Federal budget housing update 2022

Negative gearing to stay

Both major parties now support the continuation of the investment property tax program.

The Real Estate Institute of Australia (REIA) revealed last week that it had secured Labor's commitment to retaining negative gearing, meaning both major parties now support the continuation of the investment property tax program.

Negative gearing is effectively a tax offset that closes the gap between how much an investment property costs an owner and how much they are able to make from it. With negative gearing remaining, we should see a boost in house supply.

First Home Buyers Scheme

With housing affordability a main issue amongst voters and first home buyers predominantly, the Gov. has doubled down on its Home Guarantee Scheme..

• An extra 25,000 more First Home Loan Deposit Scheme (FHLDS) is being released each year, with 35,000 new spots available from 1 July 2022. This is a massive increase from 10,000 released each year

• There have been no changes to the purchase caps with metro Sydney still at $800k for an existing dwelling and $1m for a new dwelling

• An extra 5,000 Family Home Guarantee places are being released, which is the scheme for single parents requiring just a 2% cash deposit

• New scheme announced Regional Home Guarantee with 10,000 spots released from 1 Oct 2022