On Tuesday evening, Federal Treasurer Josh Frydenberg handed down the 2021-22 Federal Budget, which revealed that Australia’s economy is forecast to grow by 4.25 per cent in 2021-22.  

REIA’s perspective 

The Real Estate Institute of Australia (REIA) said the 2021 Federal Budget confirmed a positive outlook for buyers, sellers, investors, tenants and small business.  

REIA President, Adrian Kelly said that measures for people, property and small business including expansion of the First Home Super Saver and the First Home Loan Deposit were welcomed. 

“REIA welcomes the budget which is aimed at helping women and first home buyers and continues to provide taxation benefits for the small business sector.” 
 
“Employment growth and jobs creation enabled by personal income and business tax deductions, infrastructure spending and investment in childcare paint an optimistic future with unemployment falling to five per cent in 2021-2022 and under five per cent by 2022-23.” 

“As part of this, the extension of full expensing and loss carry back provisions is welcome by agencies for small business as is the expansion of the Boosting Apprenticeships Program which many agencies have utilised,” he said. 

Mr Kelly said while the budget contains measures to assist first home buyers, REIA had hoped that interest rates for first home buyers would be tax deductible and that the deregulation agenda would be clearer. 

“We will continue to advocate for first home buyers to have the ability to claim interest payments as a tax deduction which will be crucial in years to come when interest rates start to rise,” he said. 

The First Home Super Saver has been lifted from $30,000.00 to $50,000.00 and will greatly assist in easing the difficulties this group faces in obtaining a home.  Expansion of this scheme has been a long standing REIA priority since it was first introduced and is a good taxation incentive which will help more first home buyers enter the market.

“Superannuation incentives for Australians aged 60 and over to sell the family home of up to $600,000.00 for couples and moving to housing that better suits their lifestyles should encouorage turnover in a tightly held market”

REIA has strongly advocated for more climate measures to better protect Australians’ homes as we know that severe weather events like cyclones, floods and fires will continue so the $10 billion-dollar underwriting guarantee on the reinsurance pool will reduce insurance premiums by around $1.5 billion for 500,000 policy holders thereby making their properties more saleable.   REIA Media Release.