures that could affect you.
- Downsizers can take up to $300,000 from the sale of their family home and park it in superannuation as a non-concessional contribution, exempt from the existing $1.6 million transfer balance cap on retirement contributions. What does this mean? Retirees have a greater financial incentive to sell up and free up large homes, boosting supply in overheated markets.
- Investors can no longer include travel associated with their investment property and they can’t claim depreciation on ‘plant and equipment’ such as the dishwasher, oven and hot water system. Negative gearing and the capital gains tax concession remain untouched.
- Foreign buyer demand could be dampened with a new $5000 levy on foreign owned properties left vacant for at least six months over a year; and foreign buyers are exempt from any capital gains tax concessions. Additionally, developers can’t sell more than half of a development to foreign buyers.
- To recap on what we reported last week, the First home super savers scheme will help prospective first time buyers to save for a deposit, utilising a salary sacrifice arrangement directly into their super fund which will attract the same tax concessions as superannuation donations (15% tax rate). Savers can add an additional $15,000 per year or $30,000 in total.
The fallout from the decision to hit Australia’s five biggest banks with a $6 billion levy is yet to land, but mortgage holders with these banks are waiting to see if the levy will be passed on to customers in the form of a rate rise.