2014 Federal Budget
The development sector took a hit to affordable housing in the 2014 Budget, with the announcement that the Government will not proceed with the final round of the National Rental Affordability Scheme (NRAS) and scrap the First Home Saver Accounts Scheme.
“This budget has done little to assist with addressing the affordability issues being experienced by those trying to enter the housing market,” said Sian Sinclair, Head of Real Estate and Construction at Grant Thornton Australia.
The limited take up of the First Home Saver Scheme since its introduction in 2008, made it an easy one for the Government to drop. “While the sentiment was great when it was introduced, the scheme itself had many shortcomings and this was evidenced by the underwhelming response from those it was intended to benefit.”
“Of more concern is the fallout on consumer confidence when taxpayers realise the impact of the personal tax changes on the family income and concessions, which could see the recent spending in residential housing sector reigned in, just as it was getting started.”
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