Coalition’s Plans Boost Housing Targets
The Property Council of Australia has welcomed the Coalitions’ First Home Buyer Mortgage Deductibility Scheme to get tens of thousands of first home buyers into new homes and says strong planning measures – like the Coalition’s announced $5 billion Housing Infrastructure Programme and red tape reduction plans – remain the pocket aces of housing supply.
The scheme will allow a tax deduction against personal income for interest payments on a first home buyer mortgage against newly-built principal places of residence for a five-year period. The income test is $175,000 for individuals and $250,000 for joint applicants and there will be a cap of $650,000 on the share of any mortgage for which deductibility is claimed.
“First home buyers in capital cities are getting closer and closer to a median age of 40 just as we are undershooting our 1.2 million home ambition by a quarter or more,” said Property Council Chief Executive Mike Zorbas.
“Many tens of thousands of new homes over five years alongside last mile infrastructure improvements are a shot in the arm for our national supply numbers.
“Coupled with supply improvement policies, deductibility of mortgage repayments on new builds will help first home buyers who are watching their dream of home ownership slip away.
“A stronger demand pipeline allows building businesses to plan for the future with confidence, translating to more new homes across the country and is a hedge against global uncertainty.
“Whoever forms government will need to apply additional direct incentives to boost state and local government supply and approval capacity, keeping the market in equilibrium, to build the homes the nation needs,” he said.
The Property Council also noted
https://www.propertycouncil.com.au/media-releases/taken-as-a-whole-coalitions-plans-a-shot-in-the-arm-for-housing-targets