The Real Estate Institute of Australia (REIA) has identified 12 priorities it believes the Federal Government should adopt in the 2021-22 Budget to assist the nation’s property customers in succeeding in a COVID-normal environment.
REIA acknowledged the work the Federal Government and National Cabinet had done and praised the economic and health measures that have been put in place to protect Australians during the COVID-19 pandemic but said the priorities it has identified would assist tenants, first-home buyers, investors and agencies.
REIA President Adrian Kelly said more than 80 per cent of agents surveyed in 2020 believed that ongoing solutions – such as extended JobKeeper and rental support for Australians impacted by sectors unable to recover, including tourism and international education – would be necessary.
“We’re also proposing interest rates for first-home buyers be made tax deductible,” Mr Kelly said.
“REIA estimates this would provide a benefit of around $4000 per annum to Australia’s first-home buyers.”
Mr Kelly said the National Housing Finance and Investment Corporation estimated first-time buyers comprised about 15 per cent of the housing spectrum and noted at least six other OECD countries had similar incentives to what REIA was proposing for those entering the property market.
“We are calling on allowing voluntary super contributions and earnings to be used and accessed for all first-home buyers as well as expanding the First Home Loan Deposit Scheme (FHLDS) into a long term program,” he said.
Mr Kelly said the REIA was also seeking to help real estate agents manage their cash flow in response to the disruptions from COVID-19.
“Assistance from $2000 to $5000 per agency will allow for the individual advice from a trusted adviser to improve financial viability and productivity which will assist in the Government achieving a higher economic growth rate than would otherwise be the case.
“Cash flow problems continue to be a major issue for small businesses with 90 per cent of small business failures due to poor cash flow management,” he said.
Mr Kelly concluded that there was a need for policies and investments that would continue to drive growth in the property sector.
To view the full list of priorities, visit the REIA website.
