Amid a national rental crisis, fast recovering population growth, and constrained housing supply, measures to address the housing shortage and worsening affordability featured prominently in this year’s budget.
While renting is a vital part of Australia’s housing market, it has been failing many.
Nationally, advertised rents have soared 11% year-on-year, and vacancy rates are at historic lows. With the outlook remaining challenged, the budget's new housing line items honed in on this area.
Home buying incentives – eligibility expanded but many miss out
The government has also expanded the eligibility criteria for the First Home Guarantee, and the Regional First Home Buyer Guarantee.
The schemes have previously only been available to singles and married or de facto partners, but now the expanded classification of a “couple” includes friends, siblings, and other family members, meaning they will be eligible for joint applications from July 1, 2023.
The guarantees will also be expanded to non first-home buyers who haven’t owned a property in Australia in the past 10 years, supporting those who have fallen out of homeownership, now also including permanent residents.
The Family Home Guarantee will also be expanded to be available to eligible borrowers who are single legal guardians of children such as an aunt, uncle or grandparent, in addition to single natural and adoptive parents.
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