Morrison targets young and old in push for affordable housing
Scott Morrison has targeted both young and old in his efforts to make housing more affordable.
In his Budget speech, Morrison said first home buyers would be able to save for a house deposit by salary sacrificing into their superannuation account, over and above their compulsory super contribution, from July 1.
Also, he will encourage older Australians to free-up housing stock by enabling downsizers over 65 to make a non-concessional contribution of up to $300,000 into their super fund “from the proceeds of the sale of their principal home”.
In theory, the moves are good for WA businesses involved in construction as the policies should increase demand for new houses by making them more affordable to buyers who’d previously been locked out of the market.
But beware of the law of unintended consequences, warns the CCI.
CCI's Chief Economist, Rick Newnham, agrees that “right-sizing policies” will be good for all markets, as first home owners and empty-nesters often face difficulties either purchasing or selling properties.
“Whilst it’s still difficult for many young people to buy their first home, the WA housing market is at the opposite end of the cycle from Sydney and Melbourne,” he says.
Meanwhile, the Federal Government provided a clear green light for growth by restating its commitment to a 25 per cent company tax rate for all businesses, says CCI CEO Deidre Willmott.
In the last budget, the Government announced it would reduce the corporate tax rate progressively from 30 per cent to 25 per cent in the next decade, and last night confirmed the measure would stay on the books.
It was warmly welcomed by Willmott.
“Keeping company taxes low allows West Australian businesses to grow,” she says. “This is an important commitment for promoting growth and should be supported by all parties in the Parliament,” she says.