The 2021-22 Federal Budget unveiled Tuesday night by the Treasurer Josh Frydenberg had as key initiatives, a raft of grants and schemes designed to “help more Australians realise their goal of home ownership”.
This is welcome news for single parents who now have a pathway to home ownership through the new Family Home Guarantee, as well as first home buyers and those hoping to take advantage of the HomeBuilder grant.
So, what does this mean for you?
The Federal Government says it “recognises the importance of home ownership and the economic and social benefits it provides” and as such, it has announced 10,000 Family Home Guarantees for eligible single parents with dependent children to secure a home with a deposit of as little as 2%. The Family Home Guarantee applies to both new and existing homes. Single parents seeking to reenter the property market are eligible, in addition to those buying their first home.
First home buyers
10,000 more places in the New Home Guarantee scheme for 2021-22
The New Home Guarantee scheme helps first home owners build or purchase a newly built home with as little as 5% deposit. This popular scheme now has an extra 10,000 places available for first home owners in 2021-22.
First Home Super Saver Scheme increase in maximum amount of voluntary contributions that can be released from $30,000 to $50,000
The First Home Super Saver Scheme allows eligible first home buyers to access voluntary contributions they have made to their superannuation to put towards a house deposit.
The latest changes mean from 1 July, first home buyers will be able to access up to $50,000 in voluntary super contributions (an increase from the current $30,000 maximum).
Existing HomeBuilder grant applicants
With over 120,000 applicants, the Federal Government’s HomeBuilder grant has been highly successful in stimulating construction activity. If you are an existing applicant, the government has extended the 6 month construction commencement period to 18 months so you have more time to take advantage of the HomeBuilder grant.
Younger retirees or those not far off retiring, will be able to make a downsizer superannuation contribution of up to $300,000 per person when selling their home after age 60 and meeting other eligibility criteria from 1 July 2022. This will provide additional motivation for retirees looking to downsize to a new home that’s low maintenance and more suited to their needs in retirement, and greater flexibility to contribute to their superannuation.
Low and middle income earners
The recently introduced Low and Middle Income Tax Offset will be extended into the 2021-22 financial year, providing tax savings of up to $1,080 for individuals or up to $2,160 for a couple.
For more details on the Federal Budget and these initiatives, go to budget.gov.au