The exact measures to be announced this evening (the 9th May) are not yet clear, but this is our understanding so far:
Foreign investment has been a big issue over recent years with thousands of foreign-owned properties being left empty in order to drive up rents. With a potential vacancy tax for foreign owners of $5000 per property if left empty, this will incite more overseas investors to fill their properties which will have a corresponding downwards push on rental fees. This is just one measure we are likely to see in today’s budget to drive down housing affordability in Australia’s major cities.
Investor loans are under the spotlight following a tightening of restrictions on lending for real estate investments. All eyes are on the budget today to see if Scott Morrison issues any further warning or indeed restrictions on investor lending in order to curb household debt.
Incentives for older Australians to downsize, are expected in today’s budget. This move is has the potential to increase the property supply by up to 50,000 homes for families coming into the market. A relaxing on the rules regarding asset testing on the aged pension and caps on superannuation are the favoured budget measures to facilitate downsizing.
Helping first home buyers save for a deposit is another issue on the table, however it is unclear at this stage as to what measures will be put forward, but it seems for now that access to superannuation is firmly off the agenda.