Federal Budget Insights 2021/22

We shine a spotlight on the key areas of the 2021/22 Federal Budget that could impact your property plans.

Published 12 May 2021

Support for first home buyers

The number of first home buyers getting into the market is approaching the highest level since 2009, accounting for nearly 40% of new home loans, well above the 10-year average of around 30%1.

The great news for buyers is that the Federal Budget has introduced initiatives designed to help even more Australians buy their first home.

Extra places for First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme (FHLDS) is an opportunity for eligible first home buyers to buy a first home with 5% deposit and no lenders mortgage insurance. 


The Federal Budget has added an extra 10,000 FHLDS (New Homes) places2, available from 1 July 2021 to 30 June 2022, specifically targeting first home buyers who build or buy a newly constructed home. 

In this Mortgage Minute Emma explains the New Home Guarantee scheme, which allows you to buy a home with as little as a 5% deposit. Watch now to find out more.

There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme. Contact your local Mortgage Choice broker today to find out if you’re eligible – and to find out which lenders are involved in the scheme.

Boost to contributions of First Home Super Saver scheme

The First Home Super Saver Scheme allows eligible first home buyers to use voluntary super contributions to grow a home-buying deposit. This can offer the benefit of tax savings plus the potential to earn high returns to help grow a deposit. 

The Federal Budget has announced it will boost the maximum voluntary contributions that can be released under the First Home Super Saver Scheme, from $30,000 to $50,000 effective from 1 July 2021.3

It’s hoped this will help first home buyers get into the market sooner, particularly given the strong price growth seen across the property market.4 

Give your local Mortgage Choice broker a call today to find out how the First Home Super Saver Scheme can help you get into your first home.

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First home buyer's guide

Purchasing your first property can be an overwhelming process and there may be steps you are unsure or unaware aware of. This guide will walk you through all of the steps involved in the buying process.


Download now

Support for families

The Budget delivers a range of benefits for Australian families, with support that spans buying a home through to tax savings.

Helping single parents become homeowners - The Family Home Guarantee

The Federal Budget has announced a new program called the Family Home Guarantee. This gives eligible single parents the opportunity to build a new home or buy an established home with a deposit of just 2% (subject to being able to service home loan repayments).5

A total of 10,000 Family Home Guarantee places are available – and they’re not limited to first home buyers. 

The Family Home Guarantees will be available from 1 July 2021 for the next four financial years. Applicants must be Australian citizens, minimum age of 18, with an annual taxable income of $125,000 or less.6 


In this Mortgage Minute Emma explains the Family Home Guarantee scheme, which allows you to buy a home with as little as a 2% deposit. Watch now to find out more.

Give your local Mortgage Choice broker a call today to find out how this initiative could work for single parent families.

Insights for families

Household budgets can be tight for working parents, and the Federal Budget is helping out with a $1.7 billion boost7 to the Child Care Support subsidy to lower the cost of childcare for families with two or more children. 

increasing the Child Care Subsidy (CCS) rate by 30 percentage points for the second child and subsequent children aged five years and under in care, up to a maximum CCS rate of 95 per cent for these children, commencing on 11 July 2022.

The policy will provide rebates for the second child and subsequent children of up to 95% of the cost of care for families with two children, which Treasurer Josh Frydenberg says will leave 250,000 families better off by an average of $2,200 each year.8

This is great news for working families, freeing up extra cash to manage a home loan, or allowing parents to return to work to bring more money into the household. The policy won’t take effect until 1 July 2022.

The downsizer super contribution lets Australians nearing retirement make an after-tax super contribution of up to $300,000 per person when they sell their family home and move to a ‘downsizer’ home. 

Around 22,000 people have made downsizer contributions so far9, but this figure could rise dramatically with the Federal Budget lowering the eligibility age for downsizer contributions from 65 to 60, effective from 1 July 2022. 

This initiative doesn’t just support the retirement incomes of older Australians. It’s also likely to bring more properties onto the market, freeing up more homes for young families and upgraders.

The Low and Middle Income Tax Offset has been extended for another year, bringing tax savings worth up to $1,080 for individuals and $2,160 for couples. The maximum benefits will go to those earning between $48,000 and $90,000 annually.

The HomeBuilder grant program, which offered a $25,000 grant (later reduced to $15,000) to build a new home or significantly renovate an established home, has proven enormously popular. So much so that some applicants are experiencing delays in construction work. 

While the HomeBuilder grant is no longer available for new applicants, the Federal Budget has delivered a 12-month extension of the HomeBuilder construction commencement period for existing applicants.

Small business benefits

The Federal Budget offers a few pluses for small businesses, with last year's business write-off perks being extended by another 12 months.

Insights for small businesses

The Federal Budget offers a few pluses for small businesses, with last year's business write-off perks being extended by another 12 months.

It allows businesses with a turnover of up to $5 billion to write-off the full value of any eligible asset like a work vehicle or equipment purchased between the last Federal Budget and 30 June 2023. Additionally,  assets must be acquired from 7:30pm AEDT on 6 October 2020 and first used or installed ready for use by 30 June 2023.10

Talk to your local Mortgage Choice broker about the commercial finance options that could be available to help you invest in new equipment to help your business grow, with potential savings on tax.

TBA Broker Meeting 400X400

Speak to your local broker to see how the budget changes can benefit you.

Need more information?

Bear in mind, the Budget initiatives will need to pass through Parliament before they take effect. Contact your local Mortgage Choice expert today to know how you can start achieving your property goals. 

Your local Mortgage Choice expert

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Posted in: News

1 https://budget.gov.au/
2
 https://www.nhfic.gov.au/what-we-do/fhlds/
3
 https://budget.gov.au/
4
 https://www.corelogic.com.au/sites/default/files/2021-05/210503-CoreLogic-HVI-May21-FINAL.pdf
5
 https://budget.gov.au/
6
 https://www.nhfic.gov.au/what-we-do/fhlds/
7
https://budget.gov.au/
8
 https://budget.gov.au/
9
 https://budget.gov.au/
10
 https://budget.gov.au/2021-22