Urban Development Institute of Australia (UDIA), welcomes the Leader of the Opposition, Peter Dutton’s announcement to give first home buyers five years of interest deductions for new home builds, which will help buyers into new dwellings and simultaneously ease loan serviceability to make it easier to obtain finance from banks.
The Coalition announcement means that a first home buyer building a home will be able to deduct mortgage interest payments for five years on the first $650,000 of their home loan. That means a leg up for Australian families and an easier time with the banks to negotiate favourable mortgages. A deduction means it is not free money, but relates to an existing financial obligation, so helps keep a lid on prices.
The Coalition’s first home buyer tax deduction is also well complemented by their $5bn infrastructure initiative that will open up new housing to mitigate demand side pressures.
“This is a decisive measure that UDIA supports, to back new homes while making it easier for Australians to service a bank loan,” said Col Dutton, UDIA President.
“This creates real outcomes that will alleviate ques for rental properties and competition for existing housing,” he said.
With the critically important National Housing Accord target of 1.2 million houses falling short by about 400,000 dwellings, we need more measures like this which, in combination with initiatives including the anticipated $5bn enabling infrastructure fund, will get us closer to the target faster.
It is in Australia’s best interests to recognise any shortfalls so we can address them immediately through supply boosting initiatives that cut approval times, provide upfront funding for infrastructure, incentives for supply of median priced housing and skilled workers to boost housing capacity.
“UDIA looks forward to working with the Federal political leadership to accelerate housing, infrastructure and skilled workers so we can shrink the housing shortfall as quickly as possible,” said Col Dutton.
–ends–
Media Enquiries:
Deanna Lane | Director, National Media & Communications | 0416 295 898 | media@udia.com.au