2022 Federal Budget: What’s in the pipeline for home buyers?

The Morrison government has released its federal budget for the new financial year, including a range of initiatives targeting home ownership and housing affordability. Last year, the federal budget’s focus was on “securing Australia’s recovery,” this year the plan focuses on building the nation’s “stronger future”, as the government highlights the effect of Covid in the economy. “The last 2 years have been tough for our country, there have been setbacks along the way. But Australia remains resilient. Australians remain strong. We have overcome the biggest economic shock since the Great Depression,” Treasurer Josh Frydenberg said.

Here are some of the key economic figured the treasurer highlighted:

• Unemployment sits at 4 per cent, the equal lowest in 48 years.
• Roughly 2 million more Australians are in work today than in 2013.
• More women are currently working than ever before.

This year’s budget represented the “largest and fastest improvement to the budget bottom line in over 70 years,” with this year’s fiscal plan $100 billion better off compared to last year – Mr. Frydenberg said. Frydenberg handed down the 2022-23 federal budget on Tuesday (29 March), revealing a $78 billion deficit (3.4 per cent of GDP). This compared to a $79.8 billion deficit the year before. The cost of living as fuel prices surge, omicron and the effects from the recent floods in NSW and Queensland had taken priority for the government, among other factors.

As indicated on Monday (28 March), the government has made a move to invest big in its Home Guarantee scheme expanding it to New Home Guarantee, Family Home Guarantee, and First Home Guarantee (previously known as the First Home Loan Deposit Scheme), as well as the introduction of a new funding initiative, the Regional Home Guarantee, open to non-first home buyers.

• The First Home Guarantee will now accept 35,000 applicants each year, up from the current 10,000, beginning on 1 July 2022.
• The Family Home Guarantee, which previously allocated 10,000 places over a four-year period, will now offer 5,000 guarantees 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 to home buyers, including non-first home buyers and permanent residents, seeking to purchase or construct a new home in regional areas.