According to recent reports, the Australian government is expecting 400,000 migrants to arrive in the country in 2023. To accommodate this influx of people, the federal budget has allocated $2 billion to support social and affordable housing, as well as implementing two tax changes to encourage investors and developers to build more homes.
This investment comes as part of the federal government’s ambitious goal to construct 1 million homes over the next 5 years, in response to the growing demand for affordable housing across the country.
With more people coming to Australia than leaving, the vacancy rate is already at an all-time low of less than 1%. This has put immense pressure on the housing market, with rising property prices and a shortage of affordable housing for low-income families.
The government’s investment in social and affordable housing is a much-needed boost to address this issue. The funding will help to provide safe and secure housing for vulnerable members of the community, such as low-income families, the elderly, and people with disabilities.
In addition to the $2 billion investment, the government has introduced two tax changes to encourage investment in the construction of new homes. The first change is a 30% capital gains tax discount for investors who hold new affordable housing for at least three years. The second change is a temporary increase in the concessional borrowing limit for community housing providers.
These measures aim to incentivize developers and investors to build more affordable homes, and to help tackle the housing crisis facing the country.
The government’s commitment to affordable housing is a welcome development, and will help to ensure that everyone has access to safe and secure housing. It is hoped that these measures will go some way towards addressing the growing demand for affordable housing, and providing a stable and secure future for all Australians.
Are you ready to take advantage of the new opportunities in the Australian housing market? SA Thomson is here to help. Contact us today to learn more about our services and how we can assist you in achieving your property investment goals.