For the most part there are very few changes in the 2018 Federal Budget targeting the property industry. Some interesting points of note include:
- Property owners who leave vacant land undeveloped, otherwise known as “land banking”, will no longer benefit from tax incentives
- Home buyers, particularly first home buyers looking to create a deposit for purchasing a home will be able to store their savings in their superfund tax free.
- Australians over the retirement age can now access the equity in their homes without having to sell. This addresses the issue of retired Australians having their wealth tired up while they remain relatively cash poor. The measure does not encourage property turnover, instead it encourages pensioner to hang on to their property.
WA Budget 2018
New budget measures targeting foreigners purchasing property in WA look set to be implemented from January 1 requiring a 7% surcharge on the purchase price. AICWA met with representatives from the Office of State Revenue yesterday evening who confirmed they had commenced drafting the measure. Stay tuned for more.
Source:10th May 2018 AICWA e-Newsletter