Changes Coming To Australia On 1 July 2023

As the new financial year begins, many changes that were announced in the federal and state budgets will come into effect. We’ve outlined the major changes that will affect home buyers, owners, renters and investors.

Federal Changes

The following changes are effective from 1 July 2023.

Home Guarantee Scheme Changes

The eligibility for all three schemes has been expanded to include permanent residents.

• First Home Guarantee and Regional First Home Buyer Guarantee
  • These schemes allow joint applications from friends, siblings, and other family members.
  • Buyers who had owned a home in the past, provided their last ownership was 10 years ago, are also eligible.
• Family Home Guarantee
  • Eligibility has extended to include single legal guardians of children such as aunts, uncles, and grandparents.

You can read our blog for more information about the Home Guarantee Scheme changes.

Pay Rises

• Minimum award wages will increase by 5.75%.
• The national minimum wage will rise to $882.20 a week, an increase of $23.23 a week.
• Aged-care workers will receive a 15% increase, in addition to the 5.75% boost if they are affected by that.

State Changes

The following changes are effective from 1 July 2023.

New South Wales

• Expansion of its First Home Buyer Assistance Scheme (FHBAS)
  • Transfer duty exemption will apply for new and existing home purchases worth up to $800,000.
  • The concessional rate for transfer duty will apply on purchases from $800,000 to $1 million.
• There will be no First Home Buyer Choice, which means there will be no option to choose between property tax and transfer duty on new purchases.

Victoria

• Windfall Gains Tax
  • A windfall gains tax will be imposed on land that has been rezoned by a planning scheme amendment. This will result in an uplift in land value of more than $100,000. This tax will be applicable to all land owned by the same person or group and subject to the rezoning, and the value uplift will be calculated based on the difference in the land’s value before and after the rezoning.

Queensland

• Build-To-Rent
  • The state government will provide build-to-rent tax concessions to support developments that provide at least 10% of dwellings as affordable housing at discounted rents.
  • The tax concessions will be available for a maximum of 20 years or 30 June 2050 (whichever is sooner).
  • The developments must be operational by 30 June 2030 to be eligible for concessions.
• Rental Reform
  • The state government has passed legislation to limit rent increases to once a year. This applies to all new and existing tenancies from 1 July 2023 onwards.

South Australia

• Support for first-home buyers
  • Stamp duty will be abolished for first-home buyers purchasing a new home valued at up to $650,000. Concessions are available for new homes valued from $650,000 to $700,000.
  • The First Home Owner Grant property value cap will be increased to $650,000 from $575,000.
  • For the purchase of vacant land where a new home will be built, stamp duty is abolished for land valued up to $400,000, with concessions available for land valued up to $450,000.
  • A fast-tracked approval process will help first-home buyers expedite the planning approval process.
  • For those who want to build their first home, HomeStart will allow first-home buyers to take out a new loan with at least a 2% deposit.
• Rent limit
  • The weekly rent threshold for six-week bonds has increased from $250 to $800. Landlords cannot ask for a bond higher than six weeks’ worth of rent unless the rent is above $800 each week.
  • Rent bidding is banned.

ACT

• Build-To-Rent
  • The government will fund a second Build-to-Rent project in Gungahlin, which will include affordable rentals.
  • Additionally, a $177.1 million investment will ensure public housing tenants have safe and comfortable homes.
  • A $55.9 million investment will provide 140 new homes for Canberrans.

As we step into the new fiscal year, it’s crucial for both individuals and businesses to stay informed about these changes and understand how they may affect their specific situations. Whether you’re a prospective homeowner hoping to take advantage of the expanded schemes or an investor navigating the implications of rezoning and windfall gains tax, being aware and ready can make a meaningful difference. Our mortgage brokers are here to help. Call us on 1300 889 743 or complete our free assessment form today.