Federal Budget 2022-23 | Home Guarantee Expands Into Regions
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30 Mar, 2022
Updated: 08 Aug, 2024
The 2022-23 federal budget had plenty for prospective home buyers, as the government announced expansions to its current home guarantee schemes, with a new regional home guarantee and other measures.
There is also tax relief for low-to-middle-income families, plus new funding commitments for infrastructure, regional Australia, and the National Disability Insurance Scheme (NDIS).
Extension Of Home Buyer Schemes
From July 2022 onwards, there will be 50,000 new places available in the existing home buyer schemes. The budget also introduced a new home buyer scheme for regional areas:
- The First Home Guarantee will now accept 35,000 applications. This is an increase from the current 10,000 places each year.
- The Family Home Guarantee, which was announced last year with 10,000 places over four years, will now add 5,000 places each year, from 1 July 2022 to 30 June 2025.
- The new Regional Home Guarantee will offer 10,000 places each year from 1 October 2022 to 30 June 2025.
What is the Regional Home Guarantee?
The Regional Home Guarantee is a new scheme for borrowers who want to buy or build a home in regional areas with a deposit as small as 5%, without paying Lenders Mortgage Insurance.
The scheme is open to first-home buyers and anyone who has not owned property in the last five years. Permanent residents are eligible.
What Are The Price Caps Under Each Scheme?
| Region | 2020-21 First Home Loan Deposit Scheme (FHLDS) | 2021-22 FHLDS and Family Home Guarantee | New Home Guarantee Price Cap |
|---|---|---|---|
| NSW – capital city, regional centres (Newcastle, Lake Macquarie and Illawarra) | $700,000 | $800,000 | $950,000 |
| NSW – other | $450,000 | $600,000 | $600,000 |
| VIC – capital city, regional centre (Geelong) | $600,000 | $700,000 | $850,000 |
| VIC – other | $375,000 | $500,000 | $550,000 |
| QLD – capital city, regional centres (Gold Coast and Sunshine Coast) | $475,000 | $600,000 | $650,000 |
| QLD – other | $400,000 | $450,000 | $500,000 |
| WA – capital city | $400,000 | $500,000 | $550,000 |
| WA – other | $300,000 | $400,000 | $400,000 |
| SA – capital city | $400,000 | $500,000M | $550,000 |
| SA – other | $250,000 | $350,000 | $400,000 |
| TAS – capital city | $400,000 | $500,000 | $550,000 |
| TAS – other | $300,000 | $400,000 | $400,000 |
| ACT | $500,000 | $500,000 | $600,000 |
| Northern Territory | $375,000 | $500,000 | $550,000 |
| Jervis Bay Territory and Norfolk Island | $450,000 | $550,000 | $600,000 |
| Christmas Island & Cocos (Keeling) Island | $300,000 | $400,000 | $400,000 |
We Can Help You Buy Your First Home
The budget is focused on helping home buyers with a small deposit buy their first home in this challenging market. Our mortgage brokers are here to help. Whether you’re looking for your first home or expanding your property portfolio, call us on 1300 889 743 or enquire online today.
First Home Super Saver Scheme
The government also expanded its First Home Super Saver Scheme (FHSSS). The scheme allows prospective first-home buyers to save money within their super account with voluntary contributions, which provides a tax break. From 1 July 2022, the maximum total of voluntary contributions that you can release from your super under the FHSSS will increase from $30,000 to $50,000.
National Disability Insurance Scheme (NDIS) Funding
In 2022-23, the NDIS will provide $33.9 billion to more than 500,000 Australians who have a permanent or significant disability. This amount will grow to $44.6 billion annually in four years. The scheme provides funding directly to individuals based on their goals and the support they need.
Tax Relief
- Low-and-middle-income earners will receive a one-off tax credit of $420. This is in addition to the low- and middle-income tax offset, so some taxpayers will receive as much as a $1500 tax credit this year through this scheme.
- The government will reduce fuel excise by 50% for six months, reducing the tax from 44.2 cents per litre to 22.1 cents per litre, to reduce the price of vehicle fuel.
- Small businesses with a turnover of less than $50 million can claim a bonus 20% deduction for the cost of business expenses and depreciating assets that support digital uptake, for 2022-23.
How Much Relief Will I Get From The Low And Middle Income Tax Offset?
| If You Earn… | Tax Relief |
|---|---|
| Up to $37,000 | $675 |
| From $37,001 to $48,000 | From $676 to $1,500 |
| From $48,001 to $90,000 | $1,500 |
| From $90,001 to $125,999 | Between $420 and $1,500, declining as income increases |
“The range of cost of living measures is very welcome,” Home Loan Experts CEO Alan Hemmings said. “They will go some way to assisting families with offsetting some of the rising costs we are all experiencing. When we start to see interest rates increase, these measures will be even more effective.”
Hemmings pointed to childcare rebates as the only other new budget measure that will help those looking to get into the home ownership market. “By increasing the rebates, the government will reduce the cost of childcare,” he said. “This will improve the serviceability of applicants with children in childcare.
“Unfortunately, what we didn’t see in the budget were any measures to increase housing supply. Not building enough homes is one of the reasons house prices are high in Australia.”
Infrastructure Development
The government has committed an additional $17.9 billion to its infrastructure budget, bringing the value of its rolling 10-year infrastructure investment pipeline to a record $120 billion.
In the 2022-23 budget, the government has committed additional funding for new projects and existing projects in each state and territory.
| State/Territory | New Funding | Projects |
|---|---|---|
| New South Wales (NSW) | $3.6 billion | Sydney to Newcastle – Tuggerah to Wyong Faster Rail Upgrade Milton Ulladulla Bypass Pacific Highway, Wyong Town Centre Grade Separating Road Interfaces Wakehurst Parkway Hume Highway Intersection upgrade Central Coast Highway Tumbi Road Intersection upgrade Local road and community infrastructure projects |
| Victoria(VIC) | $3.5 billion | Beveridge Interstate Freight Terminal and connecting roads Outer Metropolitan Ring Rail Station Western Interstate Freight Terminal Mickleham Road upgrade Local road and community infrastructure projects Ballarat to Ouyen Corridor upgrade |
| Queensland (QLD) | $4.4 billion | Brisbane to Sunshine Coast – Beerwah – Maroochydore Rail extension Brisbane to the Gold Coast – Kuraby – Beenleigh Faster Rail upgrade Mount Isa to Rockhampton Corridor upgrade Tennant Creek to Townsville Corridor upgrade Local road and community infrastructure projects Cooktown to Weipa Corridor upgrade Wyaga Creek Flood Improvement project |
| Western Australia (WA) | $2.3 billion | METRONET rail projects Outback Way-Western Australia Local road and community infrastructure projects |
| South Australia (SA) | $2.9 billion | North-South Corridor – Darlington to Anzac Highway Marion Road – Anzac Highway to Cross Road project Local road and community infrastructure projects |
| Tasmania (TAS) | $662.2 million | Tasmanian Roads Package Great Drive Tourism Support – Packages |
| Northern Territory (NT) | $538.7 million | Central Australian Tourism Roads Outback Way – Northern Territory Local road and community infrastructure projects |
| Australian Capital Territory (ACT) | $59.5 million | Athllon Drive Duplication Kent Street and Novar Street Intersection Upgrades |
Funding For Regional Australia
- $2 billion for a Regional Accelerator Program aimed at creating jobs in modern manufacturing, critical minerals and agriculture sectors
- $7.1 billion funding for the Northern Territory, North and Central Queensland, The Pilbara (WA) and Hunter Valley (NSW) to develop ports, dams, roads and low-emissions manufacturing hubs.
