The Government proposes to further encourage investment into affordable housing by allowing Management Investment Trusts the ability to invest in residential properties, allowing investors to receive concessional tax treatment.
The Government has announced that there will be an increase to the CGT discount from 50% to 60% for resident individuals who invest in qualifying affordable housing.
As part of a suite of measures to reduce pressure on housing affordability, two measures that are targeted at lowering the cost of finance for affordable and social housing were announced.
The Government has announced its intention to introduce an annual levy which will apply to foreign owners of residential property located in Australia. The charge will apply in cases where the property is neither occupied, nor genuinely available for rent for at least six months of the year.
Through the extension of a number of pre-existing measures, the Government is tightening foreign residents’ ability to access Capital Gains Tax (CGT) concessions.
The Government has announced a number of changes to be administrated by the Foreign Investment Review Board.
Individuals aged 65 and over who have owned their principal place of residence for more than 10 years will have an opportunity to make a Non-Concessional Contribution of up to $300,000 from the proceeds of selling their home, should they chose to downsize and relocate.
Individuals will be able to withdraw certain voluntary contributions made into superannuation to top up their deposit on their first home.
As part of the Government’s agenda to facilitate affordable housing, the Budget proposes removal of a number of deductions in relation to investment properties, which have allegedly been exploited.