The Australian Government hasn’t forgotten homebuyers in this year’s 2021 Budget, with first home buyers, single parents and downsizers set to benefit. In case you missed it, we’ve outlined the key initiatives announced in the 2021 Federal Budget last night below:
Two key measures have been aimed at continuing to help first home buyers enter the market without having to save for decades for the required deposit.
The Government announced there will be an increase in the maximum releasable amount of voluntary concessional and non-concessional contributions under the First Home Super Saver Scheme (FHSSS) from $30,000 to $50,000. Voluntary contributions from 1 July 2017 up to the current limit of $15,000 per year will count towards the total amount able to be released. This measure is expected to apply from 1 July 2022.
The First Home Loan Deposit Scheme will also be extended with a further 10,000 eligible participants between 1 July 2021 and 20 June 2022. The scheme guarantees up to 15% of the property purchase price for first home buyers seeking to build or purchase a newly built home. These additional places are known as the First Home Loan Deposit Scheme (New Homes) or FHLDS (New Homes).
Eligible first home buyers will be able to use the FHLDS (New Homes) guarantee in conjunction with other government programs like the First Home Super Saver Scheme, or state and territory First Home Owner Grants and stamp duty concessions.
The guarantee is not a cash payment or a deposit for your home loan.
The Government has expanded its Downsizer Contribution Scheme. The eligibility age for making downsizer contributions will be reduced from 65 to 60 years of age. The Downsizer Contribution Scheme allows individuals to make one-off, post-tax contributions to their superannuation of up to $300,000 from the proceeds of selling their home. Both members of a couple can contribute in respect of the same home, and contributions do not count towards non-concessional contribution caps.
This measure is expected to come into effect from 1 July 2022.
Also announced was the newly introduced Family Home Guarantee, which has been modeled off the successful First Home Loan Deposit Scheme. The scheme has been developed to provide support to 10,000 single parents with dependents to buy or build a new home or buy an existing property with as little as a 2% deposit, regardless of whether they are first home buyers or have previously owned a property. Applicants must be at least 18 years of age and have an annual taxable income of no more than $125,000 and deemed to be able to service a loan in order to be eligible for this scheme.
The Family Home Guarantee is proposed to commence from 1 July 2021.
Looking to take advantage of some of these Budget initiatives to purchase a new or off-the-plan property in 2021? Speak to one of our friendly team members about how iBuyNew can help.