Budget changes affecting the property and finance sectors include abolition of the First Home Saver Accounts scheme from 1 July 2015 and scrapping of the final round of the National Rental Affordability Scheme (NRAS).
Abolition of First Home Saver Accounts scheme
The First Home Saver Accounts (FHSA) scheme will be abolished from 1 July 2015.
New accounts opened from 14 May 2014 will not be eligible for concessions, with the Government co-contribution to cease from 1 July 2014 and tax concessions and the income and asset test exemptions for government benefits associated with these accounts to cease from 1 July 2015.
Account holders will be able to withdraw their account balances without restriction from 1 July 2015.
Regulations will be made to ensure that anyone seeking to open a new account from 14 May 2014 is informed of these changes by the account provider.
National Rental Affordability Scheme
The Budget also provides that the final round (5) of the National Rental Affordability Scheme (NRAS) will not proceed (Minister’s media release).
Funding for tenanted NRAS properties is not affected.
