Federal Budget 2021-22: What does it mean for real estate?

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

REIAs 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 haveutilised, he said.

MrKelly 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.

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