The Federal Government has confirmed that home buyers will now be able buy properties with the assistance of a tax credit.
The Government announced on Wednesday that they will be allowing “qualified buyers” to use the benefit for the purchase of “up to $1 million” in properties.
“A good amount of property has been sold in the last 12 months and the government will allow eligible Australians to get a tax-free loan to buy up to a $2m property for the purpose of developing the state’s rental stock,” a spokesperson for the Treasurer said.
The statement comes a day after Finance Minister Mathias Cormann told the ABC that the government was looking to introduce a new benefit to help homeowners, particularly those buying a property for more than $2.5 million.
“There are a lot of Australians who don’t get the benefit of the tax credit, and they’re getting squeezed out by people who are making $60,000 a year or more,” he said.
“We want to help people who don, so we’re introducing a new tax credit for those people who need it, and the Government is committed to making sure that we don’t leave people in this situation.”
In recent months, Mr Cormann has been working to get the rental stock in Sydney and Melbourne more affordable, particularly for lower income Australians.
In March, he announced that he was setting up a new, national housing finance agency to be funded by a 1 per cent tax on property transactions.
That’s a measure that will see more property tax reliefs targeted towards the property industry, with a 1.25 per cent levy on new property purchases in the Greater Sydney Area and a 1 percentage tax on existing properties.
It comes just weeks after the Federal Government announced that they were looking to increase the number of people who could qualify for the new rental property tax break, to 2.5 per cent.