The NSW Budget for financial year 2023/24 was revealed on 19 September 2023. Treasurer Daniel Mookhey outlined a plan that addresses COVID-19, rapid technological change, climate change, and global political instability, focusing on economic stability, housing affordability and essential services. We’ve sifted through the details to provide you with insights into the budget features that matter most to prospective homebuyers in NSW.
Affordable Housing And Housing Supply
Housing affordability is a pressing concern for many in NSW. Dwelling prices soared by 27.6% in Greater Sydney and a staggering 47.6% in regional NSW, from the start of 2020 to May 2023. To address this crisis, the government introduced a series of measures:
1. Expanding The First Home Buyers Assistance Scheme
First-time homebuyers can now save up to $30,735 through an expanded assistance scheme. The expanded First Home Buyers Assistance Scheme supports first-home buyers with a stamp-duty exemption for purchases up to $800,000 and a concession for purchases between $800,000 and $1 million. The eligibility requirements have been adjusted to benefit around 84% of first-home buyers, focusing on those purchasing homes worth under $1 million.
2. Revolutionalising Rental Reforms
The government has appointed a state-first NSW Rental Commissioner to make renting fairer, more affordable and secure. Initiatives include:
- Implementing a Portable Rental Bonds Scheme
- Protecting renters from unjust evictions
- Simplifying the process of having pets in rental homes.
The government is also dedicated to supporting new Build-To-Rent trials in the South Coast and Northern Rivers regions, with an investment of $60 million.
3. Accelerating Housing Planning
The faster planning program, backed by an allocation of $24 million, establishes the NSW Building Commission to protect homebuyers from substandard construction.
An additional $9.1 million is dedicated to evaluating housing supply opportunities on government-owned sites, focusing on providing new social housing.
4. Housing And Infrastructure Plan
A $2.2 billion investment in housing and infrastructure aims to tackle the longstanding issue of insufficient new housing supply. It includes:
- $300 million: Reinvested in Landcom; this allocation will fund the construction of thousands of new dwellings, with 30% earmarked for affordable housing.
- $400 million: To Restart NSW to develop infrastructure that will allow more housing opportunities throughout the state.
- $1.5 billion: Designated for infrastructure projects associated with housing under the Housing and Productivity Contribution initiative.
5. The Essential Housing Package
This $224 million package encompasses various measures, including social, affordable and private homes, housing services for Aboriginal and Torres Strait Islander families, and support for the critical maintenance of social housing.
We asked Home Loan Experts CEO Alan Hemmings for his insights on the NSW budget. Here’s what he had to say.
“I have to say the budget was not particularly overwhelming. The increase in places for first-home buyers in the assistance scheme is welcome; it will allow more first-home buyers an opportunity to avoid stamp duty. However, with property prices continuing to grow in Sydney, there will not be many properties left that qualify. Average unit prices are over the $800K total exemption, and average house prices in Sydney are well above the $1m concessional threshold.
“The other housing announcements will not really help now with housing supply. Yes, Landcom will be able to build an additional 4,700 homes, but with 1,400 of these being made available for affordable housing, the other 3,300 will not help improve supply, particularly with them not starting until 2025.”
We Can Help!
Are you a first-home buyer in New South Wales eager to benefit from the expanded First Home Buyers Assistance Scheme? We care about securing the best deals and making your home loan journey effortless. Contact us today at 1300 889 743 or fill in our free online assessment form, and let’s make your home loan process smooth and stress-free.