Red23 has welcomed initiatives outlined in the 2020 Federal Budget that will have a direct benefit on the Property Industry, especially in Victoria. Bringing forward Personal Income Tax cuts, an expansion to the First Home Loan Deposit Scheme, benefits for employers to take on new workers and $1.1 billion funding for Victorian road and transport infrastructure will be invaluable initiatives to support the recovery efforts post Covid-19.

We especially acknowledge the extension of the First Home Loan Deposit Scheme, which will see an extra 10,000 First-Home Buyer applications this financial year. This coupled with the HomeBuilder Scheme, First Home Buyers Grant, low interest rates and the scrapping of the Responsible Lending laws, will give First-Home Buyers with secure employment and steady savings a unique opportunity to purchase a new home during 2020.

Red23 will continue to lobby for an extension to the HomeBuilder Scheme post the 31 December cut-off date. This extension would result in more blocks of land being eligible, allowing more first home buyers to enter the market as well as families who have been unable to sell their home in the established real estate market this year to consider upgrading and building new in 2021.

Lastly, we remain conscious of the ongoing effects the drop in population within Victoria and Australia has had and will continue to have on the industry until interstate and national borders re-open. We expect population growth to remain very weak 0.4% in 2021 and 2022, which will keep housing demand low with a flow-on effect for housing construction.